Q. Which of the following statements about insurance in aviation sector is/are correct?
1. 'Aviation Hull Insurance' covers the physical aircraft, including the body, engine, and on-board equipment.
2. Under the Montreal Convention, adopted in 1999 by over 130 countries, including India, airlines are strictly liable to pay compensation to the family/nominee of every deceased passenger without requiring the family to prove fault.
Select the answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer : C

Explanation:

Statement 1 is correct: Aviation hull insurance covers the physical aircraft, including its body, engine, and onboard equipment.
Statement 2 is correct: The Montreal Convention establishes a two-tier liability regime. Airlines are automatically liable for proven damages up to 128,821 SDRs without passengers needing to prove fault — covering injury, death, and certain baggage losses. This means families of deceased passengers do not need to prove fault for compensation up to this threshold

Source:

https://www.iata.org/en/programs/passenger/mc99/

https://www.pib.gov.in/newsite/erelcontent.aspx?relid=48665®=3&lang=2