Bill increases compensation of air crash victims to PKR 20 million
Pakistan’s parliament has approved a
major increase in compensation for passengers injured or killed in air
accidents, raising the liability amount from PKR5 million to PKR20 million
under amendments to the country’s aviation law.
The Senate of Pakistan passed “The
Carriage by Air (Amendment) Bill, 2026” on May 12 after it had already been
approved by the National Assembly of Pakistan. The legislation now awaits
formal assent from President of Pakistan before becoming law.
Under the amendment, airlines
operating in Pakistan will no longer be able to exclude or limit liability for
damages up to PKR20 million per passenger in cases involving injury or death
arising from an air accident.
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enhances compensation packages significantly for air travel incidents
The bill further states that
carriers may avoid liability for compensation exceeding PKR20 million only if
they can prove that the damage was not caused by negligence or wrongful acts by
the airline, its employees or agents, or that the incident resulted solely from
the actions of a third party.
The changes are seen as a
significant update to Pakistan’s aviation liability framework, bringing
compensation levels more in line with rising insurance, operational and
passenger protection standards in international aviation.
Pakistan’s existing compensation
threshold of PKR5 million had faced criticism for being outdated given inflation
and the increasing financial burden on affected families following aviation
accidents. The revised amount is intended to provide stronger financial
protection and improve accountability within the aviation sector.
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establishes independent body to investigate aircraft crashes
The move follows growing attention
on aviation safety and passenger rights in Pakistan in recent years,
particularly after several high-profile air incidents prompted calls for
regulatory reforms and stronger consumer protections. The country’s aviation
industry has also undergone increased scrutiny from international regulators
and oversight bodies following safety and licensing concerns raised earlier in
the decade.
The amendment forms part of broader
efforts by Pakistani authorities to modernise aviation regulations and align
domestic laws with evolving global standards governing air passenger rights and
carrier liability.
Source: Dawn