The National Assembly’s Defence Sub-Committee has given approval to the Carriage by Air (Amendment) Bill 2025, introducing updated and significantly higher compensation limits for passengers and families affected by air acc!dents. Under the new legislation, the families of passengers who lose their lives in an international flight acc!dent will be entitled to Rs 6 crore in compensation. For domestic flights, the compensation amount has been set at Rs 2 crore, marking a substantial increase aimed at strengthening passenger protection and ensuring financial relief during emergencies.
The bill also sets clear guidelines for baggage and cargo-related claims. Airlines will be required to pay Rs 600,000 for lost baggage, providing travellers greater security for their belongings. For cargo shipments that are lost or damaged, compensation has been fixed at Rs 5,000 per kilogram, creating a more accountable system for carriers and ensuring transparency in the settlement process.
A significant portion of the amendment addresses long-standing concerns related to victims of previous PIA flight incidents. This includes clarifying procedures for life insurance claims, property settlements, and other forms of financial support owed to affected families. Lawmakers emphasised that these updates were essential to ensure fair treatment, resolve pending disputes, and bring consistency to compensation frameworks in line with international aviation standards.
Officials stated that the revised law aims to protect traveller rights, guarantee timely financial assistance, and hold airlines responsible for passenger safety and service obligations. The government believes that the updated compensation structure will provide greater security and peace of mind to passengers while improving aviation governance across Pakistan.
