Nepal moves to guarantee compensation for flight cancellations, delays and lost baggage

Kathmandu, September 15

Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel said the government is seeking to ensure by law minimum compensation and passenger rights in cases of flight cancellations, delays and lost baggage, among other issues.

Speaking during a theoretical discussion on the Bill on the Liability of Domestic Airlines, 2083, at a meeting of the National Assembly’s Legislative Management Committee in Singha Durbar on Tuesday, Minister Paudel said the bill seeks to establish in law the legal liabilities of domestic airlines, passenger rights and compensation-related provisions.

He said the government has proposed increasing the existing insurance liability of around US$20,000 to US$100,000 in line with international standards. He said passengers should be prepared for the possibility that airfares could increase to some extent in the future as a result of the higher insurance coverage.

Minister Paudel said the government was also seeking, for the first time, to establish a legal basis for compensation if an aircraft accident causes death or property damage to people on the ground or at their homes who are not passengers.

He said issues concerning the separation of regulatory and service-provider functions and airport operations would be addressed through a separate bill concerning the Civil Aviation Authority of Nepal.

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