ISLAMABAD – The federal government of Pakistan has approved a significant increase in compensation amount for passengers involved in air accidents.
The “Carriage by Air (Amendment) Bill 2026” was approved by the Senate after passing the National Assembly, and will become law following the President’s signature.
Under the new law, compensation for passengers who are killed or injured in air accidents has been set at up to Rs20 million.
The legislation mandates the submission of succession certificates for immediate payment, while advance payments must be made within 30 days of submission of inheritance certificates.
The bill also requires that cases related to air accidents be resolved within six months, with courts held accountable to the High Court in case of delays.
Additionally, consumer courts have been granted authority to hear air travel disputes, and the government now has the power to adjust compensation rates every three years according to inflation.
The amendment also introduces new penalty rates for losses or damages related to cargo and goods transport.
