Air India Faces Heat Over Alleged Forced Closure Of Compensation Claims In AI171 Crash

Air India Faces Heat Over Alleged Forced Closure Of Compensation Claims In AI171 Crash

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Air India has strongly refuted allegations that it pressured families of victims in the June 12 Flight AI171 crash into prematurely signing compensation-related documents. In a detailed statement issued to IndiaToday.in, the airline labeled the accusations as "unsubstantiated and inaccurate," asserting that its procedures are intended to ensure fairness and clarity during an emotionally difficult time.

The controversy erupted after UK-based law firm Stewarts, representing over 40 bereaved families, accused Air India of circulating a detailed questionnaire containing complex legal terms—allegedly without proper explanation—potentially compromising future legal claims. The law firm claims families were being “coerced” into submitting sensitive financial disclosures before receiving advance compensation.

However, Air India clarified that the form was not a waiver but an administrative tool to verify familial relationships for the rightful distribution of interim payments. The airline emphasized that families are under no obligation to submit the forms immediately and that both email and in-person submissions are accepted. “We are giving families all the time and flexibility they need. Our aim is to support them in every way possible,” the statement read.

To date, interim compensation has already been disbursed to 47 families, with documents of 55 others under review. The airline also emphasized that no uninvited home visits have been made by its representatives and that dedicated teams have been deployed to assist with funeral arrangements, accommodation, and travel logistics.

Additionally, the Tata Group, Air India's parent company, announced a voluntary contribution of ₹1 crore per deceased passenger and is establishing a ₹500 crore trust to ensure long-term financial assistance for the affected families.

Despite this, legal tensions continue to mount. Stewarts, in collaboration with Ahmedabad-based Nanavati & Nanavati and US law firms Clifford Law Offices and Kreindler & Kreindler, is preparing claims against Air India, aircraft manufacturer Boeing, and other potentially liable parties.

Peter Neenan, a partner at Stewarts, expressed deep concern: “The questionnaire demands legally significant information, using terminology without explanation. It could later be used against the families. This is not how grieving families should be treated.”

The crash of Flight AI171, which claimed 260 lives—including 241 passengers and crew and 19 people on the ground—was India’s worst aviation tragedy in nearly three decades. The aircraft had departed from Ahmedabad en route to London Gatwick when it crashed minutes after takeoff.

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