Air India told CNBC-TV18’s Shivani Bazaz that families of 96% of those who died in the crash have so far received interim compensation of ₹25 lakh each. Separately, 91% of eligible families have received the ₹1 crore ex-gratia assistance announced by Tata Group.
According to the airline, the remaining compensation cases largely involve incomplete documentation or ongoing family disputes. In some cases, families have declined to accept the ex-gratia payment.
Following the crash, Air India, Tata Group and insurers announced a series of financial support measures for victims’ families, while compensation claims under international aviation liability rules and insurance policies began to be processed.
Interim compensation largely disbursed
Air India also said 94% of those injured on the ground have received either interim compensation or full and final settlements, depending on the nature of injuries sustained and any loss of livelihood.
According to the airline, the remaining cases largely involve individuals who collected claim forms after the crash but have not yet submitted the required documentation.
In the days following the accident, Air India announced interim compensation of ₹25 lakh for the families of each deceased passenger and the sole survivor to help address immediate financial needs.
The airline said the amount would be adjusted against final compensation settlements.
With most interim payments now disbursed, Air India said it has begun the process of determining final compensation and is engaging with affected families. The airline added that families are under no deadline or obligation to accept compensation offers within a specified timeframe.
Tata Group’s ₹1 crore ex-gratia assistance
Separately, Tata Group Chairman N Chandrasekaran announced an ex-gratia payment of ₹1 crore for the family of each deceased victim as part of the conglomerate’s support measures following the crash.
According to Air India, ex-gratia payments have been disbursed to 91% of eligible families. The payment was independent of compensation payable under insurance policies and aviation liability frameworks.
The airline said pending cases primarily involve incomplete documentation or situations where families have declined to accept the payment.
Insurance claims and legal compensation
Apart from the assistance announced by Air India and Tata Group, compensation claims have also been processed under international aviation liability rules, including the Montreal Convention.
These claims are separate from ex-gratia support and are covered through the airline’s liability insurance arrangements.
The crash also triggered claims under Air India’s aviation insurance programme, including passenger compensation, third-party liabilities arising from deaths, injuries and property damage on the ground, as well as the loss of the Boeing 787 Dreamliner involved in the accident.
Families of some victims were additionally eligible for benefits under individual life insurance policies, travel insurance plans and personal accident covers.
Following the crash, several insurers, including LIC, simplified documentation requirements to help families process claims more quickly.
Long-term support through welfare trust
Beyond immediate financial assistance, Tata Group subsequently established the AI171 Memorial and Welfare Trust to provide long-term support to affected families and others impacted by the disaster.
The trust was set up separately from compensation and insurance mechanisms linked directly to the crash and is intended to support those affected over the longer term.
