New Delhi: The cost of insurance for airlines is on the rise with
international reinsurers charging a hefty premium for underwriting both
war and hull insurances due to a spate of air accidents across the world
in the recent months.
In July alone, there were three major crashes. Malaysian Airlines flight MH17 was shot down over Ukraine, killing some 300 people. A TransAsia Airways flight crashed in Taiwan and an Air Algerie flight crashed in Mali on two consecutive days. Earlier, in March alaysian Airlines' MH370 went missing with some 240 people on board.
"With these new accidents, the reinsurers are charging a hefty premium," an airline executive in the know said. "They are charging up to 250 per cent increase for underwriting war insurance and up to 50 per cent more for underwriting hull insurance." This is the first time since 26/11 that the reinsurers are charging a hefty premium. "The premiums had shot up after the 26/11 attacks, but were stabilising Read news in full 13/10/14 Mihir Mishra/Economic Times
In July alone, there were three major crashes. Malaysian Airlines flight MH17 was shot down over Ukraine, killing some 300 people. A TransAsia Airways flight crashed in Taiwan and an Air Algerie flight crashed in Mali on two consecutive days. Earlier, in March alaysian Airlines' MH370 went missing with some 240 people on board.
"With these new accidents, the reinsurers are charging a hefty premium," an airline executive in the know said. "They are charging up to 250 per cent increase for underwriting war insurance and up to 50 per cent more for underwriting hull insurance." This is the first time since 26/11 that the reinsurers are charging a hefty premium. "The premiums had shot up after the 26/11 attacks, but were stabilising Read news in full 13/10/14 Mihir Mishra/Economic Times
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