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The attacks, after a night of crossborder strikes in Gaza and Lebanon, added to heightened Israeli-Palestinian tensions following Israeli police raids in Jerusalem's Al-Aqsa mosque this week.
Netanyahu, 73, Israel's longest-serving Prime Minister, is returning as prime minister with the formation of his sixth government, which is composed of a number of far-right allies.
It's a significant increase from the initial 10 million-euro offer to the families ahead of the 50th anniversary of the attack, which will be commemorated on Monday.
At one point, charged down by officers, the group carrying her coffin backed against a wall and almost dropped the casket.
The veteran reporter was hit by a live bullet on Wednesday as she was covering an Israeli military raid in the city of Jenin, Al Jazeera said.
The casualties include armed members of militant groups.
It was not immediately known how Arya, a 2008-batch Indian Foreign Service officer, died.
A native of Keerithodu in the hill district of Idukki, the 30-year-old woman had worked as a caregiver attending to an old woman at a house in the southern Israeli coastal city of Ashkelon.
Kozhikode resident Muhammed Marikkar built the house in the 1980s and named his first son Yasser Arafat as a tribute the leader of the Palestine Liberation Organisation.
An Egyptian-mediated truce between Israel and Hamas took hold on Friday after the worst violence in years.