Montreal Convention, 1999 (MC99)

Context:

The Montreal Convention, 1999 governs the insurance claims for passengers aboard the Air India Boeing 787 Dreamliner that recently crashed, determining compensation for death or injury.

What is the Montreal Convention, 1999 (MC99)?

• An international treaty that sets a modern liability framework for compensating passengers in the event of death or injury during international air travel.
• It replaced the outdated Warsaw Convention system (in place since 1929) with a unified, updated, and globally applicable regime.
• Also provides for the use of electronic documentation for air cargo, reducing costs and improving operational efficiency.

Key Features

• Came into Force: 2003
• Parties: 132 countries (~68% of ICAO member states)
• India’s Accession: Became a signatory in 2009

Liability Provisions under MC99

• Compensation is denominated in Special Drawing Rights (SDR)—an international reserve asset based on a basket of major global currencies.
• Carrier Liability Limit:
  • Up to SDR 113,100 for death or bodily injury per passenger.
• For claims exceeding this limit, airlines must prove that:
  • The damage was not caused by their own negligence, or
  • Was solely due to the actions of a third party.