Can CAAB avoid liability after the airport fire disaster?

A.K.M Ehsanul Haque, FCII: A devastating fire that swept through the Cargo Village at Hazrat Shahjalal International Airport in Dhaka has raised serious concern over the answerability and preparedness of the Civil Aviation Authority of Bangladesh (CAAB). Importers who suffered massive losses in the blaze are now questioning whether the aviation authorities concerned carried suitable liability insurance to cover such catastrophic incident.

The fire, which broke out in the cargo storage facility earlier this month, destroyed imported goods worth crores of taka- including medicines, electronics, textiles and other essential commodities. Many importers claim they may never recover their losses, as early indications suggest gap in the insurance coverage of both the cargo handlers and the facility operator.

Under Bangladesh’s aviation and insurance regulations, CAAB, as the ballee (custodian) of the goods stored in its facility, holds a legal responsibility to ensure the safety and security of the cargo while under its care. This legal responsibility is not merely administrative but also financial- necessitating the authorities concerned to compensate for damages or losses resulting from negligence, mismanagement, or unsatisfactory protective measures.

Experts argue that the civil aviation authorities concerned should have maintained a Comprehensive General Liability (CGL) Insurance policy to safeguard against such risk. This policy would have covered its legal liability to the cargo owners for loss or damage caused by fire, theft, or other perils while the goods were in its custody.

The incident has also reignited debate about the state of risk management in Bangladesh’s public infrastructure. While private businesses are typically required to show proof of insurance coverage, government-run entities often operate under outdated policies or with insufficient sums insured.

Industry insiders say that a proper risk transfer mechanism — through comprehensive liability and property insurance — could protect both the authority and the importers. Moreover, regular safety audits and risk assessments should be made mandatory to prevent such tragedies in the future.

As investigations continue, the incident serves as a stark reminder that liability insurance is not a formality- it is a fundamental safeguard for both public and private sectors. The CAAB’s response to this crisis will likely shape future regulatory and operational standard for cargo handling across the country’s airports.