JOIN USThere are reasons for cheer to fliers and at the same time, some worries for airlines facing cash crunch.
The government has cleared amendments to Carriage by Air Act, 1972, enhancing compensation for death, baggage loss, damage, loss or delay in delivering cargo.
The amendments seeks to enhance Special Drawing Rights (SDRs), a mix of currency values established by the International Monetary Fund (IMF), for passengers.
For death, the SDRs to a passenger has been increased to 1,13,100 from 1,00,000 while in case of delay, a traveller would receive a compensation of SDR 4,694 as against SDR 4,150. As on March 18, according to IMF, one SDR is valued at Rs 86.20. The compensation for loss or destruction of baggage have also been increased to SDR 1,131 from 1,000 SDR currently. A flier who had his baggage lost could get a compensation of upto around Rs 97,000.
According to an official document, the airline would now have to pay SDR 19 instead of 17 in case of damage or loss or delay in delivering the cargo.
The amendments give an opportunity to the Centre to revise the liability limits of air carriers as per the Montreal Convention. The revised provision of the Act would give effect to the revised limits and would be beneficial for the travelling public, it said.
The government has also brought in a new clause, giving the Civil Aviation Ministry the right to determine compensations on their own instead of seeking Cabinet approval as and when the revised limits are notified by the ICAO.