The aircraft owners, operators or aircraft managers have legal liability towards carriage of persons as passengers in the aircraft and liability is extended to cover baggage on board. It is also known as passenger transportation (pay airfare & travel) liability. 

An insurance policy provides compensation to the passenger who sustains bodily injury or death caused due to an unforeseen or sudden accident while using of an aircraft.

Insurance cover in the policy shall be that “Insurance company shall pay the insured all sum which the insured became legally liable to pay as compensatory damages, including cost and expenses,” provided that, there has been sudden and unforeseen occurrence and it caused bodily injuries or death because of using the aircraft, that bodily injury or death and loss or damage to the personal effects or articles of the passenger is arising out of accident to the aircraft, and an evidence is summarized on record, that airline operational crews failed to adhere either the international and national compliances or both, resulted accident.