Govt clears amendments for more compensation for fliers

Compensation to fliers using Indian carriers for loss of life or baggage and cargo is set to be revised as the government has cleared amendments to a law governing such liability.
The Union Cabinet has approved amendments to the Carriage by Air Act, 1972 which seeks to enhance Special Drawing Rights (SDRs) to a passenger to 1,13,100 from the 1,00,00 in case of death.
Similarly, in case of delay, a traveller would be entitled to receive a compensation of SDR 4,694 as against SDR 4,150.
The compensation for loss or destruction of baggage have also been hiked to SDR 1,131 from 1,000 SDR currently.

The SDR is a mix of currency values established by the International Monetary Fund (IMF).
Also, the airline would now have to pay a higher compensation to passengers in the case of damage, loss or delay in delivering the cargo. This limit has been enhanced to SDR 19 from the earlier limit of SDR 17.

The government has also brought in an enabling clause in the amendment, giving the Civil Aviation Ministry the right to determine these compensations on their own instead of seeking Cabinet approval as and when the revised limits are notified by the ICAO.
The amendment enables the Government to revise the liability limits of air carriers as per the Montreal Convention.

The revised provision of the Act would also give effect to the revised limits and benefit the air travellers, the Government said.
The International Civil Aviation Organisation (ICAO) determined an inflation factor of 13.1 per cent, which exceeded the stipulated 10 per cent threshold for triggering an adjustment in the limit liability.
The revised limits of liability have become effective since December 30, 2009 and this made the Government to amend the provisions of the Act.
A bill to amend the Act will soon be brought to Parliament.