Aircraft that are lost and their debris aren't found are also covered under the 'disappearance' clause in an aviation insurance policy

• Insurance companies are liable to pay the full sum assured under such a policy. However, local laws apply in case a particular country is not part of global pacts for compensation for air-related accidents
• Once the government concerned gives an official statement on the disappearance, the claims processing begins within 48 hours
  
  
• Life and property losses are to be paid in full. Number of lives lost and survivors (if any) is based on the official list provided by the airline
  
  
• Most countries follow the Montreal Convention of 1999, which covers norms with respect to carriage of passengers by air
  
  
• Article 50 of the Montreal Convention says governments shall ask their carriers to maintain adequate insurance covering liability under this convention
  
  
• More than 100 countries, including China, India and Malaysia, are party to this convention, which has provisions for loss of life and baggage
  
  
• With respect to the air carrier liability, the Montreal Convention has established a 'two-tier' system of liability - a carrier has a liability for up to 113,100 special drawing rights (Rs 10.58 crore, or $174,020) in case of passenger death
  
  
• The carrier might be liable to pay damages exceeding 113,100 SDRs, unless it proves the fault wasn't its, but was that of a third party
  
  
• With respect to loss or damage to baggage, the convention limits the air carrier's liability to 1,131 SDRs (Rs 1.05 crore or $1,741.74) per passenger, irrespective of baggage weight