New Delhi (Gurpreet Singh): The Government of India has significantly enhanced the compensation limits for air passengers in cases of death, bodily injury, flight delays, and baggage loss. Notified by the Ministry of Civil Aviation on April 1, 2026, the new rules update the liability limits under the Third Schedule of the Carriage by Air Act, 1972. These changes have been made effective retrospectively from December 28, 2024, ensuring that any passenger who suffered a loss on or after that date is eligible for the higher claims.
The revised limits are denominated in Special Drawing Rights (SDR), an international reserve asset created by the IMF. Because the value of SDR fluctuates, the following rupee equivalents are approximate and based on current exchange rates at the time of the notification.
Revised Compensation Limits for 2026:
The maximum compensation for death or bodily injury to a passenger has been raised from 1,28,821 SDR to 1,51,880 SDR. This represents an increase of approximately 17.9 per cent, moving the cap from roughly ₹1.43 crore to nearly ₹1.69 crore per passenger. This is a guaranteed limit that airlines are legally required to pay in such tragic exigencies.
For losses suffered due to flight delays, the compensation ceiling has seen an increase from 5,346 SDR to 6,303 SDR. In Indian currency, this translates to a rise from approximately ₹5.95 lakh to nearly ₹7 lakh. These rules aim to hold airlines more accountable for significant scheduling disruptions that result in financial or personal loss for travellers.
In the event of checked-in or cabin baggage being lost, damaged, or delayed, the liability limit has been increased from 1,288 SDR to 1,519 SDR. This moves the approximate compensation range from ₹1.43 lakh to around ₹1.69 lakh per passenger. Additionally, the compensation for lost or damaged air cargo has been raised from 22 SDR to 26 SDR per kilogram.
These updates mark the first major revision since March 2020 and are intended to align Indian aviation liability with global standards. By making the rules retrospective to December 2024, the government has provided a safety net for those affected by recent aviation incidents, ensuring they are compensated at the newly established benchmarks.
