Economy2026
Which of the following statements about insurance in aviation sector is/are correct?
- 'Aviation Hull Insurance' covers the physical aircraft, including the body, engine, and on-board equipment.
- Under the Montreal Convention, adopted in 1999 by over 130 countries, including India, airlines are strictly liable to pay compensation to the family/nominee of every deceased passenger without requiring the family to prove fault.
Select the answer using the code given below:
Explanation
The correct option is both 1 and 2.
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'Aviation Hull Insurance' accurately refers to the coverage of physical damage to the aircraft, encompassing the main structure, engine, and onboard equipment, which underscores the sector's need for comprehensive risk management due to the high value of aviation assets.
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The Montreal Convention's stipulation of strict liability for airlines in cases of passenger fatalities emphasizes the evolving norms in international aviation law aimed at enhancing consumer protection and ensuring that families of deceased passengers are compensated without the burden of proving negligence. This reflects broader principles of justice and accountability within the aviation industry's regulatory framework.