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Tuesday, March 25, 2014

#MH370 Is $175,000 worth compensating victims?


The families got $5000 initially to cope with expenses and travel at a Beijing hotel etc. 

Under an international treaty known as the Montreal Convention, the airline must pay relatives of each deceased passenger an initial sum of around $150,000 to $175,000.

Relatives of victims can also sue for further damages -- unless the airline can prove that it took all necessary measures to prevent a crash or any other incident that prevented passengers from arriving safely.

Liability could also stretch beyond the airline to the plane's manufacturer, Boeing (BA,Fortune 500), if a mechanical flaw is ruled the cause. But that would be difficult to prove if the plane is not recovered.

With files from CNNMoney

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