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Liability and insurance of airlines in Nepal: the revised bill

08/07/2025
Source : ORISHAS FINANCE
Categories: Sectors

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Le Nepal's Ministry of Culture, Tourism and Civil Aviation has revised the draft law governing the liability of national airlines and their insurance responsibilities. He invited the public to give their views on this subject.

The bill aims to bring Nepal's national aviation responsibility framework in line with global standards, according to an official at the Ministry of Culture, Tourism and Civil Aviation. This draft has been updated and now available on the ministry's web, signalling a new impetus to advance aviation reforms that have long been stalled after Nepal ratified the 1999 Montreal Convention in December 2018. The bill, which has been dormant since 2019, proposes comprehensive rules on passenger compensation, cargo liability, insurance coverage, and the conditions under which carriers are exempt from

liability.

The revised legislation outlines passenger rights and airline obligations in the event of an accident, delay, or disruption, in an effort to ensure clarity and accountability across the industry. The department allowed seven days to seek public comments. After this period, the draft will be submitted to the Ministry of Justice for legal review. The draft also provides for compensation in the event of flight delay or cancellation. In the event of a delay or cancellation of a planned flight, passengers with valid tickets must be notified at least three hours before the changed departure time.

Also, the bill requires airlines to take steps to ensure appropriate medical treatment in the event of a non-fatal injury or disability caused by an accident. In the event of the death of a passenger, the airline is responsible for returning the body to the family and for making advances to cover immediate funeral and transport costs

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