Mumbai, Delhi airports get Rs 5k cr cover

Mumbai: For the first time, the privatised Mumbai and Delhi airports, being modernisedin a big way, have taken mega insurance cover worth Rs 3,000 crore and Rs 2,000 crore, respectively, to protect the balance sheets of private operators.
The deal for the Mumbai airport, being modernised by the GVK-led consortium, has gone to Chennai-headquartered United India Insurance. The one for the Delhi airport, being upgraded by a consortium headed by GMR, has been bagged by Kolkata-headquartered National Insurance.
The two deals, brokered by Aon Global, involve complex risks like third party legal liability, terrorism and advance loss of profit. Sources said the covers, structured at a cheaper cost, would meet any financial losses of the airports out of these risks.
17/07/06 Sitanshu Swain & Neelasri Braman/Financial Express

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