The Legal Framework: DGCA CAR Section 3

The Directorate General of Civil Aviation (DGCA) is India's civil aviation regulator. Its Civil Aviation Requirements (CAR), Section 3 — Air Transport, Series M Parts II, III, IV and other sub-parts, establish binding passenger protection rules for all Indian airlines and foreign airlines operating to/from India. The latest revision (CAR Section 3 Series M Part IV Issue III, effective 2024) updated denied-boarding and cancellation compensation upward.

For international travel, the Montreal Convention 1999 (which India ratified) governs liability for delays, baggage loss/damage, and personal injury. Both frameworks operate in parallel; passengers are entitled to whichever is more favourable.

Right 1: 24-Hour Free Cancellation

Under CAR Section 3 Series M Part II Issue I (2016 amendment), all Indian carriers must permit passengers to cancel within 24 hours of booking without any cancellation fee, provided:

  • The booking was made at least 7 days before the scheduled departure
  • The cancellation request is submitted within 24 hours of the booking timestamp
  • The booking is direct or via authorised channels (OTAs, GDS — not third-party resellers)

This applies to all fare types — including non-refundable promotional fares. The airline may retain government taxes and non-refundable transaction fees (typically ₹50–₹200) but must refund the full base fare.

Right 2: Flight Delay Compensation

Delay DurationAirline Must Provide
2+ hours (domestic, <2.5h flight)Meals + refreshments
3+ hours (domestic, 2.5h+ flight)Meals + refreshments
4+ hours (international short)Meals + refreshments
6+ hours (any flight)Meals + refreshments + free communication (calls/SMS); option of refund or alternate flight
6+ hours starting between 8 PM – 3 AMAll above + hotel accommodation + transfers
24+ hoursAll above + DGCA may direct compensation

Source: DGCA CAR Section 3 Series M Part IV, May 2026.

Right 3: Cancellation Compensation

If your flight is cancelled by the airline:

  • Less than 24 hours before departure: the airline must offer either a full refund (within 7 days) OR an alternate flight (no charge). The passenger chooses.
  • More than 24 hours before departure: the airline must offer either a full refund OR alternate flight; if the alternate flight is more than 2 hours away from the original schedule, the passenger may demand the refund instead.
  • Airline informed less than 24h before departure with no alternate at same time: compensation of ₹5,000–₹10,000 in addition to refund/alternate (depending on the original fare).

Right 4: Denied Boarding Compensation

Overbooking (denying boarding to a confirmed passenger because the flight is full) triggers the highest DGCA compensation tier:

ScenarioCompensation
Alternate flight within 1 hour of originalNo compensation
Alternate flight 1–24h after original200% of one-way base fare + fuel surcharge (max ₹10,000)
Alternate flight 24+ hours after original400% of one-way base fare + fuel surcharge (max ₹20,000)
No alternate offered (refund only)Refund + 400% of one-way base fare (max ₹20,000)
💡 Don't sign waivers: Airlines may offer travel vouchers in exchange for waiving cash compensation. You are entitled to cash. Do not sign any document until you understand what you're giving up.

Right 5: Baggage Loss & Damage

Domestic flights: Indian Carriage by Air Act, 1972, caps airline liability at ₹450 per kg (excluding hand baggage). For a 15 kg checked bag, the maximum claim is ₹6,750. Receipts for high-value items strengthen the claim.

International flights: Montreal Convention limits liability at 1,288 SDR per passenger (approximately ₹1.4 lakh as of May 2026) for checked baggage. For hand baggage, the same limit applies, but proof of value is required.

Delayed baggage: if your checked bag is delayed by 24+ hours, airlines typically provide a daily allowance of ₹500–₹1,500 for essentials (toiletries, change of clothes) — file the Property Irregularity Report (PIR) at the airline desk in the arrivals hall before leaving the airport.

Right 6: Refunds & Timelines

DGCA requires airlines to:

  • Cash payments: refund in cash within 30 days (typically 7–10 days with most carriers)
  • Credit card: refund to original card within 7 working days
  • Travel agents / OTAs: the airline transfers refund to the booking source, which must transfer to passenger within an additional 7 days
  • Government taxes (PSF, UDF, ADF): always refundable regardless of fare type — even on non-refundable Saver fares

Right 7: Special Assistance

Passengers with disabilities, unaccompanied minors, elderly passengers requiring wheelchair assistance, and pregnant passengers (post-28 weeks) are entitled to free ground handling assistance. Request at booking; airlines must arrange wheelchair, priority boarding, and gate transfer at zero cost.

How to File a Complaint

  1. Step 1: Airline customer care — give the airline 30 days to resolve. Send written complaint via the airline's website complaint form (preserve the case ID).
  2. Step 2: AirSewa portal — if unresolved or response unsatisfactory, file via airsewa.gov.in. DGCA escalates to the airline; resolution typically 15–30 days.
  3. Step 3: National Consumer Helpline — for refund denials, call 1915 or file via consumerhelpline.gov.in.
  4. Step 4: Consumer Court — for high-value claims (₹50,000+), file in District Consumer Disputes Redressal Commission. Limitation: 2 years from the cause of action.
  5. Step 5: Civil Aviation Ministry — write to Secretary, Ministry of Civil Aviation, Rajiv Gandhi Bhawan, New Delhi, with full case history. Use as last resort for systemic issues.
📝 Document everything: Keep boarding passes, baggage tags, food/hotel receipts, communications with the airline. Without documentation, claims often fail at the airline-response stage.

What DGCA Does NOT Cover

  • Delays/cancellations due to extraordinary circumstances (storm, security event, ATC strike, technical issues outside airline control) — airlines must still provide care (meals, hotel) but compensation may not apply
  • Visa denials, medical emergencies, and personal reasons — no refund obligation outside the 24-hour DGCA window
  • Misconnect on separate tickets (e.g., two airlines booked separately, missing the second flight because the first was delayed)
  • Personal injury during turbulence (covered by Montreal Convention internationally, not DGCA)

Recent Enforcement Highlights (2024–2026)

DGCA has been increasingly active in enforcing CAR Section 3:

  • 2024: DGCA fined SpiceJet ₹30 lakh for repeated CAR violations on refund timelines
  • 2024: Akasa Air, IndiGo, Vistara fined ₹2–5 crore collectively for denied-boarding events without adequate compensation
  • 2025: All scheduled Indian carriers mandated to publish CAR-compliant passenger charters on their homepage
  • 2025: Air India fined for misleading "no refund" tags on fare brand pages — required to add 24-hour DGCA window disclosure
  • 2026 (proposed): Draft DGCA amendment to increase denied-boarding maximum compensation to ₹30,000 (consultation open)