Year-in-Review: From Survivor to Victims’ Family, People Compensated After Air India Plane Crash
- The Air India Boeing 787 Dreamliner crash in January 2025 was reported as the deadliest aviation disaster of the past decade, claiming 241 lives on board and dozens more on the ground
- Legit.ng revealed that interim compensation was announced for families of victims, the lone survivor, and those affected near the hostel where the plane went down
- The tragedy also triggered far-reaching insurance claims, with liabilities stretching into hundreds of millions of dollars
In 2025, Legit.ng reported extensively on one of the most painful aviation tragedies in recent memory.
The Air India Boeing 787 Dreamliner, travelling from Ahmedabad to London, crashed into a student hostel shortly after takeoff. It was described as the world’s most devastating aviation accident in the past ten years, claiming 241 lives on board and at least 38 on the ground.
Source: Getty Images
Here are three groups of people who were compensated after the disaster.
Plane survivor Ramesh Viswashkumar
Legit.ng reported that the only survivor of the crash, 40-year-old Ramesh Viswashkumar, was expected to receive the same interim compensation as the families of the deceased. Viswashkumar, a British citizen of Indian descent seated in 11A, survived the impact and was hospitalised.
Air India confirmed in January 2025 that he would be granted ₹25 lakh (about £21,000 or €24,500), equivalent to over ₦43.5 million.
This was in addition to the ₹1 crore (around £85,000) support already announced by Tata Sons.
Families of victims
The airline announced that each of the 241 families who lost loved ones would receive interim compensation of ₹25 lakh. In its statement on X, Air India said:
“As part of our continued efforts, Air India will be providing an interim payment of ₹25 lakh, or approximately £21,000, each to the families of the deceased and to the survivor, to help address immediate financial needs. This is in addition to the ₹1 crore, or approximately £85,000, support already announced by Tata Sons.”
This payout, reported in January 2025, brought the total aid package to nearly ₦2.3 billion. Under the Montreal Convention, families were also automatically entitled to Rs 1.75 crore (about €195,000), without needing to prove fault.
Survivors on the ground near the hostel
The crash into the medical college hostel during the lunch hour caused devastation beyond the aircraft itself. At least 38 individuals on the ground lost their lives, while others narrowly escaped. Survivors who were close to the hostel at the time were also covered under the insurance package.
Legit.ng reported that the total insurance liabilities included hostel damage and third-party claims. Ramaswamy Narayanan, chairman of the General Insurance Corporation of India, said the destroyed aircraft alone was expected to cost insurers $125 million (€108.9 million). Legal experts estimated that passenger-related claims could reach $350 million (€305.2 million).
Wider insurance impact
The insurance fallout was described as substantial. While Indian insurers such as Tata AIG and New India Assurance held less than five per cent of the risk, the majority was transferred to global reinsurers, including Lloyd’s of London.
This ensured that compensation extended not only to passengers and their families but also to survivors on the ground, hostel owners, and other third parties affected by the crash.
The Air India tragedy of January 2025 was marked by immense loss and far-reaching consequences. Compensation was reported to have been extended to three groups: the lone survivor, the families of victims, and survivors on the ground near the hostel.
Together, these payouts reflected both humanitarian support and the legal obligations under international aviation law.
Source: Getty Images
Investigators release true last words of Air India pilots
Legit.ng earlier reported that Investigators have disclosed unsettling cockpit audio from Air India Flight 171, uncovering an eerie exchange moments before the jet crashed in India, killing all passengers except one on June 12, 2025.
As the aircraft lifted off from Ahmedabad, both fuel-control switches abruptly shifted to the 'cut-off' position, an action typically reserved for post-landing procedure, causing both engines to lose power.
Seconds later, according to the recovered cockpit audio, one pilot was heard asking, 'Why did you cut off the switches?', to which the other pilot responded, 'I didn't'.
Source: Legit.ng
