KATHMANDU: Minister for Culture, Tourism and Civil Aviation Khadga Raj Paudel has proposed increasing the insurance liability for domestic airlines to 100,000 US dollars.
The minister shared the proposal during a theoretical discussion on the ‘Domestic Airline Liability Bill, 2083’ at a meeting of the Legislation Management Committee under the National Assembly in Singha Durbar on Tuesday.
Minister Paudel stated that the current insurance liability of approximately 20,000 US dollars is being increased to 100,000 US dollars to align with international standards. He emphasized that the government aims to legally guarantee passenger rights and minimum compensation for flight cancellations, delays and lost baggage.
The minister noted that for the first time, a legal basis is being established to provide compensation for non-passengers whose lives or property are damaged due to aircraft accidents on the ground. He acknowledged that the increase in insurance coverage might lead to a rise in future airfares and urged stakeholders to be understanding of the change.
Furthermore, he clarified that matters regarding the separation of regulatory and service provider bodies, as well as airport operations, will be addressed in a separate bill concerning the Civil Aviation Authority of Nepal.
