Is insurance included with flight tickets? How much compensation is provided in case of an accident?

Flight Ticket Insurance: Millions of people travel by flight every day. But in case of an accident, what safety measures are in place for passengers, and what are the rules regarding compensation? Here's some important information.

Flight Ticket Insurance: Millions of people travel by flight in India every day. Some fly for work, some for holidays, and others take international flights to travel abroad. Air travel is fast, but it also carries risks. Accidents can happen due to technical faults, bad weather, or human error.

The horrific accident on June 12, 2025, which claimed the lives of 241 people, still shakes people to this day. After such accidents, a question arises in everyone's mind: Do passengers automatically get any insurance when booking a flight ticket? And what are the rules for compensation if an accident occurs? Let's give you complete information about this.

What is Flight Accident Insurance?

Flight accident insurance is essentially a safety cover for accidents that occur during air travel. If an accident happens during a flight, it provides financial assistance to the passenger or their family. This includes situations such as death, permanent disability, and serious injury. Many people are unaware that most airlines already provide basic insurance for passengers, which is included with the ticket.

In addition, many airlines and travel websites also offer the option of separate personal accident insurance when booking tickets. Passengers can choose this option according to their needs. Higher coverage can be obtained by paying a lower premium. If an accident occurs, the claim process is usually initiated by the family or nominee. This involves submitting a death certificate, ticket information, and other necessary documents.

What are the compensation rules for international flights?

If an accident occurs on an international flight, compensation is provided under the Montreal Convention 1999. India is a signatory to this international treaty. Therefore, these rules apply to international flights departing from or arriving at this location. Under this convention, each passenger is entitled to compensation of up to approximately 128,821 Special Drawing Rights (SDRs).

In Indian currency, this amount is approximately 1.4 crore rupees. However, the actual amount depends on the value of the SDR and the prevailing exchange rate at the time. Importantly, for compensation up to this initial limit, the airline does not need to be proven at fault. However, if it is proven that the accident was caused by the airline's negligence, compensation exceeding the stipulated limit may be awarded.

What are the rules for domestic flights?

The Montreal Convention does not directly apply to domestic flights. However, in India, passenger safety is governed by the guidelines of the DGCA (Directorate General of Civil Aviation). Most Indian airlines provide accident coverage to passengers on domestic flights as well. The compensation amount may vary depending on the airline and the insurance policy, but it is generally between approximately 20 lakh rupees and 1 crore rupees.

In many cases, this responsibility is shared between the airline and its insurance company. If the passenger has purchased separate travel insurance while booking the ticket, they may receive additional compensation in addition to the basic coverage. Therefore, it is wise to check the insurance options when booking a flight ticket.