Insurance in aviation sector — UPSC Prelims PYQ 2026
Which of the following statements about insurance in aviation sector is/are correct?
- Aviation Hull Insurance covers physical damage caused by war, hijacking and hostile action.
- Under the Montreal Convention, airlines are liable to pay compensation to passengers irrespective of negligence.
Select the answer using the code given below:
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Explanation
Statement 1 is correct
- Aviation Hull Insurance covers the physical aircraft, including its body, engines, and on-board equipment.
Statement 2 is correct
- Under the Montreal Convention (1999), ratified by over 130 countries including India, airlines are strictly liable to pay compensation to families of deceased passengers regardless of fault.
Answer: (c) Both 1 and 2; Difficulty Level: Medium
