Worried About Lost Baggage, Delays On International Flights? Here's All You Need To Know About ICAO's New Compensation Rules

Travellers will soon benefit from higher compensation limits for international flights after the International Civil Aviation Organization (ICAO) announced that the Montreal Convention liability limits for death, injury, delays, baggage and cargo issues will increase on December 28, 2024. 

Liability limits are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. For indicative purposes, 1 SDR was valued at USD 1.33318 on October 18, 2024. The upper limit for compensation in the event of death has increased from 128,821 SDR to 151,880 SDR. In case of international flights to/from India, this is an increase from INR 1.4 crore to INR 1.7 crore, based on current rates.

The limit for delay in passenger transport will rise from 5,346 SDRs to 6,303 SDRs (about INR 706,202). The limit for destruction, loss, damage or delay of baggage will increase from 1,288 SDRs to 1,519 SDRs (about INR 168,143).

Formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, the Montreal Convention 1999 or MC99, established a comprehensive and unified framework for the international carriage of passengers, baggage and cargo by air, introducing several elements to balance the interests of travellers and the shippers of cargo and the aviation industry.  

The revision comes as part of the Convention's built-in review mechanism, which adjusts for inflation every five years. The revision pertains solely to the upper limit for compensation payable by airlines and is not an indicator of the actual compensation the next of kin might receive in the event of death.

With the new compensation structure, passengers can expect better protection and more comprehensive support in cases of mishaps. However, understanding the intricacies of airline obligations and the legal frameworks involved remains crucial for navigating these situations effectively.

(With inputs from multiple news reports)