Families of Saurya Airlines Crash Victims Yet to Receive Insurance Compensation

Kathmandu – Families of the victims of the Saurya Airlines plane crash have yet to receive insurance compensation even eight months after the tragedy, raising concerns about delays and negligence from both the airline and government agencies. The National Human Rights Commission has shown interest in investigating the issue, citing serious lapses in handling the compensation process.

The crash occurred on July 24, 2024, when a Saurya Airlines CRJ-200 aircraft, operating a ferry flight (non-revenue flight) to Pokhara, lost balance just four seconds after takeoff from Tribhuvan International Airport and crashed nearby. The accident claimed 18 lives, including a child and several crew members, while the captain, Manish Ratan Shakya, was rescued alive and is currently recovering at home after treatment in Delhi. Saurya Airlines has stated that he may be transferred to Singapore for further care.

Following the incident, the government formed a five-member investigation commission led by former Civil Aviation Authority director general Ratishchandra Lal Suman. However, despite promising to release a report within 90 days, the government has remained silent even after 227 days. A preliminary report released on September 5 cited three main causes for the crash: possible imbalance in the aircraft’s takeoff weight, inadequate speed during takeoff, and failure to follow ferry flight standards.

Prabhu Insurance, which insured the airline, and its British reinsurer, AXA XL from the Lloyd’s group, have delayed compensation over questions regarding the flight’s legality. AXA XL has sought clarification from the Civil Aviation Authority on whether it was a ferry flight or a special flight, pointing out that the presence of a woman and a child on board violated ferry flight regulations.

Pradhan & Associates, the Nepali firm handling the insurance settlement, stated that six families – of Punya Ratna Shahi, Shyam Bindukar, Amitman Maharjan, Sarbesh Marasini, Ashwin Kumar Niroula, and Sagar Kumar Acharya – have submitted compensation claims. With no other claims made by the deadline, compensation for these six families is expected soon.

Under the Warsaw Convention of 1929 and the Hague Protocol of 1995, families of passengers who die in domestic flights in Nepal are entitled to $20,000 (approximately NPR 2.8 million) in compensation per passenger, while crew members’ families are entitled to $50,000 (approximately NPR 7 million). However, AXA XL has agreed to provide $50,000 only to the families of co-pilot Sushant Katwal and engineer Santosh Mahato, sparking dissatisfaction among the other victims’ families.

Questions have also been raised about the aircraft’s fitness to fly. The plane had been grounded for 34 days before the flight, and some families have alleged that the flight was illegal. Prakash Kumar Khatri, whose daughter Prija Khatri died in the crash, has called for a reinvestigation, citing irregularities in the flight manifest and the aircraft’s authorization to fly. He has urged the government to conduct a thorough probe to ensure accountability and justice for the victims.