Airlines will soon have to compensate for passengers loss


Finally now the balls are in the court of passengers, remember how much time you have been wasted in waiting for an flight which was exceptionally delayed by hours or searching for your baggage.


Well, now the time is changing gradually.

Airlines will soon have to compensate passengers more for losing their baggage, injuries caused, or exceptional delays.

The Carriage by Air (Amendment) Bill has been passed by both houses of parliament, which means it will now be sent to President Pranab Mukherjee for sign-off after which it becomes law.

Airlines will then be obliged to compensate passengers at global rates.

To calculate what is due, what seems like a complex formula is used based on Special Drawing Rights or SDR. The currency value of the SDR is based on the market exchange rates of major currencies – US dollar, Euro, Japanese Yen and Pound Sterling.

Based on the latest exchange rates, one SDR is equivalent to around Rs. 93.

The bill cleared by parliament increases the airline’s liability limit for damage in case of death or bodily injury to more than a crore.

The liability for delays per passenger will increase from 3.86 lakhs to nearly 4.37 lakhs. For damages to bags or luggage that is lost, airlines could have to pay a little over a lakh.

The liability limits are revised once every five years for airlines around the world.

Wefornews Bureau

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