Nepal’s cabinet has approved a bill significantly increasing financial liability for domestic airlines in cases of passenger death or injury, raising the maximum compensation to $100,000. The proposed legislation also mandates insurance coverage for airlines and establishes clearer regulations concerning flight delays, lost baggage, and cargo handling. These changes aim to modernize Nepal’s domestic aviation standards, bringing them more in line with international norms. Currently, compensation levels are substantially lower, leading to dissatisfaction and legal challenges following accidents. Advocates say the bill will enhance passenger protection and encourage safer operational practices within the industry. The draft law now progresses towards parliamentary approval before becoming law, representing a substantial shift in aviation accountability in Nepal. This reform addresses growing concerns over safety in the country’s rapidly expanding domestic air travel sector.