Families of more than 105 victims of last year’s Air India Flight AI-171 crash have been advised not to sign the airline’s proposed “full and final” settlement terms, with their counsel urging them to wait for investigation findings before giving up legal rights.
Attorney Chuck N Chionuma, who represents the families, on Friday said the offers require them to release Air India and a wide range of other entities from present and future liability, even as the probe into the fatal crash remains incomplete.
The advice comes a day after Air India formally initiated the final compensation process for families of those killed in the June 12 crash in Ahmedabad, which claimed 260 lives. The move marks a critical stage in the aftermath of one of India’s deadliest aviation disasters in recent years, and has now opened a legal and ethical debate over timing, transparency, and accountability.
Why families are being asked to wait for investigation data
Speaking to news agency ANI, Chionuma said families should hold off until the AIP data is released and the investigation identifies responsibility.
“My advice is not to sign this, but to wait for the AIP data to be released so we know who the culprits are. Then you’ll be able to assess what the real damages are and what you are given before you sign such a document,” he said.
He added that the proposed document applies across jurisdictions and contains sweeping indemnity clauses.
“The document applies to every jurisdiction where any claim is brought. It requires the families to indemnify and hold these companies harmless, regardless of where the claim is brought,” he said.
According to Chionuma, three families have already received the proposed release and settlement terms from Air India and have been advised not to accept them. He described the settlement as problematic on several counts.
“It not only releases Air India from current and future liabilities for the deaths of family members, but it also releases practically everyone in the world, including the airline manufacturers, component manufacturers, aviation operators, and even governmental entities,” he told ANI.
“The liability they are indemnifying against has no limit. To make things even worse, the document also goes as far as requiring the families and other parties to hold Air India harmless against any future claims. It is not advisable for anyone to sign these documents,” he added.
What Air India has offered so far
On Thursday, Air India announced that it had begun the final compensation process for affected families. In a statement, the airline acknowledged that no financial compensation can replace a lost life but said clarity on final payments was an important step for grieving families.
The airline has already paid Rs 25 lakh as interim compensation to the families of the deceased. In addition, ex gratia payments of Rs 1 crore per deceased family are being processed through the AI-171 Memorial and Welfare Trust established by the Tata Group.
Air India said the final compensation offers are calculated individually, are compliant with applicable legal frameworks, and follow standard industry practice. The payments are structured on a “full and final” basis.
As part of the agreement, families who accept the final settlement must confirm that they will not pursue any future claims against Air India or related parties, including airports, original equipment manufacturers, or government agencies.
The airline described the clause as essential to ensure the settlement is conclusive and prevents further direct or indirect claims. It also said families have been advised to seek independent legal counsel and that support options are being provided during the process.
The crash that triggered the dispute
On June 12 last year, Air India flight AI-171, a Boeing 787-8 aircraft, crashed shortly after take-off from Ahmedabad’s Sardar Vallabhbhai Patel International Airport. The accident killed 260 people (229 passengers, 12 crew members and 19 individuals on the ground).
The investigation into the cause of the crash is ongoing.