Air India’s insurance costs likely to escalate

Mumbai: State-owned Air India is likely to cough up higher premium when it renews its insurance contract on October 1. Three consecutive large airline losses — downing of Malaysia Airlines flight MH17 over eastern Ukraine last week, the earlier disappearance of MH370 and hull losses due to fighting at Tripoli airport — are likely to harden reinsurance rates.

Fewer aviation losses in recent years had resulted in a decline in aviation reinsurance rates but the situation is likely to be reversed now, say insurance officials.

Air India's insurance policy is the country’s largest aviation policy and is due for renewal on October 1.


Two consortiums of non-life insurance companies have submitted bids for providing insurance cover to Air India. One group consists of public sector general insurance companies led by New India Assurance, with United India Insurance, Oriental Insurance and National Insurance being co-insurers. The other group consists of private sector insurance companies, with ICICI Lombard General insurance as the lead insurer, while Reliance General Insurance and HDFC Ergo General Insurance are co-insurers.
Read news in full 23/07/14 Falaknaaz Syed/mydigitalfc.com