Prelims 2026 · Economy · Question 96
Which of the following statements about insurance in aviation sector is/are correct ?<br/><br/>1. 'Aviation Hull Insurance' covers the physical aircraft, including the body, engine, and on-board equipment.<br/>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.<br/><br/>Select the answer using the code given below :<br/>
Answer
Both 1 and 2
1 is correct: hull insurance covers physical damage/loss to the aircraft itself, including engines/parts/equipment. 2 is also correct in substance: India is a party to the 1999 Montreal Convention, which now has over 130 parties; it creates strict no-fault liability for passenger death/injury up to the treaty limit, so the claimant need not first prove airline fault. Hence both statements are correct.