GoI not to challenge Kerala HC order on higher compensation for victims

25 Jul 2011

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Mumbai: The Government of India will not challenge a Kerala High Court order asking state-owned carrier Air India to properly compensate next of kin of the victims of the Mangalore air crash, which claimed 158 lives.

"We welcome the Kerala High Court order to grant compensation of Rs75 lakh each to the families of the Air India Express' Mangalore crash victims. We have also directed Air India to ensure that the insurance companies settle the payments expeditiously," civil aviation minister Vayalar Ravi informed the media through e-mail.

Senior Air India Express officials said there was no financial implication in this decision for Air India as the affected parties would be insurance firms.

Officials pointed out that a total of Rs57 crore had already been disbursed as compensation to the next of kin of 74 victims and so far there had been no disputes.

On 20 July, the Kerala High Court ordered Air India to pay Rs75 lakh to each to the next of kin of the 158 victims of the Mangalore air crash, which took place on 22 May last year.

The Air India management was reported to have been contemplating a challenge to the Supreme Court.

If insurers also accept the government point of view, then they would have to shell out around Rs118.5 crore as compensation. Of this amount Rs57 crore has already been paid as interim compensation.

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