Nepal Cabinet approves bill to raise domestic airline liability to $100,000

Nepal's Cabinet has given its approval to a bill that will significantly raise the liability of domestic airlines to $100,000 per passenger in cases of serious injury or death. This move aims to modernize the country's aviation laws, bringing them closer to international standards.

The long-pending bill, which has been in the works since 2019, seeks to overhaul the domestic aviation liability and insurance regime. While the Montreal Convention, which Nepal ratified, governs international air travel, the new legislation intends to establish clearer responsibilities for airlines in domestic flights concerning accidents, delays, and baggage loss.

Under the proposed law, airlines will be liable for up to $100,000 in compensation for passenger death or serious injury during boarding, flight, or disembarkation. This is a substantial increase from the current minimum compensation of $20,000. The bill also mandates that airlines provide necessary medical treatment for non-fatal injuries and arrange for the return of deceased passengers' bodies, along with advance payments for funeral expenses.

Indu Ghimire, joint secretary at the Ministry of Culture, Tourism and Civil Aviation, stated that the draft was revised and resubmitted to the law ministry under the new government. The legislation aims to define passenger rights and carrier obligations comprehensively, including provisions on cargo liability and insurance coverage, while also outlining circumstances under which airlines might be exempt from liability.

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We have revised the draft and resubmitted it to the law ministry under the new government.