Page 26 - Insurance Times April 2019

Claims Management According to The Countries like Indonesia, Iran, and others have NUL
rectified their Montreal Convention Treaty. They follow the
International Convention:- Provision of the Warsaw Convention.

On 12th October 1929 a number of countries decided to have
a regulations an aircraft operators Legal Liability to Liability of Air Lines:-
Passengers, their baggage and air cargo. On 12th October
1929 in the capital of Poland Warsaw a convention was signed According to Article 17 of the Montreal Convention
initially by 23 countries followed by over hundred countries. Compensation can be claimed for death or bodily injuries
if the accident took place on board the Aircraft or in course
of operations of embankment and dismemberment or in
The Convention for the Unification of Certain Rules relating
event of Air Crash.
to International Carriage by Air – the so called WARSAW
CONVENTION become the basis for claims management
after an air crash causing serious injuries’ to passengers of The per person limit of Legal liability of Airlines to Air
Passengers are as per SDR – Special Drawing Rights
various nationalities.
according to Article 17.
The compensations limits of US$ 10,000 per person was
increased to US$ 20,000 per person by 1955. Americans SDR is converted into Foreign Exchange Rates of currencies
required a higher limits of US$ 75,000 per person. of their four countries viz. Euro – YEN – U. K Fstg and US$.
The rates of exchange are as prevailing on the date of
payment according to the applicable imfis Rates of Exchange
Further developments on the provision of the Warsaw
Convention were updated and replaced by the Hague on the date of Payment.
Protocol in 1995. The Guadalajara Supplementary Convention
in 1961, and the Guatemala Convention of 1971. SDR 113,100 was equal to Malaysian Ringet 572,000 when
Malaysian Air Lines MH 370 flight from Kuala Lumpur to
Beijing went missing.
Finally in 1999 the MV99 – The Montreal Convention Treaty
was signed by member states of ICAO – The International An Air Line has to make Advance Interim Payment of Claim
Civil Aviation Organization.
soonest possible and then adjust the Sums with Final
Amounts of Compensations.
The Montreal Convention Treaty signatory’s countries
recognized the necessities for codification, Consolidation, The Air Passengers Families can claim the Compensation
Modernization and Harmonious agreements for the WITHIN 24 MONTHS from the date of accidents
protection of the interests of Air Passengers to fix Air Lines
Legal Liability to Air Passengers with realistic and reasonable The jurisdiction applicable for Legal suits can be…..
levels of Financial Compensation. The Crew Members are
- The Country of Domicile of the Air Line
covered not by the Montreal Convention but by Worker’s
Compensation Agreements between Crew Members and Or – The Head Office of Air Lines Business.
their employers – Air Line Operators.
Thus Legal Liability Base for Air Passengers is the limits fixed
by the Montreal Convention. Again International Passengers
from USA – Canada – Europe – Japan – China – Australia –
New Zealand, India and all Afro Asian Latin American
countries may book their Air Tickets from Air Lines booking
offices in various cities of various countries. The
International air Passengers Nationality enables them to
claim levels of compensation Limits as per their
jurisdictions.

The Montreal Convention Treaty was signed on 28th May
1999 by 132 Countries + European Union. The Treaty
becomes effective from 4th November 2003.

26 The Insurance Times, April 2019