Air India has strongly denied accusations that it pressured families of those who died in the AI-171 crash to fill out forms disclosing financial dependence on the deceased, allegedly in an attempt to reduce compensation. The airline described such claims as &ldquo;unsubstantiated and inaccurate&rdquo; and maintained that its focus remains on ensuring support and timely financial relief for the affected families.
The allegations surfaced following reports that bereaved families were asked to submit detailed personal and financial information and were led to believe that doing so was mandatory to receive interim compensation. The crash, which occurred on June 12 in Ahmedabad, resulted in the deaths of 261 people and has since drawn attention to Air India&rsquo;s handling of post-accident procedures.
&ldquo;It has come to our notice that allegations have been made against the company, claiming that families of the deceased in the AI-171 accident are being forced to sign papers disclosing their financial dependency on the deceased, in an attempt to slash compensation payments,&rdquo; the airline stated.&nbsp;
It emphasised that such forms were necessary to identify eligible claimants and allow compensation to be processed swiftly.
Air India clarified that the interim compensation&mdash;referred to also as advance compensation&mdash;was designed to help families meet urgent financial needs. Initial payments, the airline noted, were disbursed within days of the tragedy. However, it argued that some level of information collection is essential to prevent payments being misdirected, explaining that the questionnaire includes a &ldquo;yes&rdquo; or &ldquo;no&rdquo; question on whether a person was financially dependent on the deceased.
A facilitation centre was set up on June 15 at the Taj Skyline Hotel in Ahmedabad to help families access and complete the questionnaire. According to Air India, families could either visit the centre or request the form by email. Airline staff at the centre explained the form&rsquo;s contents and, on request, provided copies of completed submissions. The airline stressed that filling out the questionnaire at the centre was not mandatory and that some families chose to complete and return the forms later via email.
In its detailed statement, Air India reiterated that no visits were made to victims&rsquo; homes for the sole purpose of collecting the questionnaires. It also stated that certain documents filled out at hospitals and morgues were unrelated to compensation procedures, and in some cases were necessary for official records only.
So far, interim compensation has been issued to 47 families, with documentation verified for 55 more. The airline said it is actively working with the remaining families or their representatives to expedite the payment process. As part of the Tata Group, Air India added that it remains committed to acting with &ldquo;integrity and responsibility&rdquo; during this difficult period.
Alongside legal compensation, the Tata Group has announced a separate voluntary ex-gratia payment of Rs 1 crore (about &pound;85,000) for each family. A dedicated trust with a fund of Rs 500 crore (approximately &pound;43 million) is being created to manage these payments and support the families&rsquo; long-term needs. &ldquo;These families will forever be part of the Tata family,&rdquo; the airline said, describing the initiative as entirely voluntary and in addition to the compensation Air India is legally obligated to provide.
Despite Air India&rsquo;s defence, Peter Neenan, a partner at UK-based law firm Stewarts and a specialist in aviation disaster litigation, has publicly criticised the airline&rsquo;s approach. He claimed that grieving families were left in overheated, crowded rooms and told to complete complex legal forms without legal assistance or clear guidance. Neenan, who has previously worked on major cases like MH17 and MH370, accused the airline of misleading the victims&rsquo; families.
&ldquo;Families were made to believe they wouldn&rsquo;t receive compensation without these forms. That&rsquo;s false, and it&rsquo;s unethical,&rdquo; said Neenan. He added that the questionnaire included legally sensitive questions about financial dependence that, if answered without legal advice, could affect future compensation claims significantly.&nbsp;
&ldquo;These are questions with serious legal implications,&rdquo; he said. &ldquo;Without representation, families could unknowingly limit the compensation they&rsquo;re legally entitled to, potentially costing them millions.&rdquo;
Neenan further alleged that Air India representatives contacted some families at their residences urging them to complete the forms quickly, a claim Air India has flatly denied.
In response, the airline has urged the public and media to avoid spreading misinformation and to understand that the purpose of its procedures is to ensure proper and timely assistance to those most in need. A spokesperson reiterated: &ldquo;We are doing everything we can to ensure compensation is processed quickly and smoothly.&rdquo;
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Air India rejects claims it pressured victims' families to disclose finances for compensation.

Air India Denies Coercion Over Crash Compensation

Air India rejects claims it pressured victims' families to disclose finances for compensation.

July 4, 2025 | 20:33 IST