‘Insurance framework is lifeline but also a battleground’: Legal expert

'The aviation industry in India operates in a high-stakes environment where risks like mechanical failures, human error, and unpredictable weather can spiral into catastrophic losses,' said Sonam Chandwani, Managing Partner, KS Legal & Associates

Mumbai: From a legal standpoint, the insurance framework is a lifeline but often a battleground and the Air India incident in Ahmedabad exposed how quickly claims can balloon, pushing premiums skyward and forcing airlines to cut corners elsewhere, which only compounds risk, said Sonam Chandwani, Managing Partner, KS Legal & Associates, one of the top law firms which works with big corporate houses and companies.

“The aviation industry in India operates in a high-stakes environment where risks like mechanical failures, human error, and unpredictable weather can spiral into catastrophic losses. From a legal standpoint, the insurance framework is a lifeline but often a battleground,” she said.

“Airlines lean on complex policies such as hull insurance for aircraft damage, passenger liability for injuries, and third-party coverage for ground impacts but these are underwritten in a global market where Indian carriers face scrutiny for inconsistent safety records. The system is robust on paper, but when a crash happens, insurers play hardball, delaying payouts to minimize exposure,” said Chandwani.

“The Air India incident in Ahmedabad exposed how quickly claims can balloon, pushing premiums skyward and forcing airlines to cut corners elsewhere, which only compounds risk. It’s a vicious cycle, and regulators like the DGCA need to tighten oversight to break it, or we’re just rolling the dice on the next disaster,” she said.

“Legally, passengers’ rights in India post-crash hinge on the Montreal Convention for international flights, guaranteeing families around Rs 1.4 crore per victim without proving fault a solid starting point. But here’s the rub: domestic flights lack such clear mandates, leaving claimants at the mercy of airlines’ goodwill or sluggish courts. If negligence is proven, payouts can soar, but it's difficult navigating India’s legal quagmire cases drag for years, and airlines exploit delays to wear families down. "It's important to get travel insurance with at least Rs 50 lakh or above accidental death coverage; it’s a cheap hedge against airline stonewalling,” she said.

“The two-year claim window sounds generous, but without sharp legal help, families often settle for peanuts. The system isn’t broken, but it’s tilted against the DGCA and needs to step up and enforce faster, fairer resolutions,” she added.