Friday 04 / July / 2025
New Delhi: Air India on Friday denied allegations of coercing families of victims of the AI-171 accident into signing documents about their financial dependency on the deceased to reduce compensation payouts.
In a detailed statement, the airline called the claims "unsubstantiated and inaccurate."
The controversy surfaced following reports that some of the bereaved families were being compelled to disclose financial ties to their deceased loved ones--allegedly as a prerequisite for receiving compensation.
However, the airlines clarified that the request for such information was a part of a standard process to ensure that interim compensation reached the rightful beneficiaries promptly.
In an official statement, the airlines stated, "It has come to our notice that allegations have been made against the company claiming that families of the deceased in the AI-171 accident are being forced to sign papers disclosing their financial dependency on the deceased, in an attempt to slash compensation payments."
"Efforts are being made by the airlines to process the payment of the interim compensation (also referred to as advance compensation) as soon as possible, to meet the immediate financial needs of affected family members, with the first payments having been made within days of the accident. However, Air India cannot process these payments in an information vacuum," it added.
"To facilitate payments, the airlines have sought basic information to establish family relationships to ensure that the advance payments are received by those entitled to them. Whilst the questionnaire does ask family members to indicate with a "yes" or "no" as to whether they are "financially dependent" on the deceased, the airline believes that the process is entirely fair and necessary in order to process the payments to those most in need of assistance. Starting June 15, a Facilitation Centre was established by the airline at the Taj Skyline hotel in Ahmedabad, where the questionnaire relating to interim compensation was made available," it said.
"In addition, families were sent communications informing them that the questionnaire was also available over e-mail, if families did not wish to visit the Centre. Air India staff present at the Centre explained the elements of the questionnaire to family members. There is no requirement for family members to complete the questionnaire at the Centre, and several families have chosen to complete the questionnaire at their convenience and submit it over e-mail. Families who chose to complete the questionnaire at the Centre were provided with copies of their submissions at their request, " the airline further said.
The airlines further stated that families of the victims, in addition to raising questions to the staff of the airlines, were also free to seek any legal advice if needed.
Furthermore, the airlines had mentioned that the forms being filled by the bereaved families at the hospitals or morgues were completely unconnected with the compensation. However, some forms have also been filled out for official records.
"No visits have been made by the airlines to the residences of the families solely to fill up the questionnaires connected to the interim compensation or for any other purposes. Additionally, an interim compensation has been disbursed to the 47 families so far, and the airline also remains in active dialogue to expedite the release of funds to the rest of the bereaved families. The documents relating to the rest 55 individuals have also been verified, and interim compensation is being released progressively to their families. We continue to be in dialogue with other families of the passengers and those deceased at the accident site, or their authorised representatives, to release the compensation at the earliest. As a part of the Tata Group, the airline upholds core values of integrity and responsibility and remains committed to serving the community, especially during challenging times," Air India said.
"In addition to any compensation that will be provided by Air India, the Tata Group has announced a voluntary ex-gratia payment of Rs 1 crore or approximately GBP 85,000 to the families of each of the deceased. A trust with a corpus of around Rs 500 crore or approximately GBP 43 million is being set up to manage and disburse this ex-gratia amount and provide long-term assistance to the families. These families will forever be part of the Tata family. All these efforts are voluntary and in addition to any compensation payable by Air India under law," the airline said.
Additionally, Air India has also urged the public to be cautious of any misinformation and avoid the misinterpretation of facts.
