The federal government has significantly raised compensation limits for passengers involved in air accidents.
The Senate has passed the Carriage by Air Amendment Bill 2026 after its approval by the National Assembly.
The legislation aims to speed up compensation payments and strengthen consumer protections in aviation cases.
The Senate has passed the Carriage by Air Amendment Bill 2026, which sets compensation of up to Rs20 million for passengers who are killed or injured in air accidents.
The bill had already been approved by the National Assembly and will become law after receiving the president’s signature.
The legislation marks a major increase in compensation protections for airline passengers in Pakistan.
Compensation payment within 30 days made mandatory
Under the new law, airlines will be required to make advance compensation payments within 30 days after the submission of a succession certificate.
Authorities say the measure is intended to reduce delays faced by families seeking financial support after aviation tragedies.
The succession certificate will remain mandatory for immediate compensation processing.
The amendment bill also introduces strict timelines for court proceedings related to air accidents.
According to the law, such cases must be decided within six months.
If delays occur, courts handling the cases will be required to justify the reasons before the relevant High Court, increasing judicial accountability in aviation disputes.
Consumer courts given additional powers
The legislation expands the role of consumer courts by granting them authority to hear aviation-related disputes.
Officials say this move is aimed at improving access to justice for passengers and speeding up the legal process.
The government will also have the authority to revise compensation rates every three years in line with inflation.
In addition to passenger compensation reforms, the bill introduces updated penalty rates for losses involving cargo and goods delivery.
The amendments are part of broader efforts to modernize aviation laws and improve consumer protections in the airline industry.
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