Cabinet okays $1.6 lakh for death of air passenger

The cabinet on Monday approved in principle the draft of Carriage by Air (Montreal Convention, 1999) Bill 2019 aiming at protecting the rights of passengers and the security of baggage carried by airlines operating flights to and from Bangladesh.

The civil aviation and tourism ministry placed the draft in the weekly cabinet meeting with prime minister Sheikh Hasina in the chair at her Tejgaon office, proposing $1.6 lakh for death of a airlines passenger in an aviation accident and $70 in damages for each kg of baggage lost. 

‘The bill proposes an initial compensation of $1.6 lakh for death of an airlines passenger in any aviation accident in keeping with the Montreal Convention 1999,’ cabinet secretary Shafiul Alam told a press briefing at the secretariat after the meeting.

He said that each of the victims of US Bangla Airlines plane that crashed in Kathmandu in March 2018 would have gotten the compensation if the proposed law was in force.

The plane crash killed 47 passengers and 4 crewmembers, mostly from Bangladesh and Nepal, including 28 from Bangladesh.

He said that the cabinet endorsed the draft bill ratifying the MC99 that would raise the compensation rates and ensure security of the baggage carried by air. 

Shafiul further said that the airlines concerned would be penalised with a $1.2 crore fine and a jail term of 10 years for not paying compensations to the victims.

The compensation would be applicable for both domestic and international flights’ passengers, he replied to a question.

Bangladesh is a signatory to the Warsaw Convention signed in 1929 where the compensation rates were lower, according to officials. 

The Montreal Convention 1999 has established airline liabilities in the case of death or injury to passengers, as well as in cases of delay, damage or loss of baggage and cargo.

It has also unified all the different international treaty regimes covering airline liabilities that had developed haphazardly since 1929.

MC99 has been designed to be a single, universal treaty to govern airline liabilities around the world.

Monday’s cabinet meeting also endorsed in principle the draft of ‘The Bangladesh House Building Finance Corporation Bill, 2019’ increasing the penalties for providing false information while seeking house building loans.

The proposed law would replace the ‘Bangladesh House Building Finance Corporation Order 1973’ with some changes, the cabinet secretary said.

It proposed increasing the authorised capital of the BHBFC to Tk 1000 crore and paid up capital to Tk 500 crore from the existing Tk 110 crore, Shafiul said.

The cabinet meeting also approved the Leather and Leather Goods Development Policy 2019 to promote exports by ensuring the sector’s environment-friendly development.

The policy stipulates loan facility for introducing green technologies in processing leather goods, the cabinet secretary said.  

The cabinet approved a draft agreement, too, for signing by Bangladesh and Czech Republic to avoid double taxation and check tax evasion.

It also endorsed a proposal for Bangladesh’s accession to the ‘Patent Cooperation Treaty’, Shafiul said.

News Courtesy: www.newagebd.net