UPSC CSE Prelims
Question 68
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:
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: Aviation hull insurance protects the aircraft itself; the Montreal Convention creates a liability regime for international passenger injury/death including a strict-liability tier.
Statement-wise Analysis:
Statement 1: Correct - Aviation hull policies insure physical damage to the aircraft, engines and equipment subject to policy terms.
Statement 2: Correct - Montreal Convention 1999 establishes carrier liability for passenger death or injury without requiring proof of negligence for the strict-liability tier.
Option-wise Analysis:
A: Incorrect - Omits supported item(s) 2.
B: Incorrect - Omits supported item(s) 1.
C: Correct - This option includes the supported item(s) and excludes the unsupported ones.
D: Incorrect - Omits supported item(s) 1, 2.
Review note: Montreal Convention liability is two-tier: the second tier may involve carrier defences. The statement should not be understood as unlimited automatic payout to any family without applicable claim conditions.