Air India has initiated the disbursement of interim compensation amounting to ₹25 lakh to the families of the victims and the sole survivor of the recent Air India Flight AI171 crash near Ahmedabad. The airline confirmed on Saturday, June 21, 2025, that three families have already received the payments, with the remaining claims currently being processed.

This interim compensation is in addition to the ₹1 crore (approximately GBP 85,000) support previously announced by the Tata Sons group, Air India's parent company. The ₹25 lakh is intended to provide immediate financial assistance to the affected families, helping them cope with the initial challenges following the tragic event.

The Air India flight AI171, a Boeing 787-8 Dreamliner en route to London, crashed shortly after takeoff from Ahmedabad on June 12, 2025, resulting in the deaths of 241 passengers and crew members. In addition to those on board, 29 people on the ground also lost their lives when the aircraft crashed into a residential area, specifically the BJ Medical College Hostel.

Following the crash, Air India established a centralized helpdesk on June 15 to assist families in processing their claims. This single-window system is designed to expedite documentation and initiate compensation procedures efficiently. The airline has also assigned at least one caregiver to each affected family to provide personalized assistance and support. Over 400 family members have arrived in Ahmedabad and are being assisted by Air India teams on the ground.

Air India has also extended its outreach to those injured and the families of individuals who lost their lives on the ground as a result of the crash. The airline has deployed a team of psychologists and doctors in Ahmedabad to offer trauma counseling and psychological support to those impacted by the tragedy. Furthermore, the airline is providing comprehensive financial assistance to cover travel, accommodation, medical, and funeral expenses, addressing any additional needs that may arise.

The legal framework governing compensation in such aviation disasters is primarily based on the Montreal Convention of 1999, to which India is a signatory. This convention mandates a minimum compensation level for victims of international air disasters, setting the legal framework for determining damages. Under Article 21 of the Montreal Convention, the airline is strictly liable for damages up to 151,880 Special Drawing Rights (SDRs) per deceased passenger, regardless of fault. At current exchange rates, this translates to approximately ₹1.85 crore per victim. Some interpretations place the minimum compensation slightly lower, at 128,821 SDRs, or approximately ₹1.5 crore.

Claimant lawyers are advising relatives of the victims not to rush into any decisions regarding compensation, emphasizing the importance of understanding their full legal rights. They stress that while it is too early to determine the causes of the crash, a thorough investigation is essential to establish the facts.

In addition to the compensation provided under the Montreal Convention, families in India may also file claims under the Consumer Protection Act, 2019, particularly if service deficiencies, such as pilot error, mechanical failure, or poor maintenance, are suspected.