US-Bangla Crash: Court Orders ‘Unlimited Liability’ Compensation for Victims’ Families

The Kathmandu District Court has ruled that families of those killed in the 2018 US-Bangla Airlines crash at Tribhuvan International Airport are entitled to compensation under the principle of “unlimited liability,” holding the airline responsible for the accident due to negligence.

According to the full text of the verdict issued a few days ago, the court has ordered US-Bangla Airlines to pay nearly Rs 380 million in compensation to the legal heirs of the deceased and to the injured victims of the crash.

The court had delivered its initial verdict in July-August last year, directing the airline to compensate the victims’ families. Six months later, the court released the detailed ruling, clarifying that the compensation must be paid under unlimited liability. This marks the first time a Nepali court has ordered compensation for victims’ families in an aircraft accident on such grounds.

The ruling relates to the crash of a US-Bangla Airlines Bombardier Dash 8 Q400 aircraft, which occurred on March 12, 2018, while landing at Tribhuvan International Airport. The flight had departed from Hazrat Shahjalal International Airport in Dhaka.

Seventeen families of passengers who died in the crash had filed compensation claims against US-Bangla Airlines and other defendants. The court ruled in favour of all 17 plaintiffs, ordering the airline to compensate them. Many of the deceased were medical students and health professionals returning to Nepal after completing MBBS studies in Bangladesh. The families had filed the case in 2019.

At the time of the accident, the aircraft was carrying 71 people—67 passengers and four crew members. All four crew members and 47 passengers were killed, bringing the death toll to 51. The airline had earlier paid the victims’ families USD 20,000 each as insurance and funeral expenses.

In its ruling, the court noted that Article 22 of the Warsaw Convention guarantees compensation under limited liability in the event of a passenger’s death, which amounts to USD 23,654—approximately Rs 3.26 million at the prevailing exchange rate at the time. However, the court concluded that the crash occurred due to negligence and reckless conduct by the aircraft’s pilot and flight officer.

“As the accident resulted from negligence and reckless behaviour, the incident does not fall within the scope of limited liability,” the verdict states. “Accordingly, unlimited liability arises on the part of the airline.”

Under unlimited liability, the court said, compensation must be determined based on factors including the deceased’s age, profession, future earning potential, and the direct and indirect losses suffered by dependents. The court further stated that an airline can limit its liability only if it proves that the accident did not occur due to its negligence—a condition US-Bangla Airlines failed to establish.

The court also observed that at the time of the crash, both Bangladesh—the country of aircraft registration—and Nepal—the destination country—were parties to the Warsaw Convention (1992 amendment). However, Bangladesh had only signed, and Nepal had neither signed nor ratified, the Montreal Convention at the time of the accident. Had the Montreal Convention applied, unlimited liability would have followed automatically. In its absence, the court still reached the same conclusion—by proving negligence.