Mangalore Air Crash Higher Compensation for Victims Kin Swedish law firm negotiating with Air Indias Insurers

National Carrier, Air India which is already running into huge losses has been given one month’s time by the Kerala High Court to pay compensation amount of Rs. 75 lakh (approximately $169,000) to the families of each of the kin those killed in last year’s Mangalore air crash.  Justice P.R. Ramachandran Menon held that the families were entitled to a minimum of one lakh SDR (Special Drawing Rights equal to Rs. 75 lakh) as compensation based on the Montreal Convention. 

National Carrier, Air India which is already running into huge losses has been given one month’s time by the Kerala High Court to pay compensation amount of Rs. 75 lakh (approximately $169,000) to the families of each of the kin those killed in last year’s Mangalore air crash.  Justice P.R. Ramachandran Menon held that the families were entitled to a minimum of one lakh SDR (Special Drawing Rights equal to Rs. 75 lakh) as compensation based on the Montreal Convention.

The Petition was filed by Abdul Salam and Ramla, parents of B. Mohammed Rafi, who died in the crash against the unreasonable settlement amount of Rs. 35 lakh offered by Air India and seeking a declaration and enforcement of their rights under the Montreal Convention.

According to Hindu, the Court pointed out that the Carriage by Air Act, 1972, a special statute enacted to give effect to the Montreal Convention, did not draw any distinction among passengers over payment of one lakh SDR compensation. And the same should be paid by the carrier for the death of or bodily injury sustained by a passenger in an accident on board, subject to the satisfaction of the extent of damage. The air carrier could pay compensation higher than the liability, but could not avoid or limit the liability provided under the Montreal Convention.

The petitioners were represented by Advocate Kodoth Sreedharan while Senior Partner H.D. Nanavati of Mulla & Mulla represented Air India before the High Court.

Mohammed Beary, President of the Mangalore Air Crash Victims Family Association told media that Nanavati had been staunchly opposing the claim for awarding compensation as per the provisions of the Montreal convention. He further said, “Nanavati had also ridiculed the then aviation minister Praful Patel by saying that he did not have legal knowledge. The Kerala High Court judgment will be a boost for our fight against the discriminatory payout policy pursued by the Air India and their agencies”.

The families of air crash victims have been fighting the battle for higher compensation for more than a year. It has been a continuous struggle between Air India, its legal counsels Mulla & Mulla and the families of the victims. Mulla & Mulla had fixed the compensation amount at Rs. 35 lakh for men, Rs. 30 lakh for women and Rs. 25 lakh for children killed in the tragedy, which is much lesser than the Rs. 75 lakh awarded by the High Court under the Montreal Convention.

One of the victim’s relative had alleged that Mulla & Mulla Senior Partner Nanavati was monopolising the discussion during the negotiations leaving absolutely no room for others to present their version and causing undue delay in settling the cases.

This attitude of Mulla & Mulla and the meagre compensation package offered by them had forced the Mangalore Air Crash Victims Family Association to hire a Swedish law firm, Advokaterna, Liman & Partners to settle the issue.

Speaking to Bar & Bench, Stephen Erikson said, "We are currently studying yesterday’s judgement from the Kerala High Court in the Abdul Salam case. The Court awarded the family 100,000 SDRs (approx $169,000). Although the judgement was positive for this family we believe the judgment will have little impact on our ongoing discussions with the Air India Express insurers since we are demanding substantially higher compensations than $169,000 for the major group of families that we represent. We will shortly start a series of meetings with the insurers and our aim is to settle all families claims expeditiously”.

The Kerala High Court judgment has been welcomed by the Association. However, since now the fault of the pilot has been established, the Association will consider the next course of action. For the present, the relief in the form of higher compensation has been granted to the families of the victims.