Mumbai: India’s national carrier Air India’s insurance renewal cost has almost doubled to around $28 million for the year 2018-19 as a host of adverse factors including the recent crash of an Ethiopian Airlines aircraft have put an end to the days of discounts in the segment.
The insurance renewal deal for the national carrier’s fleet of 180 aircraft, with a sum assured of $12 billion, the largest Indian aviation insurance account, is currently getting concluded in the London market and would be effective from April 1. Air India’s insurance renewal also includes $30 million passenger liability cover. Considering the hardening of the market, Air India which normally renews its insurance account in October of every year, had sought six month extension for its existing cover in October.
Air India is purely a reinsurance driven account and almost over 95 per cent of the cover is reinsured in the London market. Air India’s renewal premium had constantly fallen for the last few years till 2017-18 when it had availed a discount of 20 per cent and had paid premium of $ 14 million. The national carrier had shelled out a total premium of $18.38 million in 2016-17, which was 30 per cent lower than the previous year’s premium.
New India Assurance, India’s largest general insurance player, is the lead insurer of the Air India deal while reinsurance deal is led by the US major AIG.
29/03/19 George Mathew/Indian Express
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The insurance renewal deal for the national carrier’s fleet of 180 aircraft, with a sum assured of $12 billion, the largest Indian aviation insurance account, is currently getting concluded in the London market and would be effective from April 1. Air India’s insurance renewal also includes $30 million passenger liability cover. Considering the hardening of the market, Air India which normally renews its insurance account in October of every year, had sought six month extension for its existing cover in October.
Air India is purely a reinsurance driven account and almost over 95 per cent of the cover is reinsured in the London market. Air India’s renewal premium had constantly fallen for the last few years till 2017-18 when it had availed a discount of 20 per cent and had paid premium of $ 14 million. The national carrier had shelled out a total premium of $18.38 million in 2016-17, which was 30 per cent lower than the previous year’s premium.
New India Assurance, India’s largest general insurance player, is the lead insurer of the Air India deal while reinsurance deal is led by the US major AIG.
29/03/19 George Mathew/Indian Express
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