Air India has commenced the process for final settlements for the families of victims from the AI-171 plane crash, offering compensation based on individual circumstances. The amounts range from INR 25 lakh to INR 1 crore, reflecting a case-by-case analysis of the losses suffered.

This initiative follows a tragic incident on June 12, 2025, in Ahmedabad, which resulted in the deaths of 260 individuals, including 241 aboard the aircraft and 19 on the ground.

Ongoing Investigations and Initial Payments

The Aircraft Accident Investigation Bureau (AAIB) is expected to release its final report by June 12, 2026. In response to the tragedy, Air India has previously disbursed interim payments of INR 25 lakh to the families of the victims. The airline has also established the AI-171 Memorial and Welfare Trust, which is funded by the Tata Group, to facilitate ex-gratia payments of INR 1 crore per family of the deceased.

Legal Waivers and Settlement Conditions

As part of the settlement procedure, affected families are required to sign legal waivers. This releases Air India and its associated entities from any future claims. The airline has already issued INR 25 lakh to 166 families, with 52 additional families currently in the process of receiving these payments. It’s important to note that the final compensation amount varies for each family, with additional payments of INR 10 lakh available under certain circumstances.

Commitment to Transparency and Support

Air India has emphasized that its compensation offers are fair, adhere to applicable legal regulations, and follow standard industry practices. The payments are designed to be definitive, helping families to find closure after the tragedy. Families accepting the final compensation are required to agree that no future claims will be made against Air India or any associated entities, including manufacturers, airport operators, or government bodies.

Independent Legal Advice and Support Options

The airline has shown its commitment to transparent communication with the bereaved families. It has encouraged them to seek independent legal counsel before finalizing any decisions regarding the settlement. Throughout this difficult process, Air India has also provided various support options for the families, reaffirming its dedication to assisting them during this challenging time.

Investigations Continue Amid Settlement Process

This development occurs amidst reports of differing settlement offers which include additional sums provided in exchange for indemnity waivers. Investigations into the cause of the crash and related legal actions are also ongoing across several jurisdictions. Air India has opted not to comment on specific individual cases, adhering to its established policy to maintain confidentiality.

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