June 30, 2006
PSU insurers bag AI insurance cover
A consortium of public sector insurance companies, led by New India Insurance, has bagged the insurance cover for Air India, reports Business Line.
It has been learnt that the airlines managed to negotiate a 15-16% discount in the lead rate. However, it is expected that the premium payout for getting an insurance cover for Air India and Air India Express would be around USD 15 million during the current year.
The airline has sought an insurance cover for over five million passengers and an aircraft fleet of more than 50 this year, up from 44 aircraft last year. It has also taken an insurance cover for the six new Boeing 737-800 aircraft that are scheduled to join Air India Express fleet during the year and for the five new Boeing 777 aircraft that are scheduled to join the Air India fleet as per the original delivery schedule drawn up with the aircraft manufacturer.
The current insurance cover has estimated that the average fleet value would increase to USD 4 billion from USD 2.8 billion during the previous year. The AI insurance cycle runs from July 1 to June 30