Air India Offers Additional Rs 10 Lakh to Families in Final Compensation Settlement
Air India Offers Extra Rs 10 Lakh in Final Compensation Deal

Air India Announces Enhanced Compensation Package for Victim Families

In a significant development, Air India has declared that it will pay an additional Rs 10 lakh to the families of victims whose final compensation amount is calculated at Rs 25 lakh or less. This extra payment, however, is contingent upon the families signing a final settlement document that legally waives their right to pursue any future claims against the airline, original equipment manufacturers, and government agencies.

Transparent and Compassionate Communication

In an official statement released on Thursday, Air India expressed its deep understanding that monetary compensation cannot truly compensate for the loss of a loved one. The airline emphasized that providing clarity on final compensation is a crucial step for the families affected by the tragic incident. "Air India wholeheartedly understands that monetary compensation cannot make up for the loss of a loved one. At the same time, getting more clarity about final compensation is an important moment for the families affected by this tragic incident," the statement read.

The airline has already made initial interim payments of Rs 25 lakh to the families of the deceased. Additionally, the process for ex-gratia payments of Rs 1 crore from The AI-171 Memorial and Welfare Trust is currently underway. Air India has now initiated the final compensation process, ensuring that the amounts offered are fair and in accordance with legal standards. "We have ensured that the final compensation being offered to families is fair and in accordance with the law. The information about this has been shared in a transparent, compassionate way with the affected families," the airline added.

Compensation Calculation and Legal Framework

Sources indicate that the compensation for each family will vary, as it is calculated based on multiple factors including the victim's age, income, number of dependants, and other relevant circumstances. The Rs 25 lakh already paid as interim compensation will be deducted from the final settlement amount. The remaining balance will then be disbursed to the family upon signing the waiver document.

For families whose final compensation is determined to be Rs 25 lakh or less, an extra Rs 10 lakh will be provided once they sign the indemnity waiver. This move was first reported by The Times of India in its Thursday edition, which highlighted that the carrier was offering final monetary settlements in exchange for liability waivers.

Opposition from Legal Representatives

A US-based law firm representing over 100 victim families has voiced strong opposition to this approach. The firm has advised its clients not to sign the settlement document until the full truth from the crash investigation is revealed. This legal stance underscores the ongoing complexities and emotional challenges surrounding the compensation process.

Industry Standards and Finality of Process

An Air India spokesperson clarified that the airline is adhering to recognized industry standards, where compensation payments are made on a "full and final" basis to provide closure. "While we cannot discuss specific cases, the amounts offered to each family have been calculated using the applicable legal framework and differ depending upon individual circumstances. Families agreeing to receive final compensation are requested to confirm that they have no future claims against Air India or anyone else, including original equipment manufacturers, airport, govt agencies," the statement elaborated.

The airline stressed the importance of this waiver to ensure the process is definitive and to prevent any future direct or indirect claims. "This particular aspect is important in order to ensure that the process is indeed final, and to prevent Air India from receiving any direct or indirect claims in the future. We have been transparent in our communication to families, suggesting options, including seeking legal advice before taking a final decision," it concluded.