Mumbai: Despite hardening insurance market for airlines globally following some major tragedies this year, national carrier Air India has been able to renew its cover with just 15 per cent rise in premium for its 132— aircraft fleet.
According to sources, the demand was for 25 per cent hike over the existing premium but insurers had to eventually come down to 15 per cent over the soon-to-expire policy.
The sources in the London market, where the reinsurance for the cover is being decided, have confirmed that Air India’s insurance will be renewed in a day or so, and it can keep flying from October 1.
They have also confirmed that to renew the policy, the airline will be paying US $ 26.75 million as premium, which is 15 per cent more than the existing cover which expires on September 30.
Air India, which has a fleet of 132 aircraft — 108 with itself and 24 with its two subsidiaries — 17 with Air India Express and 7 with Alliance Air, refused to comment.
28/09/14 PTI/Business Line
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According to sources, the demand was for 25 per cent hike over the existing premium but insurers had to eventually come down to 15 per cent over the soon-to-expire policy.
The sources in the London market, where the reinsurance for the cover is being decided, have confirmed that Air India’s insurance will be renewed in a day or so, and it can keep flying from October 1.
They have also confirmed that to renew the policy, the airline will be paying US $ 26.75 million as premium, which is 15 per cent more than the existing cover which expires on September 30.
Air India, which has a fleet of 132 aircraft — 108 with itself and 24 with its two subsidiaries — 17 with Air India Express and 7 with Alliance Air, refused to comment.
28/09/14 PTI/Business Line
