Government preparing to increase air travel insurance

Posted on by Biju Shrestha

The government of Nepal is set to convey the proposal for increasing insurance of air passengers to the ‘Montréal Convention’. Ministry of Culture, Tourism and Civil Aviation (MoCTCA) is preparing for necessary procedures for getting approval from the International Civil Aviation Organization (ICAO) ‘Montréal Convention’.

Currently the insurance for air passenger is 20 thousand dollar which has been same for last 60 years and the government is increasing it to 1,13,000 dollar for international and 50,000 dollar for domestic air passengers.

Nepal signed the ‘Montréal convention’ held by ICAO in Montréal, Canada in 1999 to increase the air passengers insurance but the government hasn’t approved the convention till now in the parliament and as per the result the insurance amount couldn’t be increased. This has also been the reason for peoples not preferring Nepal Airlines for international travel.

Big countries currently have insurance of 1,13,000 dollar and above for international passenger which was signed in Warsaw Protocol in 1929 ($10,000 insurance) that was amended in 1955 at The Hague ($20,000 insurance) and in 1975 in Montréal ($75,000 insurance). Whereas Nepal still follows Hague Protocol of 1955. Due to this reason also, insurance amount has not been finalized for family of deceased of US-Bangla Crash that happened couple of months ago in Tribhuvan International Airport.

Not only Montreal convention, Nepal now has to approve Cape Town convention and delay in implementation has increased problem. Tourism Minister will take proposal to Ministry Council after getting approved from Ministry of Law and Justice. Last year, the Ministry of Tourism had sent a draft law by discussing with the National Bank, Banks, Finance Ministry, Insurance Committee, Airlines Company, Nepal Civil Aviation Authority, Nepal Airlines, Himalayan Airlines and concerned officials.

Source: karobardaily.com
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