Govt considers major hike in domestic air crash payouts

KATHMANDU, July 8: The government is considering increasing the insurance amount by fivefold to USD 100,000 for domestic air travellers in case they die in air accidents.

The Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has prepared a draft of the bill related to Domestic Airlines’ Liabilities and Insurance Responsibilities. Ram Krishna Lamichhane, spokesperson for the ministry, said they have made the draft public and are seeking suggestions from all stakeholders and the general public within the deadline of July 11.

As of now, the family of a deceased person in an air crash is entitled to a compensation of only US $20,000 (equivalent to Rs 2.72 million). If the new bill is endorsed in its form, the victim’s family members will receive around Rs 13.60 million from insurance companies concerned.

The revised draft has been prepared in the line with the norms set by the Montreal Convention 1999 which Nepal ratified in December 2018.

In case of death in international flights, the family members of any Nepali citizen is entitled to receive an insurance amount of US $165,000 (Rs 22.44 million). Lamichhane said that the laws have been aligned with the international standard so that the victims of domestic air crashes also get compensation on par with that of international flights.

The revised legislation also underlines to safeguard the rights of airlines passengers while making airlines companies more accountable towards travelers in terms of accidents and delays or disruptions of scheduled flights. Likewise, it also talks about implementing comprehensive rules on passenger compensation and cargo liability of the airlines companies along with defining the conditions under which carriers are exempt from responsibility.

According to the MCTCA, the new law has proposed to calculate compensation of injured people based on the severity of the sufferings that include cases of injuries resulting in loss of income and the possible long-term impact on the earning abilities of the victims of the mishaps. The bill has envisioned reviewing compensation thresholds every 10 years in the line of inflation and changing market conditions.

The concerned airlines company will have to assume full responsibility of its passengers in terms of stipulated time schedule and safety of passengers. The bill has also cautioned the airline companies not to allow any passenger who does not procure a ticket for the air travel.

The government agreed to ratify the Montreal Convention to enforce new laws on compensation citing the disparity in compensation amount following the crash of the US-Bangla Airlines flight on March 12, 2018. The airline's flight from Dhaka to Kathmandu crashed while landing at Tribhuvan International Airport, which killed 51 passengers including 22 Nepalis.