Air India is facing accusations of mistreating the families of the victims of the recent Ahmedabad plane crash, with reports emerging that the airline is pressuring them to sign compensation papers that require disclosing their financial dependency on the deceased. This has sparked outrage and concern, as families grapple with immense grief and navigate the complex process of seeking compensation.

The Air India flight AI171, a Boeing 787-8 Dreamliner bound for Gatwick, crashed shortly after takeoff from Ahmedabad on June 12, 2025, killing all but one of the 242 passengers and crew members on board, as well as 29 people on the ground. The incident is considered one of the worst aviation disasters in recent memory. Among the passengers were 53 British citizens.

In the aftermath of the crash, Air India announced an interim compensation of ₹25 lakh (approximately £21,500) for the families of the deceased and the lone survivor to address immediate financial needs. This is in addition to the ₹1 crore (approximately £86,000) compensation announced by Tata Sons, the parent company of Air India.

However, a questionnaire sent by Air India has caused distress among the grieving families. The questionnaire asks recipients to disclose whether they were "financially dependent" on the deceased. It also suggests that the ex-gratia payment would not be made unless the document revealing their financial circumstances is completed. Some families have reported that Indian officials have been pressuring them to sign the papers, warning that they would not be considered for compensation otherwise.

This request for financial information has been perceived as "bullying" and an attempt to reduce compensation payments. Critics argue that the airline is trying to exploit the vulnerability of the families during this difficult time.

Under the Montreal Convention, Air India is liable to pay a minimum compensation of 151,800 Special Drawing Rights (SDRs) for death or serious injury in a crash. With one SDR valued at approximately ₹120, this amounts to ₹1.82 crore per person. This compensation must be paid regardless of who was at fault for the crash. If negligence is proven, additional compensation can be sought. Legal experts say that Air India could face unlimited damages if found negligent under international aviation law.

Legal teams in the US and the UK are preparing to file lawsuits against Boeing in the US and the UK. These lawsuits would be separate from any compensation provided by Tata Sons or Air India. Experts say that courts in these countries are generally more supportive of people filing lawsuits.

Air India has $1.5 billion in liability insurance. In the wake of the crash, the Life Insurance Corporation of India (LIC) announced a series of relaxations in its claim settlement process to assist the families of the victims. Bajaj Allianz Life Insurance has also established a special claims desk to prioritize death and disability claims related to the tragedy.