Indian carriers will soon have to pay compensation amounts equivalent to the rates paid by their global counterparts

news Air Travel Friday, March 11, 2016 - 18:11

A bill providing for enhanced compensation to air travellers in case of death, injury, lost baggage or even inordinate delay in flights, was passed by Parliament today.

The Carriage by Air (Amendment) Bill was passed by the Lok Sabha in December 2015 and by the Rajya Sabha, with certain amendments, on March 2. The bill, along with the amendments, came back to the Lower House today and was adopted by a voice vote.

Once it gets the nod of the President and becomes an Act, the law would require Indian carriers to pay compensation amounts equivalent to the rates paid by their global counterparts.

It would allow the government to revise the liability limits of airlines in line with the Montreal Convention, which India acceded to in May 2009.

The compensation amount for death in an air accident and the amount would be calculated on the basis of SDR (Special Drawing Rights). The Bill intends to raise the liability limit for damage in case of death or bodily injury for each person from 1,00,000 SDR to 1,13,100 SDR.

The currency value of the SDR is based on market exchange rates of a basket of major currencies, namely US dollar, Euro, Japanese Yen and Pound Sterling.

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