Only ICICI Lombard & New India consortium bid for Air India’s fleet cover

Kolkata: The largest aviation cover in India, for Air India's fleet, estimated at $9 billion (Rs 40,500 crore), has attracted only two bidders - from ICICI Lombard and a consortium of New India along with three other public sector insurers.
Air India insurance policy is a hull, spares and liability policy, which covers the aircraft value, passenger's liabilities and suites in the case of an accident, fire, flood or natural calamity. Brokers and insurers say strict norms, including upfront payment in case of claims, and low margins, as it is largely reinsurance-driven, have led to such low participation. In 2010-11, ICICI Lombard bagged the cover with a premium of $30 million (Rs 135 crore). Air India's fleet is valued at approximately $9 billion. The bids invited are for 2011-12.
Rajive Kumaraswamy, head of reinsurance at ICICI Lombard, confirmed that the company has submitted technical bids for the cover during 2011-12. "We have submitted technical bids. The existing cover comes up for renewal on October 1. Following this, we will submit the financial bids." New India Assurance general manager IS Phukela also confirmed that the insurer is the lead insurance company along with United India, National Insurance , Oriental Insurance and SBI General Insurance.
12/07/11 Debjoy Sengupta/Economic Times

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