Sunday, December 24, 2006

Air-India to go in for fog risk cover

Mumbai: National flag carrier Air-India has floated a tender for fog insurance seeking coverage from leading insurance companies which underwrite similar weather-related risks. Sources said, including public sector and private companies, over a dozen insurance majors had submitted their bid to Air-India.
Confirming the development, Air-India Executive Director (Finance) S Venkat said this is as part of its corporate strategy to minimise the risk from poor weather conditions.
"We are planning to extend this weather-related risk cover to airports of Europe and the US, where the fog and snow impact operations. The risk over may include re-routing of flights, hotel accommodation and other losses. We will award the fog insurance contract shortly," Venkat said.
Fog results in low visibility conditions disrupting the take-off and landing of aircraft, which causes huge losses for airline companies.
24/12/06 P R Sanjai/Business Standard
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