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Knowledge Nugget: Montreal Convention on Civil Aviation
Subject: International Conventions
(Relevance: UPSC has asked questions regarding important conventions, particularly related to the United Nations. In this regard, knowing about the Montreal Convention and International Civil Aviation Organization (ICAO) becomes important for your UPSC exam.)
Why in the news?
In the world’s worst aviation disaster in a decade and the first involving a Boeing 787, a London-bound Air India passenger aircraft with 242 people on board crashed in a residential area shortly after take-off from the Ahmedabad airport on 12th June. The 11-year-old Boeing 787 aircraft—bearing registration VT-ANB—was operating flight AI-171 between Ahmedabad and London Gatwick airport. This is the first wide-body crash for an Indian airline in four decades. It is also the first crash of a Boeing 787 globally.
The Tata Group, which owns the airlines, announced Rs 1 crore compensation to each of the kin of the victims. Air India will have to pay a compensation of around Rs 1.5 crore, as per the Montreal Convention treaty.
Key Takeaways:
1. The Montreal Convention 1999, or MC99, is formally known as the Convention for the Unification of Certain Rules for International Carriage by Air. It was finalised under the aegis of the International Civil Aviation Organization (ICAO). It provides a comprehensive and unified framework for the international carriage of passengers, baggage, and cargo by air, introducing several elements to balance the interests of travelers and the shippers of cargo and the aviation industry.
2. India signed the Montreal Convention on Civil Aviation in 2009 to become its 91st member. The provisions of this convention are implemented through the Carriage by Air (Amendment) Act 2009 in India, which was enacted to cover the international carriage of passengers, baggage, or cargo by airlines.
| International Civil Aviation Organization (ICAO) |
| It is a specialised organisation of the United Nations created through the Chicago Convention (formally known as the Convention on International Civil Aviation) of 1944 to promote safe and orderly growth of international civil aviation throughout the world. According to the official website of ICAO, “on 4 April 1947, upon sufficient ratifications to the Chicago Convention, the provisional aspects of the Provisional ICAO were no longer relevant and it officially became known as ICAO. The first official ICAO Assembly was held in Montreal in May of that year.” On 6 June 1946, Montreal, Canada, was selected as the permanent headquarters of the Organization. |
3. The convention imposes strict penalties on carriers for the death of passengers due to negligence and fixes a higher insurance premium for air disasters occurring on international flights. It sets liability limits for airlines, ensuring fair compensation for consumers in cases of injury, death, delay, baggage and cargo issues. It supersedes all previous international instruments on air carrier liability.
4. As per the Montreal Convention treaty, Air India will have to pay a compensation of around Rs 1.5 crore each to the kin of victims of the plane crash. Air India will get adequate compensation for the lost aircraft from insurance companies.
5. Compensation is calculated using Special Drawing Rights (SDRs), which stood at 128,821 SDRs (approximately USD 1.33 per SDR) as of October 2024. The actual payout will depend on the coverage purchased by Air India.
An Air India plane crashes moments after taking off from the Ahmedabad airport, Thursday. (Express Photo by Bhupendra Rana)
6. According to Article 23 of the Convention, “The sums mentioned in terms of Special Drawing Right in this Convention shall be deemed to refer to the Special Drawing Right as defined by the International Monetary Fund. Conversion of the sums into national currencies shall, in case of judicial proceedings, be made according to the value of such currencies in terms of the Special Drawing Right at the date of the judgement.”
7. The primary insurers for the Air India policy are: Tata AIG General Insurance (lead insurer with over 40 per cent share), ICICI Lombard General Insurance, New India Assurance, and other PSU general insurers. The final bill will be taken by the reinsurers. Air India had paid a premium of $30 million (Rs 257 crore), the same as last year, for insuring over 300 aircraft.
| What is the difference between Insurance and Reinsurance? |
| According to the website of Sbilife, “Insurance is a financial contract where an individual or entity (policyholder) pays a premium to an insurance company in exchange for future financial protection against specific risks. Reinsurance, on the other hand, is a form of insurance purchased by insurance companies themselves. It allows them to share risks associated with their policies with other insurance companies (reinsurers).” |
BEYOND THE NUGGET: Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
1. Union Home Minister Amit Shah said that the temperature in the Air India plane, which crashed in Ahmedabad, was so high due to burning fuel that there was no chance to save the people.
2. This highlights the flammable nature of the aviation turbine fuel (ATF), which is used by airlines. Also, there have been concerns surrounding the carbon emissions from ATF. According to the International Energy Agency, in 2023, aviation accounted for 2.5% of global energy-related CO2 emissions, having grown faster between 2000 and 2019 than rail, road, or shipping. In regard to this, the Indian government has been working on the roadmap for introducing Sustainable aviation fuel (SAF) with ATF for domestic flights.
3. The decision is in line with the mandatory phase of the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which will take effect from 2027. CORSIA, which applies to international flights, would require airlines globally to offset any growth in carbon dioxide emissions beyond the 2020 levels.
4. SAF is a biofuel that is produced from sustainable feedstocks and has chemistry similar to conventional ATF or jet fuel, which is derived from crude oil. This means that existing aircraft engines can easily use the SAF-ATF blend. Using jet fuel blended with SAF is one of the ways through which carriers can keep their emissions under permissible levels.
Post read question
Consider the following statements about the Montreal Convention on Civil Aviation:
1. India signed the Montreal Convention treaty in 2011 to become its 91st member, which was a collaborative effort between ICAO, WTO, and OECD.
2. The convention imposes strict penalties on carriers for the death of passengers due to negligence and fixes a higher insurance premium for air disasters occurring on international flights.
Which of the following statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
(Source: India becomes member of Montreal Convention, Air India plane crash: Victims’ kin may get up to Rs 1.5 cr each as insurance compensation, icao.int)
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The convention imposes strict penalties on carriers for the death of passengers due to negligence and fixes a higher insurance premium for air disasters occurring on international flights. (Representative) 
An Air India plane crashes moments after taking off from the Ahmedabad airport, Thursday. (Express Photo by Bhupendra Rana)
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