New Delhi, March 11: A bill providing for enhanced compensation to air travellers in case of death, injury, lost baggage or even inordinate delay in flights was passed by Parliament today.

The Carriage by Air (Amendment) Bill was passed in the Lok Sabha on December 2015 and by the Rajya Sabha, with certain amendments, on March 2. The bill, along with the amendments, came back to the Lower House today, and was adopted by a voice vote.

Once it gets the approval of the President and becomes an act, the law will require Indian airlines to pay a compensation amount that is equivalent to the rates paid by their global counterparts.

Under the law, the compensation for death in an air accident will be increased to over Rs 1 crore from almost Rs 89 lakh now. The amount will be calculated on the basis of SDRs (special drawing rights). The bill intends to raise the liability limit for damage in case of death or bodily injury for each person to 1,13,100 SDR from 1,00,000 SDR.

The currency value of the SDR is based on market exchange rates of a basket of major currencies - US dollar, Euro, Japanese Yen and Pound Sterling. Going by the latest exchange rate, one SDR is equivalent to around Rs 93.

The bill will also allow the government to revise the liability limits of airlines in line with the Montreal Convention, which was acceded to by India in May 2009.

Earlier this month, while piloting the bill in the Rajya Sabha, aviation minister Ashok Gajapathi Raju had said it would bring legislative character to compensation for air passengers in line with international practices.

According to the bill, the liability for delay in carriage for each person was proposed to be raised to 4,694 SDR from 4,150 SDR, while the liability in case of destruction, loss, damage or delay of baggage is proposed to be increased to 1,131 SDR from 1,000 SDR.

The liability in case of destruction, loss or delay in relation to the carriage of cargo has been raised to 19 SDR from 17 SDR.

The liability limits are revised once every five years by the International Civil Aviation Organisation on the basis of a determined inflation factor of 13.1 per cent, triggering an adjustment in the limits.