Mumbai: India’s airlines will likely have to pay 20-25% more in premiums
for renewing the combined US$30 billion of insurance cover on their
fleet—the consequence partly of two disasters that struck Malaysian
Airline System Bhd this year, airline and insurance executive say.
A Libyan militant group’s attack on Tripoli International Airport this month and extremist attacks on Karachi Airport in June have also put pressure on premiums that had already hardened after Flight MH370 with 239 people on board disappeared without a trace in March and MH17 was shot down over Ukraine in July, killing all 298 people on board.
“The reinsurance market is global in nature and any impact on premium rates will spill over to the Indian aviation sector as well,” said Kapil Mehta, managing director at SecureNow Insurance Broker Pvt Ltd. “After the crash of Malaysian Airlines, reinsurers are offering cover of terrorism and geopolitical risks at escalated premium rates
Read news in full 22/09/14 Malaysian Digest
A Libyan militant group’s attack on Tripoli International Airport this month and extremist attacks on Karachi Airport in June have also put pressure on premiums that had already hardened after Flight MH370 with 239 people on board disappeared without a trace in March and MH17 was shot down over Ukraine in July, killing all 298 people on board.
“The reinsurance market is global in nature and any impact on premium rates will spill over to the Indian aviation sector as well,” said Kapil Mehta, managing director at SecureNow Insurance Broker Pvt Ltd. “After the crash of Malaysian Airlines, reinsurers are offering cover of terrorism and geopolitical risks at escalated premium rates
Read news in full 22/09/14 Malaysian Digest
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