UPSC Previous Year Question | Prelims GS | 2026

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:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer

Correct Answer

1 only

Explanation

Aviation Hull Insurance covers physical loss of or damage to the aircraft itself, including relevant components and onboard equipment, so statement 1 is correct. Statement 2 is incorrect because the Montreal Convention does not make airlines unconditionally liable for every death irrespective of circumstances; its liability framework contains specific rules, limits and circumstances, including a two-tier system for passenger injury or death.

Topics: aviation, economy, insurance, international law