Two months after the disappearance of the plane and its 239 passengers and crew, experts are pointing to International Civil Aviation Organisation (ICAO) rules - fixing minimum compensation at about US$175,000 per head - as the likely minimum. Malaysian aviation lawyer Jeremy James says: ‘On the surface, (Malaysia Airlines) is responsible.’ The burden of proof lies with the carrier to clear its name, he adds. But this could be difficult since the plane has never been found. 

US$million or more?

Alan Tan, professor of aviation law at the National University of Singapore, said: ‘When there is no cause identified, it is hard to see how the airline has or has not shown the absence of fault’.  Families may be able to negotiate higher rates than the ICAO rules, partly depending on the jurisdiction in which claims are brought and on the nationalities of the missing people. Paul Stephen Dempsey, director of the Institute of Air and Space Law at McGill University in Canada, said: ‘In the US, settlements usually are in the $1 million-$3 million range. For Malaysians or Chinese, salaries are lower, and hence, recoveries will be lower.’ 

Role of insurer

However, settlements are most likely to happen before cases getting to court. German insurer Allianz is the lead insurer to Malaysia Airlines and is likely to encourage a settlement with the terms being kept private. Source: The Economic Times