Air India Addresses Allegations Regarding AI-171 Compensation Process

Air India has responded to allegations that it coerced families of AI-171 accident victims into signing documents about their financial dependency to reduce compensation payouts. The airline insists that such requests are standard procedure to ensure timely compensation distribution. With a Facilitation Centre established for families and ongoing dialogue to expedite payments, Air India emphasizes its commitment to integrity and support during this challenging time. Additionally, the Tata Group has announced a significant ex-gratia payment to assist the bereaved families. The airline urges the public to be cautious of misinformation surrounding this sensitive issue.
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Air India Addresses Allegations Regarding AI-171 Compensation Process

Air India Responds to Compensation Claims

On Friday, Air India firmly rejected claims that it pressured families of AI-171 accident victims into signing documents regarding their financial dependency on the deceased, which could potentially lower compensation amounts. The airline described these allegations as "unfounded and incorrect."


The issue arose after reports indicated that some grieving families were allegedly being forced to reveal their financial connections to their deceased relatives as a condition for receiving compensation. In response, Air India clarified that this request for information is part of a standard procedure aimed at ensuring that interim compensation is distributed to the rightful beneficiaries without delay. The airline stated, "We have become aware of accusations suggesting that families of the deceased from the AI-171 incident are being coerced into signing documents that disclose their financial dependency on the deceased, purportedly to reduce compensation payouts."


Air India emphasized its commitment to processing interim compensation swiftly to address the immediate financial needs of affected families, with initial payments being made within days of the tragedy. However, the airline noted that it cannot proceed with these payments without necessary information. To facilitate the compensation process, basic details were requested to confirm family relationships, ensuring that advance payments reach those entitled to them. The questionnaire does ask family members to indicate whether they are "financially dependent" on the deceased, which the airline believes is a fair and essential step to assist those in need.


Since June 15, Air India has set up a Facilitation Centre at the Taj Skyline hotel in Ahmedabad, where families can access the questionnaire related to interim compensation. Additionally, families were informed that they could also receive the questionnaire via email if they preferred not to visit the Centre. Staff at the Centre were available to explain the questionnaire's components to family members. It was made clear that there was no obligation for families to complete the questionnaire on-site, and many opted to fill it out at their convenience and submit it electronically.


Families who completed the questionnaire at the Centre were given copies of their submissions upon request. The airline also stated that families were encouraged to ask questions of the airline staff and seek legal advice if necessary. Furthermore, Air India clarified that forms filled out by bereaved families at hospitals or morgues were unrelated to the compensation process, although some were completed for official records.


The airline confirmed that no representatives had visited the homes of families solely to collect information for the interim compensation questionnaire or for any other reason. So far, interim compensation has been distributed to 47 families, and discussions are ongoing to expedite payments to the remaining bereaved families. Documentation for the remaining 55 individuals has been verified, and compensation is being released gradually.


Air India continues to communicate with the families of passengers and those who lost their lives in the accident, or their authorized representatives, to ensure prompt compensation. As part of the Tata Group, the airline is committed to integrity and responsibility, especially during difficult times.


In addition to the compensation provided by Air India, the Tata Group has announced a voluntary ex-gratia payment of Rs 1 crore (approximately GBP 85,000) to each family of the deceased. A trust with a corpus of around Rs 500 crore (approximately GBP 43 million) is being established to manage and distribute this ex-gratia amount, providing long-term support to the families. The Tata Group has expressed that these families will always be considered part of the Tata family.


All these initiatives are voluntary and supplementary to any compensation mandated by law. Air India has also urged the public to be vigilant against misinformation and to avoid misinterpretations of the facts.