Quick answer. If your domestic flight was cancelled with less than 24 hours notice by the airline, you are entitled to a full refund + cash compensation of ₹5,000 to ₹10,000 (depending on flight duration) under DGCA Civil Aviation Requirements (CAR), Section 3, Series M, Part IV. Notice between 14 days and 24 hours = full refund + alternate flight or compensation. Notice over 14 days = full refund, no compensation. Denied boarding (overbooking): ₹10,000 if alternate flight within 1 hour; ₹7,500 if delay > 1 hour. Delay > 6 hours: refund or alternate flight + meal. Lost baggage: ₹250-450/kg domestic; USD 20/kg international. Always claim with the airline first (30-day SLA), then escalate to AirSewa (https://airsewa.gov.in), DGCA, and Consumer Forum if unresolved.
Pooja Krishnan, 35, marketing manager at a consumer-goods firm in Delhi. Booked an IndiGo Delhi-Goa flight 6E-2353 on 18 January 2025 for a long weekend trip. Ticket cost ₹4,800.
“Four hours before departure I got the SMS — flight cancelled, technical reason. The IndiGo app gave me three options: full refund (in 7 days), reschedule on next available flight (the next IndiGo flight to Goa was 26 hours later), or a ₹5,000 'goodwill voucher' valid for one year. I took the refund — but I knew the CAR rules said cash compensation was due, not a voucher. I called the IndiGo customer care, the agent said 'voucher is the standard offer'. I emailed customer.relations@goindigo.in with the boarding email, the cancellation SMS timestamp, and quoted CAR Section 3 Series M Part IV, Para 3.1.5(b) — for a flight cancelled with less than 24 hours notice, compensation is ₹7,500 for a 1-2 hour duration domestic flight. Reply in 5 days: 'Voucher is the offered compensation as per our policy.' I filed an AirSewa complaint on 22 January with the same papers. Ticket number AS25-XXXXXXXX. AirSewa forwards to the airline with DGCA visibility. In 28 days IndiGo paid ₹7,500 cash to my source card — and refunded the ticket separately. The voucher I had also got — they didn't take it back. ₹0 cost. Just a clear citation of the rule.”
—Pooja, February 2025
Indian airlines carry about 4 lakh domestic passengers a day (DGCA monthly data, 2025). Cancellation rate runs at roughly 1.5-2.5% — so 6,000-10,000 cancelled flights worth of passengers a day. Most accept whatever the airline offers. A small minority who quote the CAR rule end up with cash compensation that is 2-3x what airlines offer by default — and the rule is enforceable.
A DGCA-mandated refund / compensation is the airline's legal obligation when a scheduled passenger flight is cancelled, delayed beyond a threshold, oversold (denied boarding), or your baggage is mishandled. The compensation is separate from the refund — refund returns your money for unused service; compensation is the airline's penalty for inconvenience caused.
You are covered as a passenger if:
The legal anchors are:
The moment you know the flight is cancelled / delayed / you've been denied boarding:
The airline must offer both. If you choose an alternate flight, compensation is still payable (delay / cancellation didn't cease just because you took the next flight). If you choose refund:
This is the step most passengers skip. Don't.