An expert in the insurance sector, Ade Adesokan, has said that the uptake of travel insurance by passengers remains poor, leaving them vulnerable to financial losses occasioned by flight delays and baggage losses.
Adesokan indicated this in a piece titled ‘Unpacking Passenger Rights: Bridging Nigeria’s Air Travel Insurance Compensation Gap’, which he published on Friday.
He notes that the development leaves passengers struggling to access compensation, even though coverage options exist and regulatory frameworks support their claims.
“In the bustling airports across Nigeria, thousands of travellers move through terminals daily, many unaware of their rights when flights are delayed, or baggage goes missing. Despite clear regulations established through both international agreements and local legislation, a significant awareness gap exists regarding passenger compensation in Nigeria’s aviation sector.
“The legal framework governing these matters stems primarily from the Civil Aviation Act of 2006 and the Montreal Convention of 1999, which Nigeria has ratified. Under these provisions, passengers whose luggage is lost are entitled to compensation calculated based on the weight of their baggage, with the Montreal Convention capping compensation at approximately $1,800 per passenger. For delayed flights, the Nigerian Civil Aviation Authority mandates that airlines provide refreshments, accommodation, and even financial compensation for delays exceeding three hours.
“The Nigerian Civil Aviation Authority has recently vowed to take tough measures against airlines that delay passengers’ luggage.
The regulatory agency said it would impose fines of $170 and N10,000 on foreign and local airlines, respectively, for delayed passengers’ luggage as a first measure to guide against such an act. The NCAA stated that passengers could claim up to $1,000 for missing luggage on domestic flights as well as $1,288 Special Drawing Rights for international flights,” he affirmed.
Highlighting some of the drivers of this trend, Adesokan fingered the optional nature of passenger insurance in Nigeria’s aviation sector.
He said, “Unlike third-party motor insurance, which is mandated by law due to its direct impact on public safety and liability, passenger insurance for air travel remains largely voluntary. This approach differs markedly from practices in some other countries where basic travel protection is bundled into ticket prices.
“The enforcement landscape compounds these challenges. While road safety compliance benefits from monitoring by agencies like the Federal Road Safety Corps, Vehicle Inspection Organisation, and Police, no equivalent body actively oversees compliance with passenger insurance in aviation.
This absence of dedicated enforcement infrastructure makes implementing passenger protection measures particularly challenging.”
He also noted that the public perception of insurance as an optional luxury rather than a necessary safeguard was limiting the uptake of travel insurance.
Adesokan posited that for Nigeria’s aviation sector to truly serve its growing customer base effectively, a multi-pronged approach is needed, including “strengthening regulatory enforcement mechanisms, improving airline accountability systems, and perhaps most critically, launching comprehensive passenger awareness campaigns.
“Only through such coordinated efforts can Nigerian air travellers fully understand and confidently exercise their rights to fair compensation when travel plans go awry through no fault of their own.”
