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I NTERNAT I ONAL COMMERC I AL LAW

11

The Novelties Provided by the Montreal Convention

The Montreal Convention introduces the concept of “the liability of

the carrier without any limits”. According to the Montreal Convention,

which provides for a two-tier compensation system, the first tier is strict

liability up to 100,000 Special Drawing Rights

1

, independent of the fault

of the carrier. The second tier depends on the fault of the carrier, and there

is no limit for the liability.

Furthermore:

In the case of aircraft accidents resulting in the death or injury of

passengers, the carrier will, if required by its national law, make

advance payments without delay to a natural person or persons who

are entitled to claim compensation in order to meet the immediate

economic needs of such persons. Such advance payments do not

constitute a recognition of liability and may be offset against any

amounts subsequently paid as damages by the carrier.

A carrier may be required to furnish evidence that it maintains

adequate insurance covering its liability under the Convention.

An expedited procedure is provided for the payment of

compensations in a short period of time.

The actions for damages, on certain conditions, may be brought

before the courts at the place of destination or where the passenger

has his/her permanent residence.

The passenger, baggage, and cargo documents, which have an

important evidentiary value in compensation actions, are simplified

and updated.

From the Turkish perspective, it is expected that the Montreal

Convention will financially protect passengers/consumers in accidents

that occur during carriages by air between member states.

1 The sums mentioned in terms of Special Drawing Right in the Convention shall be deemed to

refer to the Special Drawing Right as defined by the International Monetary Fund. Conversion

of the sums into national currencies shall, in case of judicial proceedings, be made according to

the value of such currencies in terms of the Special Drawing Right at the date of the judgement.

The value of a national currency, in terms of the Special Drawing Right, of a State Party which

is a Member of the International Monetary Fund, shall be calculated in accordance with the

method of valuation applied by the International Monetary Fund, in effect at the date of the

judgement, for its operations and transactions. The value of a national currency, in terms of the

Special Drawing Right, of a State Party which is not a Member of the International Monetary

Fund, shall be calculated in a manner determined by that State.