A series of air-crash incidents have led to insurers incurring a loss of Rs 2,500 crore in India's aviation sector. These incidents include both major and minor instances in the Indian air space.
Industry sources said the period 2014 to 2019 has been one of the worst five-years for the aviation insurance segment.
The size of the Indian aviation insurance market is estimated to be around Rs 5,000-6,000 crore.
Aviation insurance provides coverage for hull (aircraft) losses as well as liability for passenger injuries, environmental and third-party damage caused by aircraft accidents.
Depending on the type of company, there are various type of aviation insurance products available in the market. These include insurance for the crew members, passengers, spares (aircraft equipment), hull all risk cover for any damage to the aircraft.
For small aircraft flying passengers for business or leisure, there are niche aviation insurance covers available for loss of life and aircraft damage. Helipads are also eligible for insurance cover under this category.
Depending on the size of the cover, the premium range from 0.002 percent to 0.004 percent of the sum assured. There is a revision in annual premiums depending on the claims in the previous fiscal.
In India, the past few incidents include damages to aircraft parts of Jet Airways and SpiceJet in separate incidents, apart from a Su-30 fighter jet crash and KingAir C-90 crash among others have led to losses of around Rs 2,500 crore.
12/03/19 M Saraswathy/Moneycontrol.com
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Industry sources said the period 2014 to 2019 has been one of the worst five-years for the aviation insurance segment.
The size of the Indian aviation insurance market is estimated to be around Rs 5,000-6,000 crore.
Aviation insurance provides coverage for hull (aircraft) losses as well as liability for passenger injuries, environmental and third-party damage caused by aircraft accidents.
Depending on the type of company, there are various type of aviation insurance products available in the market. These include insurance for the crew members, passengers, spares (aircraft equipment), hull all risk cover for any damage to the aircraft.
For small aircraft flying passengers for business or leisure, there are niche aviation insurance covers available for loss of life and aircraft damage. Helipads are also eligible for insurance cover under this category.
Depending on the size of the cover, the premium range from 0.002 percent to 0.004 percent of the sum assured. There is a revision in annual premiums depending on the claims in the previous fiscal.
In India, the past few incidents include damages to aircraft parts of Jet Airways and SpiceJet in separate incidents, apart from a Su-30 fighter jet crash and KingAir C-90 crash among others have led to losses of around Rs 2,500 crore.
12/03/19 M Saraswathy/Moneycontrol.com
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