Kathmandu: The family member of the deceased of Yeti Air’s plane crash may receive up to USD 20,000. Himalayan Everest Insurance Co. Ltd. is the insurer of Yeti Air. Yeti Air’s plane with call sign 9N ANC crashed on Sunday morning in Seti River Gorge of Pokhara City.
The ATR72 plane was flying from Kathmandu to Pokhara when it crashed while attempting to land at Pokhara International Airport. There were a total of 72 PAX on board including four crew members. A total of 69 dead bodies have been recovered from the Gorge. The airplane caught a massive fire immediately after it crashed.
Himalayan Everest Insurance has a reinsurance arrangement with UK-based reinsurer M.A.R.S. Himalayan Everest has retained only 0.30 percent risk of the total risk covered under the aviation insurance of Yeti Airlines. The insurance coverage per passenger is up to USD 20,000 only. According to the existing provision, the family member of deceased crew members will receive USD 40,000 as compensation.
The insurance coverage of domestic passengers and crew members is very low. A task force formed by the ministry of tourism and civil aviation suggested increasing the insurance coverage for passengers to USD 100,000 per pax. Nepal is also a party of the Montreal Convention 1999 but it has not made arrangements for insurance coverage of passengers and cargo as per international standards.