Air India crash: Tata to pay ₹1 cr to victims on ground, toll rises to 274

The Air India Dreamliner crashed near Meghaninagar, Ahmedabad, killing 274, including 33 on ground; Tata to pay ₹1 cr to each victim's kin and rebuild damaged college hostel

The death toll from the Air India Boeing 787 Dreamliner (flight AI171) crash in Ahmedabad on Saturday climbed to 274, including 33 of those who were on the ground when the aircraft went down. The Tata Group, which owns Air India, has extended its compensation package to include these victims.

 

In a statement, the Tata Group confirmed that the compensation of ₹1 crore, initially announced for passengers on board, will also be offered to the families of those who died on the ground. The conglomerate has also committed to covering the medical expenses of all those injured in the crash, The Indian Express reported.

 

 

“They will make sure that injured individuals receive all the care and support they need,” the statement added.

 

  The flight, bound for London, crashed into a crowded locality near Meghaninagar, Ahmedabad, shortly after departing from the Sardar Vallabhbhai Patel International Airport on Thursday. The tragedy claimed the lives of 241 people onboard. The wide-body aircraft was carrying 242 individuals, including both passengers and crew.

 

The flight made a distress call to air traffic control at 1:39 pm local time, reporting trouble shortly after takeoff. Radar data indicates that the plane had climbed to only about 625 feet before disappearing from the system. Moments after the distress signal was sent, the pilot issued an urgent “MAYDAY, MAYDAY…” call. Soon after, eyewitnesses and officials confirmed that the aircraft caught fire in mid-air and crashed just outside the airport perimeter, igniting a massive blaze in the surrounding area.

 

Locals, students among the deceased

 

Among the deceased and injured on the ground are believed to be doctors, hospital staff, students, and local residents from Meghaninagar — a densely populated area near the airport. The aircraft, while crashing, struck part of the BJ Medical College campus, causing significant damage.   

 

  The Tata Group has also pledged to assist in rebuilding the BJ Medical College hostel, which suffered severe structural damage in the crash. Many of the ground victims are thought to have been on or near the college premises at the time of the incident.

 

Insurance compensation of ₹1.5 crore likely

 

In addition to the Tata Group’s compensation, each passenger who died in the crash is expected to receive around ₹1.5 crore from insurance providers. The primary insurers for Air India include Tata AIG General Insurance — which holds over 40 per cent of the coverage — along with ICICI Lombard, New India Assurance, and other public sector insurers. The final compensation liability will be managed by a consortium of reinsurers led by AIG.