Fewer insurers bid for renewal of Air India policy cover

Mumbai: Premiums for Air India's annual insurance policy, coming for renewal on October 1, are likely to go up marginally to around $30 million (Rs 160 crore). This could be the highest ever premium outgo for the largest airline operator in the country. Last year, its premium outgo was $28 mn.
The marginal rise is in sync with the higher rates in the foreign market compared to last year and depreciation of the rupee. The fact that there were no major claims over the past two years and it is operating with about the same fleet size was part of the reason behind stable premium rates, sources said.
“With reinsurance rates firming up by five to 10 per cent around the world, the premium rates would go up marginally,” said reinsurance brokers directly associated with the deal. “Last year insurers had quoted higher rates on the account of operational inefficiencies of the national (government) carrier and some stringent conditions of the tender. However, this year there are no such issues,” added an insurance official.
06/07/12 Niladri Bhattacharya/Business Standard

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Categories: Air India Jul 2012