BIJAY DAMASE

KATHMANDU, July 30: The families of those who lost their lives in the Saurya Airlines crash on July 24 will not receive the same compensation as those affected by international flight accidents. Of the 19 people on board the flight, 18 died in the crash. Since Nepal does not apply the provisions of the Montreal Convention on Air Flight 1999 to domestic flights, the relatives of the deceased will not receive the same compensation as those who lose their lives in international flight accidents.

In August 2018, Nepal's Parliament approved the Montreal Convention, which stipulates compensation of at least 113,100 Special Drawing Rights (SDRs) — approximately $149,951 or Rs 20,133,920 — from the insurance company for international flights. However, Nepal applies the older Warsaw Convention 1929 to domestic flights. According to this provision, in the event of a domestic flight accident, the passengers’ families receive at least $20,000 (Rs 2,625,400) per person from the insurance company in case of loss of life.

Deepak Kumar Pokharel, chairman of Saurya Airlines, stated that all insurance processes for the families of the deceased have been handled based on the current system. He also emphasized that the airline is committed to providing all necessary facilities as per the rules of the Government of Nepal.

After the Montreal Convention was passed, efforts to apply its provisions to domestic flights were stalled due to intense pressure from domestic airline operators. They argue that implementing these provisions would increase compensation amounts and insurance premiums, making it difficult for them to cover these costs. Anil Manandhar, spokesperson for Shree Airlines, noted that if the premiums are paid solely by the airlines, the burden will fall on passengers, potentially increasing operating expenses and affecting service affordability.

In February 2023, the Cabinet approved a draft bill to increase the compensation amount to $100,000 for domestic flight accidents. The draft bill includes provisions for the airline companies to cover all expenses related to repatriating the deceased and handling funeral arrangements, with no limits set on the airline's liability.

Despite the bill being drafted by the Ministry of Culture, Tourism, and Civil Aviation, it has yet to be submitted to Parliament. Nepali Congress MP Sanjay Gautam criticized the government's lack of action, emphasizing the need for fair compensation.

Culture, Tourism, and Civil Aviation Minister Badri Prasad Pandey stated that the families of those who lost their lives in the Saurya Airlines crash will receive compensation according to the insurance policy purchased by the airline. Saurya's insurance is with Prabhu Insurance, and the amount will be paid according to the contract with the company.

The draft bill, initially overseen by Buddhisagar Lamichhane, joint secretary of the Ministry of Tourism, has faced delays following his suspension on May 7. Lamichhane is implicated in a corruption case related to widebody aircraft procurement.

Ganesh Prasad Pandey, secretary of the Ministry of Tourism, confirmed that work is ongoing to finalize the draft bill and submit it to Parliament soon.

Proposed Arrangements

• Families of passengers who lose their lives in domestic flight accidents will receive $100,000 in compensation.
• The airline will be responsible for repatriating the deceased and covering all related expenses.
• The airline operating organization cannot set liability limits lower than the amount specified by law.
• The airline company will not be obliged to pay compensation in cases where death or disfigurement is due to a pre-existing serious illness.
•  The compensation amount will be reviewed by the Government of Nepal every ten years.

Current Arrangement

Nepal is currently implementing the provisions of the Warsaw Convention 1929 for domestic flights. Under this convention, if a passenger dies in a domestic flight accident, the next of kin will receive $20,000 in compensation from the insurance company. Claims for injuries during the flight can be made through the insurance company affiliated to the airline, with decisions on compensation being made within 60 days of claim submission.