Nacil manages to control insurance cost

The National Aviation Company of India (Nacil) has managed to avoid any adverse impact of the Air France crash on its insurance cost as it has renewed its annual cover without a significant rise in premium.
This was despite the cover size rising 34 per cent to $8.59 billion as against $6.39 billion in 2008-09. The one-year policy will be effective from September.
The contract has been bagged by Reliance General Insurance along with HDFC Ergo, Bajaj Allianz and Iffco Tokio General Insurance Company. The state-owned airline will pay $24.3 million for 134 aircraft.
The public sector consortium, led by New India Assurance, came close with a bid of $24.9 million. New India Assurance had provided the cover to the national carrier in 2008. The other bidder was ICICI Lombard General Insurance.
“The rate has actually fallen from last year as the hull value has gone up by around 34 per cent as against no rise in premium,” said a senior executive of one of the four insurance companies that had insured the airline.
29/08/09 Shilpy Sinha/Business Standard

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Categories: NACIL Aug 2009