KATHMANDU, Jan 30: The Ministry of Finance (MoF) has agreed to increase the compensation for domestic air accidents. The MoF consented to the proposal of the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) to increase the compensation amount given to the family members of air accidents to Rs 13 million per person killed in such accidents.
The MoF sent back the draft bill to make provisions regarding the liability and insurance of air transport service operating organizations to the MoCTCA with feedback, confirmed Subarna Bhattarai, an official at the MoCTCA.
After taking the opinion from the Ministry of Law, Justice and Parliamentary Affairs, the draft bill will be sent to the Cabinet. Following the approval from the Cabinet, it will be presented in the Parliament. After the Parliament approves it and the president authenticates it, the bill will officially become a law and be implemented.
Once this bill is approved, the insurance amount to be received by families of passengers who die in air crashes will increase by five times.
According to the bill prepared by the ministry, family members of the passengers who lose their lives in domestic flight accidents currently receive $20,000 per passenger as compensation. However, once the bill is approved, the amount will be increased to $100,000, or Rs 13 million for the families of the affected passengers based on the current exchange rate.
Currently, the amount of such insurance for international flights is $160,000.
According to the provisions proposed in the draft bill, the government has adopted the provisions of the Montreal Convention 1999 (MC99) for domestic air flights. This convention provides $100,000 in compensation to the families of the deceased who lose their lives in air accidents.
Nepal ratified the convention on October 16, 2018 and implemented it from December 15 of the same year. According to the MoCTCA, a provision is being made to allow passengers to claim insurance for domestic flights, baggage damage compensation, and compensation claims in case of flight delays. The ministry mentioned that as the premium will also increase if the insurance amount is increased, the bill proposes to offer only $100,000 so that the companies are not affected.