Higher compensation for flight delays, accidents and baggage loss for air passengers

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Air passengers will now get higher compensation for accidents, flight delays and baggage losses or damages after President Pranab Mukherjee approves the Carriage by Air (Amendment) Bill, which was passed by both Houses of the parliament last week.

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Under the new arrangement, a passenger will now get Rs 1.05 crore in the event of death or bodily injury. This was Rs 93 lakh previously.

Likewise, for destruction, loss or delay in baggage, the compensation money will go up to Rs 1.05 lakh from the existing Rs 93,000.

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This amount will be calculated on the basis of what’s known as Special Drawing Rights, whose currency value is based on the market exchange rates of a basket of major international currencies including the US dollar, euro, Japanese yen and British pound.

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The compensation is calculated in line with the Montreal Concention, which India became party to in May 2009.

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