Insurance rates may rise for Kingfisher

New Delhi: Kingfisher Airlines Ltd, India’s second largest carrier, faces higher insurance premiums after the aviation regulator re-classified an “incident” involving one of the company’s planes as an “accident”.
A Kingfisher turboprop ATR flying from Bhavnagar to Mumbai in November 2009, with 36 passengers on board, skidded off the runway as it landed, causing extensive damage, but no loss of life. The aircraft had to be written off.
The Directorate General of Civil Aviation (DGCA) classified the event as an “incident” in its 2010 investigation report, as Mint reported on 25 November. The rules define an accident as one where “any person suffers death or serious injury” or the “aircraft receives substantial damage”.
DGCA has now said in the report uploaded on its website that the Kingfisher Airlines ATR-72-212-A aircraft with the call sign VT-KAC, while operating flight IT-4124, “was involved in an accident”.
A safety expert said it was important to note DGCA’s acceptance that it had made a key error and corrected it.
Besides making 2009 an accident-free year for India, the earlier classification would have helped Kingfisher secure cheaper premiums on the insurance of its fleet, which is renewed every year.
Premiums could now go up by 5-10%, estimated a senior official with a domestic insurance firm who deals with the subject.
15/01/11 Tarun Shukla/Live Mint

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Categories: Kingfisher Jan 2011