Kathmandu. The Civil Aviation Authority of Nepal (CAAN) has suspended the implementation of the mandatory provision for international air flight operators to get Covid19 insurance for all in or outbound passengers.
CAAN has given time to the international airlines to make necessary preparations for the implementation of the insurance coverage after the airlines have criticized such a provision institutionally.
The International Air Transport Association (IATA) has warned that the CAAN’s decision will make air tickets expensive. The IATA has warned the CAAN that the decision taken at a time when it needs to encourage tourist arrivals will have a negative impact on tourist arrivals.
On December 3,2021 the CAAN had issued a circular regarding the mandatory provision Covid19 insurance coverage for all international passengers to cover the expenses of 14-days hotel quarantine and medical expenses of USD5,000. The provision was supposed to be effective from 15 December,2021. The CAAN had directed the airlines operators to issue the insurance policy with a provision to receive the claim from Nepali insurance companies.
In Nepal only Shikhar Insurance is providing the Covid19 insurance coverage under its medical insurance facilities.
