Cabinet approves amendment to air carriers' liability limits

The cabinet has approved an amendment to the Carriage by Air Act which will enable the government to revise the liability limits of air carriers concerning injury and loss of baggage and cargo.

Official sources said on Wednesday that the decision taken by the cabinet at its meeting on Tuesday will benefit people travelling by air.

They said the liability limits were being revised as per the Montreal Convention.

Damage in case of death or bodily injury for each person was revised from 1,00,000 SDR (special drawing rights) to 1,13,100.

The liability for delay in carriage for each person has been raised from 4,150 SDR to 4,694 SDR. The liability in case of destruction, loss, damage or delay of baggage for each person has been 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.

Officials said the currency value of the SDR is determined by summing the values in US dollars, based on market exchange rates, of a basket of major currencies - the US dollar, Euro, Japanese yen and pound sterling.

They said the International Civil Aviation Organisation (ICAO) determined an inflation factor of 13.1 percent which exceeded 10 percent, the threshold stipulated for triggering an adjustment in the limit of liability.

The revised limit of liability became effective on December 30, 2009.

Officials said relevant provisions under the Carriage by Air Act, 1972 have to be amended to give effect to the revised limits as there was no enabling provision in the Act for promulgating revised limits of liability.

An amendment is being made to the Carriage by Air Act by inserting a new provision enabling the government to revise the limits of liability as and when the revised limits are notified by the ICAO.

India acceded to the Montreal Convention in May 2009.

Article 24 of the convention provides for revision of liability limits of air carriers for damages in relation to carriage of passengers, baggage and cargo at a five year interval.