Air India Offering Cash Settlement To Crash Victims' Families In Exchange For Legal Waivers: Report

Air India has reportedly offered cash settlements to families of victims of last year’s devastating Ahmedabad plane crash on the condition that they forgo their right to pursue legal action against the airline and the aircraft manufacturer, according to a report by The Independent.

The crash occurred on June 12, 2025, when Air India’s Boeing 787-8 Dreamliner, operating as flight AI171 to London Gatwick, went down moments after take-off from Ahmedabad in Gujarat.

The aircraft, commanded by Captain Sumeet Sabharwal and co-pilot Captain Clive Kunder, was carrying 242 people. Shortly after departure, it crashed into a medical college hostel and erupted into flames.

In the immediate aftermath of the plane crash, Air India announced an interim compensation

of Rs 2.5 million for the families of each deceased. The airline’s owner, the Tata Group, pledged an additional Rs 10 million per victim.

However, The Independent reported that Air India has since offered further payments, reportedly between Rs 1 million and Rs 2 million, provided families sign an indemnity document relinquishing their right to initiate or participate in legal proceedings related to the crash.

Documents seen by the publication state that families are required to “irrevocably and forever release” any right to sue or make claims in connection with the accident.

One clause cited by the report reads, “We the Releasors agree that all the indemnities contained herein shall remain fully binding, effective and enforceable irrespective of the forum, place, country or jurisdiction in which any such claim, demand, action or proceeding is brought or pursued.”

Ayush Dubey, case manager at Chionuma Law, was quoted by the report as saying, “We oppose this document. It asks families to give up all their legal rights against every party while the investigation is still ongoing. The full facts are not known yet, and it is not clear who is responsible.”

He further said, “Some injured families are still under medical treatment, and their treatment is not even completed, yet they are being asked to give up all future claims. This is unfair.”

LEGAL ACTION IN MULTIPLE JURISDICTIONS

According to the report, several lawsuits have been filed in British courts, including personal injury proceedings in the High Court in London.

James Healy-Pratt, an aviation partner at Keystone Law, was quoted as saying that High Court proceedings have been issued against Air India, though not yet formally served.

“This is against the backdrop of upcoming confidential negotiations in London. Hopefully, the parties will resolve their claims through such dialogue without the need for a trial in the King’s Bench Division of the London High Court,” he said.

Separately, families of four victims have filed a lawsuit in the United States against Boeing and Honeywell, alleging that faulty fuel cutoff switches caused the accident.

An initial investigative report, submitted around 30 days after the crash in line with international regulations, stated that three seconds after take-off, the aircraft’s engine fuel cutoff switches almost simultaneously moved from “run” to “cutoff”, starving the engines of fuel.

SUPREME COURT SEEKS AIR INDIA PROBE DETAILS

Meanwhile, the Supreme Court has asked the Centre to file a brief report detailing the procedural protocol followed in the ongoing investigation by the Aircraft Accident Investigation Board (AAIB).

A bench led by Chief Justice of India Surya Kant was informed that the probe is in its final stages, with some aspects requiring examination abroad.

The court observed that the AAIB’s role is to determine the cause of the crash, not to impute motive, and has listed the matter for further hearing after three weeks.

The Air India plane crash killed a total of 260 people, 241 passengers and crew members on board, and 19 people on the ground.

Among the deceased were 169 Indians, 52 Britons, seven Portuguese nationals, one Canadian and 12 crew members.

Former Gujarat Chief Minister Vijay Rupani was among those who lost their lives.

The lone survivor was Vishwashkumar Ramesh, a British national.