Q96.
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 :
Answer
C
Explanation
Aviation hull insurance covers physical loss or damage to the aircraft and its equipment. Under the Montreal Convention, carrier liability for passenger death/injury operates through a strict-liability regime up to the applicable SDR threshold, with additional rules beyond that threshold. Thus both statements are treated as correct → C.