Bill to revise airlines' liability introduced in Lok Sabha

A Bill to revise the liability limits of airlines on compensation for death, injury and loss of baggage and cargo was introduced in Lok Sabha on Friday, under which the compensation for death in an air accident goes up to over Rs 1 crore from Rs 89 lakh. The Carriage by Air (Amendment) Bill introduced by Civil Aviation Minister Ashok Gajapathi Raju, would enable the government to revise the liability limits of air carriers in line with the Montreal Convention, which was acceded to by India in May 2009. By the revised package, the Bill intends to review the liability limit for damage in case of death or bodily injury for each person from 100,000 SDR (special drawing rights) to 113,100 SDR.

As per the latest exchange rate, the compensation limit rises to over Rs 1 crore from almost Rs 88.71 lakh at present. One SDR, as on August 6, is equivalent to Rs 88.71.

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

As per the Bill, the liability for delay in carriage for each person is proposed to be raised from 4,150 SDR to 4,694 SDR, while the liability in case of destruction, loss, damage or delay of baggage is proposed to be raised from 1,000 SDR to 1,131 SDR.

The liability in case of destruction, loss or delay in relation to the carriage of cargo has been raised from 17 SDR to 19 SDR.

The liability limits are revised once every five years by the UN body International Civil Aviation Organisation (ICAO) on the basis of a determined inflation factor of 13.1 per cent, triggering an adjustment in the limits.

The amendment would also enable the government to revise the limits of liability as and when the revised limits are notified by the ICAO.

The revised limits would become effective once the bill is passed by Parliament.