Air India has denied allegations from UK-based Stewarts Law that it forced families of the AI 171 crash victims to disclose financial dependency to get compensation. Over 40 families represented by the UK-based Stewarts Law have accused the airline of coercion and intimidation as they pursue claims related to the Ahmedabad crash in which over 250 people were killed.
"Air India categorically rejects these allegations and refutes them as both unsubstantiated and inaccurate," Air India said in a statement on June 4, adding that "it has come to our notice that allegations have been made against Air India, claiming that families of the deceased in the AI171 accident are being forced to sign papers disclosing their financial dependency to the deceased, in an attempt to slash compensation payments".
The airline clarified that a questionnaire circulated among certain passengers was intended solely to verify familial relationships, ensuring the rightful distribution of interim payments.
"In order to facilitate payments, Air India has sought basic information to establish family relationships to ensure that the advance payments are received by those entitled to them. Family members have been issued with a questionnaire to allow Air India to gather the information required to process compensation payments. This can be submitted in person at our Facilitation Centre at the Taj Skyline hotel in Ahmedabad, or by e-mail, and families have been given time and flexibility to complete these. Air India has certainly not made any unsolicited visits to families’ homes," Air India said.
Senior executives at the airline told Moneycontrol that the airline sent out a form to families of Air India to ascertain identity following the Ahmedabad crash in order to move forward with the process of paying out interim compensation of Rs 25 lakh to families of victims. Executives told Moneycontrol that interim compensation of Rs 25 lakh has been paid out to 47 families while interim compensation for another 55 families is under process and will be rolled out soon.
The airline also clarified that the forms could be submitted either in person or by email and that no uninvited home visits were made. Dedicated support staff have been deployed to assist with funeral arrangements, accommodation and other logistics. According to the airline, interim payments have already been made to 47 families and documents of 55 more are under processing.
According to UK-based law firm Stewarts, which is representing over 40 bereaved families, the airline has been “coercing” families into submitting legally significant financial disclosures before receiving advance compensation.
"This tactic has deeply distressed families already dealing with an immense loss," the firm said.
The allegations come weeks after the June 12 disaster, which claimed 260 lives - 241 on board and 19 on the ground - shortly after the flight took off from Ahmedabad for London Gatwick. It was India’s deadliest aviation incident in nearly 30 years.
Peter Neenan, an aviation lawyer and partner at UK law firm Stewarts, has represented families in a number of large airline disasters around the world, including the high-profile MH17 and MH370 crashes.
He claimed the airline’s treatment of grief-stricken families could save it at least £100m by under-compensating families. “This is the real horror of what they’re potentially looking to do,” he said, calling for an investigation into the airline’s behaviour.
Neenan said that relatives arriving to identify their loved ones’ remains in the days after the crash on 12 June were put in a crowded, dark room in the intense heat with other bereaved families, and told to fill out documentation and a complicated questionnaire asking for important financial information.
The families were not given any warning, legal advice or a copy of the documents, he said. Some families have told him that Air India officials went round to their homes and asked why they had not yet completed the forms.
Neenan claimed families were falsely told they would not receive any payments unless they completed the forms, even though airlines are required under international law to make immediate advance payments to families entitled to compensation. Families are not required to do anything more than provide proof of identity and sign a receipt.
The law firm added that it will be meeting Indian-based clients and families in Ahmedabad on July 10 and 11.
"Families who would like to attend our briefing should reach out to Sarah or Peter; or for those families preferring to speak Gujarati, Bhargav Pandya from our partner firm Nanavati & Nanavati at bppandya@nanavati.co.in / +91 9925900701," the law firm said in a statement.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
