Air Carriers will now have to pay according to the latest International standards, based on the Montreal Convention. The convention is a 1999 international treaty that supervises the airline liability and compensation.
For instance, for baggage loss, the maximum compensation to be paid will be Rs 90,000 rather than Rs 85,503. In case of flight delays, the compensation has been raised from Rs 3.5 lakhs to Rs 6 lakhs. In case of accidental death, the compensation to be paid will be Rs 90 lakh than Rs 85.5 lakh.
In the current year, the International Civil Aviation Organization reviewed the limits of liability for the first time as per the accumulated rate of inflation. The Indian Act has to be amended to bring in the new rates accordingly.