A-I adopts new rating system to select insurer

Mumbai: Air-India has further revamped its eligibility criteria for selecting its insurer for 2006-07. The account, comprising 38 aircraft (the airline has ordered another 62 aircraft) is due for renewal on July 1.
The sum assured consists of over $1.5 billion liability and $250 million worth hull cover. New India Assurance, the largest domestic general insurer, is the current insurer of A-I and has paid Rs 100 crore to settle some claims arising out of the Mumbai floods last year.
The carrier has now introduced a rating system for screening the bids, a move that has raised eyebrows in the industry.
The rating system takes into account different aspects of the insurer’s operations including net worth and growth in premiums.“An insurer needs to score minimum 60% to be selected,” said the A-I paper inviting general insurers.
Sources, however, pointed out that an insurance company covering a high risk company like A-I should have much more qualifying points.
24/04/06 Sitanshu Swain/Financial Express

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