Families of Saurya Air Crash Victims Raise Concerns Over Insurance Payout Discrepancies

Kathmandu – Families of employees who lost their lives in last year’s Saurya Air plane crash at Kathmandu Airport have raised concerns over discrepancies in insurance payouts, alleging unequal compensation for staff members involved in the flight.

Reports indicate that two technical employees on duty during the “Feri Udan” flight received USD 50,000 (approx. NPR 7 million) each, while other victims’ families were offered only USD 20,000 (approx. NPR 2.8 million), a disparity that has sparked outrage among the affected families.

The accident occurred on Shrawan 9, 2081 BS, when the CRJ aircraft with registration Alpha–Mike–Echo crashed during takeoff en route to Pokhara for a comprehensive maintenance (C-check). Of the 19 people on board, 18—including most technical staff and engineers—were killed, while Captain Manish Ratna Shakya survived.

Investigations revealed that Saurya Air did not comply with ICAO guidelines requiring USD 100,000 insurance coverage for crew members, while coverage for passengers was also below standard. Families claim the airline’s negligence during the insurance arrangement has left them with limited compensation, forcing them to approach the Nepal Insurance Authority and the company’s insurer, Prabhu Insurance, to seek justice.

Sanchit Braj Acharya, CEO of Prabhu Insurance, clarified that the company processes claims based on agreements made with the airline: “We act according to the terms of the insurance agreement signed with Saurya Airlines. Any dispute over payouts is between the airline and the families of the victims.”

Affected families, including those of co-pilot Sushant Katuwal and operations engineer Mahato, have expressed frustration, emphasizing that their loved ones were performing official duties and should have been classified as crew, entitled to higher insurance coverage. Others, including technical staff like Dilip and Uddhav Puri, also face similar issues.

The Nepal Insurance Authority has stated that final insurance payouts cannot be processed until the investigation report is completed, leaving families waiting for clarity and justice.