Nacil to call for bids for $7 bn cover

Mumbai: Insurance companies are getting ready to aggresively bid for the country’s largest aviation insurance policy, with a cover of up to $7 billion (Rs28,000 crore) when the National Aviation Co. of India Ltd, or Nacil, into which state-run firms Air India and Indian Airlines were merged last year, floats a tender for the same this week.
All state-owned and private insurance firms are expected to bid for the business and some of them have already started discussions to forge alliances, according to a senior executive with a private sector insurance firm who did not wish to be identified.
Nacil expects to buy the policy, which will cover 140 planes, at a substantial discount—apart from the number of aircraft involved, its fleet is also young, a factor that goes into pricing.
The insurance contract for 2007-08 for Air India was bagged by a consortium led by state-run New India Assurance Co. Ltd with ICICI Lombard General Insurance Co. Ltd as co-insurer.
25/02/08 P.R. Sanjai/Livemint

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Categories: Air India - International Feb 2008, Air India Budget Feb 2008, Air India Domestic Feb 2008, Air India Regional Feb 2008, NACIL Feb 2008