The highest individual final compensation for the Mangalore air-crash is likely to be `2.8 crores to the family of a wealthy Gulf-based businessman who died in the crash, senior government sources have told this newspaper. The second-highest compensation amount is likely to be `1.6 crores to the family of a software engineer who also died in the crash, sources said.
As many as 158 persons had died in the crash of the Air India Express aircraft on May 22 at Mangalore airport last year. The aircraft had flown in from Dubai. The final compensation amount is being paid by insurance companies, sources said.
When contacted, national carrier Air India declined to disclose any details of individual final compensation amounts, saying these were highly confidential as per the Montreal Convention and could not be revealed.
As per law, the final compensation amount in the event of any air-crash has to be assessed in accordance with the provisions of the Carriage by Air Act, 1972, which incorporates the international Montreal Convention. Under the provisions of the Montreal Convention, the amount of final compensation is to be worked out in each case separately based on “proof of loss basis”.
This refers to the documentation and extent of loss that has to be submitted to the insurance company in each case separately. Government sources say that as per the “proof of loss basis”, earning capacity and wealth of the victims is also taken into consideration while deciding the compensation to family-members.
Not surprisingly, the “proof of loss basis” has drawn severe criticism from relatives of some of the crash victims who have alleged that this will lead to gross inequalities in death (of victims) and compensation amount decided for families of the victims.