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
Correct answer
D
Neither 1 nor 2
Explanation
Aviation hull insurance covers physical loss of or damage to the aircraft itself, including its body, engines and on-board equipment. Under the Montreal Convention (1999), to which India acceded in 2009, airlines are strictly liable for passenger death or injury up to a set limit, so families need not prove fault to claim it. Both statements are correct.
InsuranceAviation insurance and liabilityHull insuranceMontreal Convention 1999Strict liabilityAirline liabilityAviation