New Delhi: All private non-life insurance companies barring ICICI Lombard General Insurance have refrained from offering insurance cover to country’s flag carrier Air India. In response to the technical bids invited on May 20, by Air India seeking insurance cover to itself and subsidiaries as well as joint ventures, only ICICI Lombard and the four government-owned non-life insurers – New India Assurance, Oriental Insurance, National Insurance and United India – have applied.
Air India insurance policy is the country’s largest aviation policy and the cover for 2011-12 is due for renewal on October 1. Last year, ICICI Lombard had won the mandate to provide insurance cover of more than $9 billion to Air India run by National Aviation Company of India. The premium paid by the airline was close to $30 million.
Air India insurance is a hull, spares and liability policy covering the aircraft value, passenger liabilities and suites in case of an accident, flood, fire or natural calamity. Like in yester years, the public sector insurance companies have applied in a consortium. A senior official of New India Assurance said, “We would be the lead insurer while Oriental Insurance, United India and National Insurance will be the co-insurers. Since the amounts involved are high, our net capacity will be less than 5 per cent while the three co-insurers will retain less than us. Rest of the policy will be fully reinsured.”
28/06/11 Falaknaaz Syed/mydigitalfc.com
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