Air India May Face Unlimited Liability If Found Negligent
Air India and Boeing could face unlimited liability over the recent Ahmedabad plane crash that killed 241 people, according to international aviation law experts. The crash, which occurred during take-off on June 12, involved a Boeing 787 aircraft and resulted in one of India’s deadliest aviation disasters in recent memory.
While Air India holds a $1.5 billion liability insurance policy reinsured through the London market, legal experts say that compensation could far exceed standard limits if negligence is proven. Under the Montreal Convention, airlines are automatically liable for a minimum compensation of 151,800 special drawing rights (SDRs)—an IMF-defined unit valued at roughly ₹120 each—equating to about ₹1.82 crore per victim.
Legal teams from the UK’s Keystone Law and Chicago-based Wisner Law Firm have already launched an independent probe into the disaster. The victims included 181 Indian nationals, 53 British citizens, seven Portuguese, and one Canadian, making this a case of international legal significance. The Ahmedabad crash has opened up one of India’s most complex aviation liability cases, where legal interpretations of negligence and international norms will determine compensation.
Lawyers suggest that families of foreign victims may file claims in their home countries, where courts could award higher compensation based on personal circumstances and future earnings. If Boeing is found to have provided a faulty aircraft, it too could face limitless liability, especially in jurisdictions like the US and UK, where court systems are known to support high-value tort claims in aviation negligence cases.
Air India’s ₹1 crore compensation per victim may only be the beginning, as experts warn of broader liabilities from legal proceedings and property damage after the Ahmedabad crash. The airline’s $1.5 billion policy may face pressure, especially due to third-party claims. Courts could impose higher damages under tort law, especially if negligence is proven, mirroring past cases like the 2010 Mangalore crash where compensation exceeded expectations.
As global legal teams launch probes and tort claims surface, Air India and Boeing must brace for prolonged scrutiny. Beyond monetary compensation, this case could shape future aviation safety, insurance benchmarks, and accountability frameworks. As investigations unfold and evidence emerges, both Air India and Boeing face mounting legal and financial scrutiny in one of the most high-stakes aviation liability cases in India.
