Business Daily from THE HINDU group of publications Saturday, May 05, 2007 ePaper |
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Airlines Logistics - Accidents Government - Policy Bill to hike compensation for air accidents introduced Our Bureau
New Delhi May 4 A new Bill has been introduced in Parliament that seeks to enhance more than three-fold the compensation that an air traveller would be entitled to in case of death or injury while on an international flight from here. Moving the Carriage by Air (Amendment) Bill, 2007, the Minister for Civil Aviation, Mr Praful Patel, said that it is proposed to enhance the amount of compensation for death or injury to $65,000 from the existing level of $20,000. The Bill seeks to amend sections of the Carriage by Air Act, 1972 and accession to the Montreal Convention, 1999 to give effect to the new rules. Non-accession to the Montreal Convention and not making changes in the Carriage by Air Act 1972 had created a situation whereby a passenger whose journey originates in the US or the UK is entitled to a much higher compensation than what a passenger whose journey originates here is entitled for. Airline officials indicated that without the passage of the Bill while an Indian passenger would be entitled to a maximum compensation of up to Rs 5 lakh, a passenger in the US was entitled to receive compensation of $500,000 in case of any eventuality. The passage of the Bill will also provide for advance payment in case of death or bodily injury. Besides, the new legislation seeks to expand the choice of jurisdiction to include the place of domicile of the passenger. In January this year the Union Cabinet gave its approval to the Ministry of Civil Aviation for moving the Bill.
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