Bias? 72 lakh for air crash; 4 lakh for rail mishap

New Delhi: There is shocking elitism by the Government when it comes to providing compensation for disaster victims. While Rs 4 lakh is paid if some one dies in a train accident, an air crash victim gets Rs 72 lakh.
Civil Aviation Minister Praful Patel says the claims of victims of the air tragedy can go up to Rs 72 lakh, which is 18 times more than what the families of those killed in the Jhargram train tragedy will be entitled to.
The huge difference is because the amended Air Carriage Act 1971 imposes strict liability on the carrier who in turn tie up with insurance companies.
"The amount of compensation payable is the measure of the loss sustained by the members of the family and particularly the pecuniary loss sustained by the members of the family as a result of the death," says H D Nanavati, Partner, Mulla and Mulla and Craigie Blunt & Caroe, who are the legal advisors to Air India Express.
But the Railways compensation is governed by the India Railways Act 1989 with the Railways paying from its own budget. Railways had a short-lived tie up with insurance companies and decided not to review the contract after 2007. Approximately, 2 crore people travel each day by train and given the volumes, getting insurance companies in should not be difficult. Additionally, Railways also compensate passengers when there's a blast or rioting.
02/06/10 Rupashree Nanda Rupashree Nanda/CNN-IBN/IBN Live

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Categories: Safety Jun 2010