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Monday 13 October 2014

In festive season bargain, Air India buys insurance for cheap

New Delhi: If e-commerce sites vied for eyeballs this festive season, insurers lined up with an array of offers for national carrier Air India, with the carrier walking away with an extremely lucrative $28 million cover for its 122 aircraft fleet valued at nearly $10 billion.

"We had a tough time in getting a good deal for insuring the fleet. As the market has been aggressively priced after the tragic Malaysia Airline incidents and bombings at airports, the premium charged by insurers in the international market was very high," a senior Air India official told IANS.

The Indian capacity to bargain saw the airline come out smiling in the main London-based insurance market.


"The hull and war insurance premium has escalated over the recent years. Our $28 billion cover is the most price efficient and best suited for us," said the official.

Recently, the aircraft war insurances prices have appreciated by 200-250 per cent in the international market and that of hull insurance by 25-30 per cent.

New India Assurance has provided the cover, with AIG being the main underwriter.
Read news in full 12/10/14 IANS/Economic Times

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