Which of the following statements about insurance in aviation sector is/are correct?
- 'Aviation Hull Insurance' covers the physical aircraft, including the body, engine, and on-board equipment.
- 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:
Correct answer: C
Explanation
Aviation Hull Insurance indemnifies the physical aircraft — fuselage, engines and on-board equipment — against damage or loss (1 correct). The Montreal Convention 1999, ratified by India in 2009 and signed by 130+ states, imposes strict (no-fault) liability on carriers for passenger death or injury up to a defined SDR limit, with higher amounts payable only if the airline cannot disprove negligence (2 correct). Both statements reflect the IRDAI and DGCA framework, so the answer is (c).