Air India, the country’s flagship airline, has renewed its insurance coverage for fiscal year 2017-2018. The airline paid a premium of US$14 million, a 20% discount from the previous year.
The new policy came into effect on October 1, and covers the entire 142-plane fleet, including 109 planes under Air India, 23 under budget airline brand Air India Express, and 10 small aircraft of Alliance Air, a domestic subsidiary.
The policy’s sum assured is at US$10.4 billion and covers both passengers and hull liability, according to the Economic Times.
The airline’s insurance policy for last year cost US$18.38 million, which in turn, was 30% lower than the previous year.
New India Assurance, the market’s largest general insurer, is the lead carrier for the policy, with three other state-owned insurers supporting. Meanwhile,
AIG, a top global aviation insurance leader, was lead reinsurer.
“Air India's professional and timely action was a great contributor, and support of New India Assurance and their understanding was a winning strategy,” Prabodh Thakker, chairman of Global Insurance Brokers, which acted as an intermediary in the transaction, told the Financial Express.
He added that adequate planning, timely action, and a good loss-record were of great benefit to Air India.
In September, Air India Express encountered a mishap that led to a US$10 million claim. But the claim registered only 3% of the company’s claim balance sheet, as the aviation policy is largely reinsurance-driven.
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