As per the new amendment from Indian government that is approved by president, the airlines in India have to abide by the standard compensation standards. As per the new Carriage Air Act, the liability of airlines is limited and they need to provide the compensation to passengers as per Montreal Convention. With this new amendment, the Indian airlines now have clear guidance to calculate the compensation for any loss and damage caused to passenger. The amount will be calculated on the base of Special Drawing Rights (SDR) that is valued as one SDR is equal to Rs. 93.27.
This global standard of compensation will definitely improve the passenger experience and will help them to get right compensation of their loss despite of the value of their currency. The amendment also clearly states that in case of death or bodily injury, the compensation will be 113,100 SDR and damage caused due to delays will be 4,694 SDR. Further, for lost, delayed or damaged baggage will worth to be 1,131 SDR. Thus, after this new amendment for compensation, airlines have clear understanding of the compensation level and are very helpful in removing any dispute between airline and passenger.