The accident happened in September 2006 when a Nimrod spy plane exploded soon after air to air refuelling. Fuel leaked and then ignited when it came into contact with a hot air pipe.
The amount of compensation has not been disclosed but the payments were made two years after the relatives began legal action. It had been thought that all the claims had now been settled but there is still one firm of accident solicitors with outstanding personal injury claims.
The claims have been complicated by the fact that different cases were filed by various family members; some of whom have agreed settlement whilst others have not.
A spokesman for the MoD said that ‘sincere condolences’ had been sent to the families and the compensation was to help ensure financial security for the future.
He also explained that when considering compensation claims the MoD had to establish whether or not it had a legal liability before settling.
One of the firms of personal injury solicitors involved in the claims said that civil cases had been filed by families of two of the deceased servicemen and these would be heard in Edinburgh’s High Court before the end of November.
An independent review carried out in October last year, said that the government department had sacrificed safety in order to reduce costs and that the accident was preventable.
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