Kathmandu. The Ministry of Culture, Tourism and Civil Aviation has sought suggestions from stakeholders on the draft bill to regulate the liability and insurance responsibilities of domestic airlines.
The Ministry has requested the government to submit its suggestions on the 15 TAG_CLOSE_a_28-page long TAG_OPEN_a_28 draft bill within seven days i.e. by July 15.
The draft bill published on the ministry’s website is expected to make the liability of domestic air service companies in line with the provisions of the Montreal Convention 1999 ratified by Nepal in December 2018. At present, the Montreal Convention, where Nepal is a party country, is applicable only for international air travel.
Although the initial draft of the bill was prepared in 2019, it did not move forward due to pressure from private sector air service providers. If the bill becomes a law, passengers flying through domestic air service companies will be able to claim adequate compensation for the damage caused during the journey.
After the suggestions of the stakeholders, the Ministry will take the suggestions of the Law Ministry to examine the legal aspect by making necessary amendments. After approval from the Law Ministry with necessary suggestions, the Ministry has to submit it to the Council of Ministers.
Once the Council of Ministers approves the bill and approves it to be registered in the House of Representatives, the bill will be registered in the Parliament with a proposal to be discussed and passed on behalf of the Ministry.
Domestic airlines will have to pay up to $100,000 in damages to passengers if they suffer serious injury, physical damage or death due to boarding, flight or landing accidents. At present, this arrangement is only up to $ 2,000.
The minimum limit for liability insurance for third parties has been set at $60 million.
According to the draft bill, airlines should provide proper medical treatment in case of non-fatal injuries or disabilities caused by accidents. In the event of a passenger’s death, it will be the responsibility of the airline to return the body to the family and provide advance payment to meet the immediate funeral and transportation costs. Such amount will be determined in the agreement between the passenger and the air service provider.
The draft also provides for compensation for flight delays and cancellations. If the scheduled flight is delayed or cancelled, passengers with valid tickets should be notified at least three hours before the revised departure time.
The bill also outlines scenarios that exempt airlines from liability. The air service will bear no responsibility for delays or cancellations caused by weather disturbances, natural disasters, airport or air transport service disruptions, or security-related restrictions imposed by government authorities.
In case of injury or damage caused by extreme negligence or pre-existing health conditions of the passenger, air service will not be liable for compensation if the air service company can provide evidence to substantiate its claim.
The draft also includes provisions relating to third-party liability in the event of an aircraft crash.
If a passenger is injured or disabled during the flight, a claim of compensation and medical costs has been proposed to be filed with the airline or its agent within 60 days with the necessary documents. In the event of the air service company’s refusal to pay the compensation, the affected party can file a case in the concerned court within 35 days of receiving the notice.
The bill also provides for the government to review the compensation limit every 10 years and adjust it according to inflation and current market conditions.
