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Govt hints at hike in air accident insurance fare

Artha Sarokar

Kathmandu. Minister for Culture, Tourism and Civil Aviation Khadak Raj Poudel has said that domestic air fare could also be increased if the responsibility of accident insurance for air passengers is increased as per the international standard. Minister Poudel said this during a theoretical discussion on the ‘Domestic Airlines Liability Bill, 2083’ in the meeting of the Legislation Management Committee.

He said that the insurance liability will be increased from about 20,000 US dollars to about 100,000 US dollars as per the international standard.

According to him, the cost of the airline will increase with the increase in insurance liability, which is likely to affect the airfare. However, he said that the government has an obligation to make the liability related to the safety of passengers and in accordance with international standards.

‘… In the current practice, the limit of insurance is about $20,000. After the proposed arrangement, this liability will increase to about $100,000 according to international standards. “With the increase in insurance liability, there is a possibility of some increase in airfares,” he said. ’

He said that Nepal has aimed to develop tourism as the main pillar of the economy, so international standards and standards should be followed. Minister Poudel said that he has not been able to find the legal basis for the double i. e. ‘dollar fare’ that exists in air service in remote areas. He said that such discrimination in air fare between foreign and Nepali passengers is not appropriate. He said that it would be unfair to treat passengers differently in the same service as the rights of passengers are not based on citizenship.

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