New Delhi: Air India has started the final compensation process to families of those who died in the tragic AI-171 plane crash on June 12, 2025 in which a total 260 people including 241 passengers died. Sources told Times Now that, in addition to the Rs 25 lakh compensation previously announced by Air India, families will receive differing amounts as final compensation, depending on individual circumstances. Air India had already disbursed Rs 25 lakh to most families by the end of December 2025, except in a few cases where documentation is still pending.In a statement issued by Air India, it said, "Air India wholeheartedly understands that monetary compensation cannot make up for the loss of a loved one. At the same time, getting more clarity
about final compensation is an important moment for the families affected by this tragic incident."
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Air India Shares Details of Compensation to AI-171 Victims
Following initial interim payments of Rs 25 lakh to families of the deceased, and with the process of ex-gratia payment of Rs 1 crore from AI-171 Memorial and Welfare Trust being underway, Air India has initiated the final compensation process. We have ensured that the final compensation being offered to families is fair and in accordance with the law. The information about this has been shared in a transparent, compassionate way with the affected families," the statement added.Following recognised industry standards, compensation payments are made on a “full and final” basis in order to provide a conclusion. While we cannot discuss specific cases, the amounts offered to each family have been calculated using the applicable legal framework and differs depending upon individual circumstances, it said.
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Air India Says It Has Been Transparent in Providing Compensation
Families agreeing to receive final compensation are requested to confirm that they have no future claims against Air India or anyone else, including original equipment manufacturers, airport, Government agencies. This particular aspect is important in order to ensure that the process is indeed final, and to prevent Air India from receiving any direct or indirect claims in the future. We have been transparent in our communication to families, suggesting options, including seeking legal advice before taking a final decision, Air India mentioned.Air India remains committed to doing everything we can to support every impacted family as they navigate through this difficult process, the airline added.