On June 12, 2025, a tragic Air India crash in Ahmedabad took many lives. Since then, many rumors including a number have dominated headlines and WhatsApp forwards: ₹1.25 crore per family as compensation.
But behind that figure lies a more complex story- one involving two different payouts, multiple stakeholders, and ongoing compensation processes.
What sparked the ₹1.25 crore buzz?
In the days following the accident, several media outlets reported that families of the deceased would receive ₹1.25 crore. The figure wasn’t entirely wrong, but it didn’t reflect how the compensation is structured.
The amount being referenced is actually a combination of two independent contributions:
- An ex-gratia payment by Tata Sons
- An interim compensation by Air India
Both serve different purposes – and follow different procedures.
Tata Sons: A Gesture of Support
Tata Sons, which owns Air India, announced an ex-gratia payment of ₹1 crore to the next of kin of each deceased.
The group is establishing a ₹500 crore trust aimed at providing long-term support to the affected families.
This gesture, while not legally required, has been described as a humanitarian effort during a moment of national tragedy.
Air India: Interim Relief, Not Final Compensation
Air India separately began disbursing ₹25 lakh as interim compensation to affected families.
This amount is an advance, meant to help families with immediate needs. It’s not the final word on compensation, in fact, it will eventually be adjusted against any final amount once the compensation process concludes.
What will decide final compensation?
The ultimate amount each family receives will be determined under the Montreal Convention (1999) – an international treaty governing compensation in aviation accidents.
Under this framework, factors like the victim’s age, occupation, and financial dependents are taken into account. The process for this is currently ongoing.
Were families forced to sign forms?
Allegations surfaced that families were made to fill out forms under distress, in uncomfortable settings.
In reality, Air India clarified that it had set up a Facilitation Centre at the Taj Skyline Hotel in Ahmedabad — and that families also had the option to complete forms via email.
The forms asked for essential information like proof of relationship and financial dependence, standard requirements for initiating any compensation process. Families are also free to seek legal counsel.
What’s the status as of now?
According to Air India, as of July 2:
- 47 families have received the ₹25 lakh interim payment
- 55 more are in the pipeline, with documentation verified and payments in progress
The disbursal is ongoing, and the final legal compensation will follow once assessments are complete.
Why This Matters?
The compensation process after an aviation disaster is always emotionally and legally complex. But in the age of fast-moving headlines, nuance often gets lost in WhatsApp forwards.
What’s clear is this:
The ₹1.25 crore is not a flat cheque from Air India.
For the families involved, the support is essential.
For the public, understanding of the process is just as important.
At The Logical Indian, Fact Check isn’t a label, it’s a responsibility.
In moments of crisis and confusion, we remain committed to checking what’s said and standing by what’s true.
