'₹1.8 Crore Cover, ₹18 Lakh Upfront': Your Flight Ticket Does More Than Just Get You Abroad

Every clip you committee an world formation from India, you're automatically insured for ₹1.8 crore—even if you ne'er signed a shape aliases paid a premium. Thanks to a little-known world pact called nan Montreal Convention, your hose is legally required to screen you, nary questions asked.

“You didn’t opt in. You didn’t salary extra. It’s built into nan costs of your ticket,” writes IIM alumnus Lokesh Ahuja successful a caller LinkedIn station that breaks down nan specifications of nan pact India signed successful 2009.

The Montreal Convention mandates that each world airlines compensate passengers—or their families—up to 151,880 Special Drawing Rights (about ₹1.8 crore) successful nan arena of decease aliases injury. Critically, there’s nary request to beryllium fault. Airlines must besides make an beforehand payout of ₹18 lakh wrong days to thief pinch emergency costs.

What astir passengers don’t recognize is nan sheer standard and complexity of nan strategy backing that coverage. “Indian airlines walk millions connected this,” Ahuja notes. Air India unsocial pays astir $25–30 cardinal annually successful security premiums.

Behind nan scenes, nan consequence is passed connected to world reinsurers for illustration Lloyd’s of London, Munich Re, and Berkshire Hathaway. “Because erstwhile ₹1,200 crore is connected nan line, it’s not conscionable India paying. The world chips in,” Ahuja adds.

Even successful cases of craft defects—such arsenic issues traced backmost to manufacturers for illustration Boeing aliases Airbus—the load falls first connected nan airline. Only later tin they writer nan shaper to retrieve costs.

There are limits, though. The pact doesn’t screen hose unit aliases home passengers flying wrong India. And while ₹1.8 crore is nan modular payout, families tin writer for much if nan hose is proven negligent—though that way requires ineligible action and impervious of fault.

Still, for millions of Indian world flyers each year, nan pact offers bid of mind baked into each ticket—quietly doing nan occupation of insurance, moreover if fewer cognize it exists.

Published on: Jun 17, 2025 9:03 AM IST