Indonesia to raise airline compensation liability

THE INDONESIAN Ministry of Transportation is planning to increase the compensation limit for deaths caused by plane accidents from 200 million rupiah (US$23,500) to 1.2 billion rupiah per person.

Minister of Transportation, Freddy Numberi, was quoted by Bisnis Indonesia as saying that the increment was to bring Indonesian carriers in line with international compensation standards, which can reach US$100,000 per person on average.

Numberi said airlines would have to absorb the heightened insurance premium, which is on top of the state-owned Jasa Raharja insurance already incorporated in ticket prices.

Meanwhile, Numberi is due to issue a ministerial decree on the Responsibility of Air Transportation Operators, which will stipulate that airlines have to extend their insurance policies to cover delays in compensation.

Source - http://ttgasia