The crash of an Air India flight in Ahmedabad on June 12, 2025, has brought up legal questions about airline responsibilities, victim compensation rights, and the relevant Indian legal framework. This article reviews the legal provisions and remedies available to passengers, their families, and affected third parties under Indian law.

Legal Framework for Addressing Air Accidents in India

India's aviation industry is governed by a robust legal framework designed to ensure safety, accountability, and effective investigation in the event of airline crashes. These laws encompass a wide range of provisions, from investigation procedures to compensation for victims, and are aligned with international conventions. Below is a detailed exploration of Indian aviation laws applicable in the unfortunate occurrence of an airline crash.

Key Legislative Instruments

India's aviation sector operates under the purview of several legislative instruments that play pivotal roles in regulating air travel and addressing airline accidents:

The Aircraft Act, 1934

This act serves as the bedrock of Indian aviation law. It empowers the Directorate General of Civil Aviation (DGCA) to regulate the safety and airworthiness of aircraft. In the event of an airline crash, the DGCA oversees investigations and ensures compliance with international standards.

The Aircraft Rules, 1937

These rules outline the operational standards for airlines, airports, and air traffic controllers. They also define procedures for accident investigations and reporting, which are critical in determining the causes of an airline crash and preventing future occurrences.

Specifically under Rule 24 of the Aircraft Rules, 1937, airlines are required to provide a minimum compensation of ₹20 lakh for the death of a passenger on a domestic flight.

Carriage by Air Act, 1972

This act governs the liability of airlines for damages sustained by passengers and their belongings during air travel. It incorporates provisions from international conventions such as the Warsaw Convention and the Montreal Convention, ensuring that compensation for victims is in line with global standards.

Civil Aviation Requirements (CAR)

The CARs issued by the DGCA detail operational guidelines for airlines, including mandatory reporting of incidents and accidents. These requirements are crucial for fostering transparency and accountability in the aviation sector.

Fatal Accidents Act, 1855

Allows dependents of deceased persons to claim compensation.

Public Liability Insurance Act, 1991

Applicable in some cases for third-party industrial accidents, including aviation-related ground damage.

Article 21 of the Constitution

Provides the right to life and personal liberty, forming a basis for constitutional remedies.

Investigation of Airline Crashes

Role of the DGCA and the Aircraft Accident Investigation Bureau (AAIB)

The DGCA is responsible for the initial assessment of airline crashes to determine whether a detailed investigation is necessary. If deemed significant, the AAIB is tasked with conducting comprehensive investigations. The AAIB operates independently to ensure impartiality and adheres to international standards set by the International Civil Aviation Organization (ICAO).

Process of Accident Investigation

The investigation process includes:

• ·         Securing the crash site to preserve evidence.
• ·         Recovering the black box (flight data recorder and cockpit voice recorder).
• ·         Analysing the wreckage and interviewing witnesses.
• ·         Collaborating with international agencies if the crash involves foreign airlines or aircraft.

Publication of Reports

Following an investigation, the AAIB publishes a detailed report outlining the findings, causes of the crash, and recommendations for enhancing safety measures.

Compensation for Victims

Liability Under the Carriage by Air Act

Victims of airline crashes or their families are entitled to compensation as per the Carriage by Air Act, 1972. The act includes provisions for passengers, cargo, and baggage, with compensation amounts determined by the Montreal Convention.

Additional Compensation Mechanisms

Following the Ahmedabad crash, Air India and the Tata Group announced voluntary ex gratia compensation for families of the deceased and injured. It is important to note that:

Ex gratia payments do not affect the legal right of victims to pursue further compensation through courts or statutory bodies.

Insurance Coverage

Airlines operating in India are required to maintain insurance policies that cover liability for passenger injuries, deaths, and damage to third parties. This ensures financial support in the aftermath of a crash.

International Conventions and Cooperation

India is a signatory to several international conventions that influence its aviation laws and practices:

·         Chicago Convention (1944): Establishes global standards for aviation safety, including accident investigations.

·         Warsaw Convention (1929): Governs liability for international air travel, including accidents.

·         Montreal Convention (1999): Modernizes provisions of the Warsaw Convention and enhances compensation mechanisms for victims.

International cooperation plays a vital role, especially when crashes involve aircraft or passengers from multiple countries.

Preventive Measures

Indian aviation laws emphasize prevention to reduce the occurrence of airline crashes. Key measures include:

• ·         Regular safety audits of airlines and airports.
• ·         Mandatory training programs for pilots and crew members.
• ·         Implementation of advanced technologies for air traffic management.
• ·         Encouragement of reporting unsafe practices through confidential channels.

Legal Recourse and Accountability

Prosecution of Negligence

In cases where negligence or misconduct contributes to an airline crash, individuals or entities may face prosecution under various legal provisions. This includes criminal charges for gross negligence and penalties for regulatory violations.

Role of Courts

Indian courts play a significant role in adjudicating disputes related to airline crashes. They assess claims for compensation, determine liability, and ensure justice for victims and their families.

Insurance Liabilities

AI171 Crash Triggers ₹1,500+ Cr Insurance Response.

This crash of Air India’s London-bound Flight AI171 near Ahmedabad on 12 June 2025, involving a Boeing 787 Dreamliner, has led to one of the largest-ever aviation insurance events in India.

Insurance Highlights:

Lead Insurer: The aviation policy is led by Tata AIG General Insurance, backed by Indian co-insurers like GIC Re, United India, Oriental Insurance, and ICICI Lombard.

Global Reinsurance Support: Around 95% of the risk is reinsured with major global players including AIG, AXA XL, and other reinsurers in the London and Bermuda markets.

 Hull Loss (Aircraft Damage): The Boeing 787-8 aircraft, declared a total loss, is estimated to be insured for ₹650–700 crore, based on age-adjusted insured value.

 Passenger Liability:  Under the Montreal Convention, families of deceased passengers are entitled to ~₹1 crore each, that is, Airlines are strictly liable for proven damages up to 128,821 Special Drawing Rights (SDRs), which is approximately ₹1.25 crore per passenger. With 240+ fatalities, this could result in payouts exceeding ₹240 crore.

Total Projected Insurance Payout: Combined hull and liability exposures may cross ₹1,000–1,500 crore, depending on final settlements and legal claims.

Risk Distribution: Indian insurers retain only around 5% of the exposure, amounting to ₹50–75 crore, while the bulk will be absorbed by foreign reinsurers.

Insurance distribution of Air India:

TATA AIG - 45%

NEW INDIA - 32%

ORIENTAL INS. - 14%

ICICI LOMBARD - 7%

UIIC LTD - 1%

NATIONAL - 1%

 Policy Scale: Air India’s fleet-wide aviation cover reportedly runs into ₹8,000–10,000 crore, with an annual premium estimated around ₹250 crore.

 Market Impact: This incident is likely to harden the global aviation insurance market, especially for wide-body aircraft operators in Asia.

 Conclusion

The legal framework in India for handling airline crashes is comprehensive, focusing on accountability, safety, and victim support. By adhering to international standards and continuously evolving its regulations, India's aviation sector aims to minimize risks and foster trust among passengers. While airline crashes remain tragic events, the country's robust laws and mechanisms ensure thorough investigation, fair compensation, and preventive measures to uphold the safety of air travel.