The loss of Malaysia Airlines Flight MH370 was declared an accident by the Malaysian government on Thursday.
While an investigation and search for the plane continues, the ruling allows the families of the passengers and crew to receive compensation.
"We officially declare Malaysia Airlines flight MH370 an accident ... and that all 239 of the passengers and crew onboard MH370 are presumed to have lost their lives," Department of Civil Aviation Director-General Azharuddin Abdul Rahman said in a statement.
The flight was headed to Beijing from Kuala Lumpur with 239 people on board when it disappeared on March 8. No debris or evidence of a crash site have been found.
Azharuddin said that the airline is prepared to proceed with compensation procedures for the next-of-kin immediately.
Chinese Premier Li Keqiang emphasised that compensation is just one responsibility the country has to the victims' families.
"We hope the Malaysian side honours its promises and fully investigates the incident, settling claims and making peace with the families, especially continuing to make all efforts to find the missing plane and its passengers," Li said.
Most of the passengers on the doomed flight were from China.
Azharuddin affirmed that Malaysia, China, and Australia will continue their criminal and crash investigations, but admitted that the progress has been slow.
"Both investigations are limited by the lack of physical evidence at this time, particularly the flight recorders," he explained.
"Therefore, at this juncture, there is no evidence to substantiate any speculations as to the cause of the accident."
Malaysia Airlines suffered another tragic loss when Flight MH17 was shot down over the Ukraine while flying from Amsterdam to Kuala Lumpur on July 17. All 298 people on board were killed.
