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 one crore from almost Rs89 lakh now.The Carriage by Air (Amendment) Bill, 2015, 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. As per the revised compensation package, the bill intends to review the liability limit for damage in case of death or bodily injury for each person from 1,00,000 SDR (special drawing rights) to 1,13,100 SDR.
As per the latest exchange rate, the compensation limit rises to over `one crore from almost Rs88.71 lakh at present. One SDR, as on August 6, is equivalent to Rs88.71. 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 eachperson 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.