The bill cleared by Parliament increases the airline's liability limit for damage in case of death or bodily injury to more than a crore. (Representational photo)
Highlights
- Airlines to pay passengers more for losing baggage, exceptional delays
- Airlines will be obliged to compensate passengers at global rates
- Liability limit for damage in case of death to be raised to over a crore
Remember when you sat fuming at an airport because your flight was delayed by hours?
Well, change, it is a-coming.
Airlines will soon have to compensate passengers more for losing their baggage, injuries caused, or exceptional delays.
The Carriage by Air (Amendment) Bill has been passed by both houses of parliament, which means it will now be sent to President Pranab Mukherjee for sign-off after which it becomes law.
Airlines will then be obliged to compensate passengers at global rates.
To calculate what is due, what seems like a complex formula is used based on Special Drawing Rights or SDR. The currency value of the SDR is based on the market exchange rates of major currencies - US dollar, Euro, Japanese Yen and Pound Sterling.
Based on the latest exchange rates, one SDR is equivalent to around Rs 93.
The bill cleared by parliament increases the airline's liability limit for damage in case of death or bodily injury to more than a crore.
The liability for delays per passenger will increase from 3.86 lakhs to nearly 4.37 lakhs. For damages to bags or luggage that is lost, airlines could have to pay a little over a lakh.
The liability limits are revised once every five years for airlines around the world.