A-I ups sum assured to $4 bn, forks out higher premium

Mumbai : With more passengers to fly and expansion of its fleet, state-owned Air-India has, after a long time, increased its annual sum assured to $4 billion and accordingly has paid a higher premium of around $14.5 million at the time of its insurance renewal in 2006-07.
The renewal came into force on July 1. In 2005-06, when its renewal was delayed by three months, the long haul carrier had an amount of $ 13.9 million.
Led by New India Assurance, all the state-owned general insurance companies are acting as primary insurers for the company in 2006-07.
Usually, the long haul carrier has a sum assured of $2.8 billion consisting of passenger liability and hull cover. Air-India currently has a fleet of 44 aircraft and has ordered another 68 planes to be inducted over a period of four years. However, the company will add only 7 more aircraft by June 30, 2007 for which the cover has been taken at the time of renewal.
07/07/06 Neelasri Barman/Financial Express

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