02/08/2026
The Ministry of Culture, Tourism, and Civil Aviation has registered the proposed "Domestic Airline Liability Act, 2083" in the Federal Parliament, aiming to make domestic air travel safer, more reliable, and passenger-friendly. The new legislation legally binds airlines to strict accountability for flight delays, cancellations, accidents, lost or damaged luggage, and cargo issues, while introducing mandatory ticket transparency where airfares, airport service charges, and government taxes must be listed separately. In the event of a fatal accident, the proposed law significantly increases compensation for the victim's legal heirs from the previous outdated limit of $20,000 under the Warsaw Convention and Hague Protocol to $100,000 in equivalent Nepali rupees. Additionally, airlines must immediately provide 500,000 rupees for funeral rites upon handing over a body, cover all medical expenses for injured passengers or third parties, and face strict penalties ranging from 10,000 to 2.5 million rupees for non-compliance.
Under the proposed framework, airlines must inform passengers at least three hours prior if a flight is canceled, delayed, or suspended due to company-related faults, providing designated facilities and compensation or facing compensation claims for affected travel. Passengers can claim up to $500 for lost or damaged checked baggage at a rate of $20 per kilogram, alongside compensation for hand-carry items and cargo losses, provided claims are filed within 30 days for baggage or delays and 90 days for death or dismemberment. Airlines are also mandated to secure comprehensive insurance covering passengers, cargo, third parties, war, and terrorist activities, failing which regulators can suspend flights and revoke Air Operator Certificates (AOC). However, the legislation exempts airlines from paying compensation if flights are disrupted due to bad weather, natural disasters, air traffic management, or circumstances entirely beyond the company's control.
Info: Setopati