Unpacking Passenger Rights: Bridging Nigeria’s Air Travel Insurance Compensation Gap

• In the bustling airports across Nigeria, thousands of travelers 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 (NCAA) mandates that airlines provide refreshments, accommodation, and even financial compensation for delays exceeding three hours.

The NCAA has recently vowed to take tough measures against airlines that delay passengers’ luggage. The regulatory agency announced it would impose fines of $170 and ₦10,000 on foreign and local airlines respectively for delayed passengers’ luggage as a first measure to guide against such occurrences. Passengers can claim up to $1,000 for missing luggage on domestic flights and up to $1,288 Special Drawing Rights for international flights.

While the Nigerian Civil Aviation Act 2006 itself does not explicitly outline passenger rights, the Nigerian Civil Aviation Regulations 2015, specifically Part 19, covers consumer protection, including compensation for flight delays and cancellations.

 Under these regulations, airlines must provide refreshments and proper communication for delays of two to three hours. If a delay extends beyond airport closing hours, passengers are entitled to transportation and accommodation assistance. For international flights, passengers may receive meals, communication assistance, and compensation up to 30% of their ticket fee. So while the Civil Aviation Act 2006 establishes the NCAA’s authority, the 2015 regulations define the specific rights and remedies for passengers.

Yet despite these protective measures, the reality on the ground tells a different story. Many passengers face an uphill battle when seeking redress, often encountering bureaucratic obstacles, delays in processing claims, and in some cases, outright denial of their entitlements. This disconnect between established rights and their practical implementation stems largely from low awareness among travelers and inconsistent enforcement by regulatory authorities.

Global statistics indicate that approximately 5 to 7 bags per 1,000 passengers are mishandled worldwide, with Nigeria’s figures believed to align with these trends. Similarly, over 20% of flights in Nigeria experience delays due to operational inefficiencies, adverse weather conditions, or technical issues. These disruptions represent not just inconveniences but significant economic losses for both passengers and airlines.

All passengers have the right to safe and reliable air travel and it is the responsibility of airlines and regulators to ensure these rights are duly protected. However, the industry has also faced challenges related to consumer protection, especially concerns over service quality and passenger rights. While airlines must remain financially viable, passengers also have fundamental rights that must be safeguarded.

The regulatory framework that supports passenger comfort includes the Nigerian Civil Aviation Authority (NCAA) and the Civil Aviation Act, 2022 (CAA), the Nigerian Civil Aviation Protection Regulations, 2023, the Federal Airports Authority of Nigeria (FAAN) Act 1995, and the Federal Competition and Consumer Protection Act 2018, among others.

A key factor contributing to this situation is the optional nature of passenger insurance in Nigeria’s aviation sector. 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.

Public perception presents another barrier. Many Nigerians view insurance as an optional luxury rather than a necessary safeguard, limiting demand for such products. This cultural attitude persists despite ongoing educational efforts by both government agencies and private insurers to promote insurance awareness.

Airlines themselves have begun implementing strategies to address these perennial challenges. Advanced baggage tracking systems using barcodes or RFID tags now monitor luggage movement in real-time, ensuring bags are accurately routed and quickly located if misplaced. Automated handling systems are reducing human error while improving operational efficiency. For flight delays, predictive analytics help anticipate potential disruptions from weather, technical issues, or air traffic congestion, allowing for better contingency planning.

Several insurance options do exist for the informed Nigerian travelers. AIICO Insurance offers travel coverage embedded in airline ticketing systems, allowing passengers to opt in for minimal premiums. Other providers like Leadway Assurance and AXA Mansard market policies specifically covering delayed flights and lost baggage.

Reinsurance companies play a pivotal role in the Nigerian insurance industry, particularly in the context of passenger insurance packages. Their primary function is to provide a safety net for insurance companies by absorbing a portion of the risks associated with underwriting policies. This ensures that insurers can offer comprehensive coverage to passengers without fear of financial instability in the event of large claims. Notable reinsurance companies operating in Nigeria include Nigeria Reinsurance Corporation, Africa Reinsurance Corporation (Africa Re), Continental Reinsurance, and WAICA Re. These entities contribute significantly to the industry’s capacity to handle complex and high-value risks, thereby enhancing the reliability of passenger insurance packages.

The National Insurance Commission (NAICOM) has taken steps to bridge the awareness gap, organizing educational conferences and publishing informational materials about travel insurance benefits. NAICOM’s Commissioner for Insurance/CEO, Olusegun Omosehin, recently addressed misconceptions about the Nigerian insurance industry’s capacity to underwrite aviation risks, noting that “Insurance all over the world is anchored strongly on law-of-large-numbers, portfolio diversification and pooling arrangement with the support of reinsurance.”

Speaking at the 4th CHINET Aviacargo Conference in Lagos, Omosehin emphasized that the insurance sector is “best fit to understand the patterns, behaviours, and risk profiles of the various sectors,” while maintaining that NAICOM’s Prudential Guidelines establish standards for aviation insurance with “the ultimate intention of protecting consumers and stakeholders in the industry.”

These regulatory efforts require all underwriting firms to ensure aviation insurance transactions comply with contract certainty principles, including conformity with minimum passenger liability limits established by the NCAA. Nevertheless, the gap between regulatory intention and passenger experience remains substantial.

For Nigeria’s aviation sector to truly serve its growing customer base effectively, a multi-pronged approach is needed: 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 travelers fully understand and confidently exercise their rights to fair compensation when travel plans go awry through no fault of their own.