Spread the love

Kathmandu, July 8: The government is preparing to increase the insurance payout for domestic air crash victims from USD 20,000 to USD 100,000 (approx. Rs 13.6 million). The Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has drafted a bill outlining the new liability and insurance obligations for domestic airlines, and has opened it for public and stakeholder feedback until July 11.
Currently, families of domestic crash victims receive only USD 20,000 (around Rs 2.72 million). If the bill is passed as proposed, compensation will match international norms set by the Montreal Convention 1999, which Nepal ratified in December 2018. Nepali citizens killed in international crashes currently receive USD 165,000 (Rs 22.44 million).
MoCTCA spokesperson Ram Krishna Lamichhane said the bill aims to bring parity between domestic and international compensation, while also ensuring stronger protection of passengers’ rights. The revised bill mandates clearer rules for airline liability in cases of delays, disruptions, accidents, and cargo issues, and defines when carriers can be exempt from accountability.
The bill also proposes calculating injury compensation based on severity, including lost income and long-term earning impacts. Compensation limits would be reviewed every 10 years to adjust for inflation and market shifts.
Airlines will be held fully responsible for passenger safety and scheduled services. The bill also strictly prohibits boarding of unticketed passengers.
The push to align with international standards follows the 2018 US-Bangla Airlines crash in Kathmandu, which killed 51 people, including 22 Nepalis. The compensation gap in that case highlighted the urgent need for reform.
People’s News Monitoring Service