Insurers in tussle for Sahara account

Kolkata: As the Jet Sahara deal prepares to take off, there seems to be speculation on whether the Sahara insurance account, currently with National Insurance Company (NIC), could move to Delhi-based Oriental Insurance Company (OIC), which insures the Jet Airways account. While re-endorsing may be on the cards, NIC is likely to continue to insure Sahara till the next renewal comes up in September.
Much depends on the transaction and merger formalities between Jet and Sahara. “It is early to predict whether there is a possibility of the account shifting to OIC. A lot will be decided on the administrative control,” D Burman, general manager, NIC, said.
NIC, which also insures SpiceJet, gets around Rs 38-40 crore worth premium from the Sahara fleet of 29 aircrafts, which include 22 Boeings and 7CRJs. The insurable hull value for all these aircrafts range between $20 and $54 million. Other risks like war risks and hull spares are also covered by NIC. The single largest liability covered is a combined single liability of around $750 million, which is a third-party liability for covering damage to property or people and others.
13/04/07 Nandini Goswami/Daily News & Analysis

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Categories: Air Sahara Apr 2007