In a landmark move toward air passenger rights and safety, the Government of Nepal is proposing to raise domestic air crash insurance compensation fivefold — from USD 20,000 to USD 100,000 (approx. Rs 13.6 million) per fatality. The draft bill, prepared by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA), is now open for public feedback until July 11.
The proposed revision follows international best practices under the Montreal Convention 1999, which Nepal ratified in 2018. Currently, families of victims in international flight accidents are entitled to USD 165,000, creating a sharp disparity with domestic cases. The new legislation seeks to bridge that gap and establish fair, equal treatment for all air travellers.
Beyond fatalities, the draft also introduces graded compensation for injuries based on loss of income and long-term impact on earning ability, along with mandatory reviews of compensation ceilings every 10 years to adjust for inflation and economic shifts.
Key provisions of the bill include:
- Airlines held fully accountable for scheduled flights and passenger safety
- Mandatory ticketing enforcement — no ticket, no boarding
- Passenger protection clauses for flight delays, disruptions, and cargo liabilities
- Exemptions defined only under specific, justified conditions
The reform push follows criticism over low domestic compensation during major incidents like the US-Bangla crash of March 2018, which claimed 51 lives — including 22 Nepalis — highlighting inconsistencies in Nepal’s aviation liability laws.
With this new bill, Nepal is taking a firm step toward strengthening aviation governance, ensuring justice for victims, and aligning its policies with global air safety and liability standards.
