Insurance cos to bid jointly for Air India cover

Mumbai: Public and private sector insurance companies are forming alliances to bid for state-run carrier Air-India’s aviation cover worth $3.5 billion.
To counter intense competition and get better rates from reinsurers, public sector insurance majors — New India Assurance, Oriental Insurance, United India Insurance and National Insurance — have decided to float a consortium to bid for Air-India’s cover.
Private insurers are considering a similar alliance which will include Bajaj Allianz and ICICI Lombard.
Air-India has invited technical bids for aviation insurance for its aircraft fleet worth $3.5 billion this year, against $3.2 billion last year. The government-owned airline currently has 48 aircraft, the largest fleet size since its inception.
M Ramadoss, chairman and managing director, Oriental Insurance Company, said the consortium would share the risk equally.
The aviation cover consists of aviation hull and spares liability policy, hull war cover, policy deductible cover and war excess liability cover.
20/02/07 Falaknaaz Syed & P R Sanjai/Business Standard

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Categories: air india feb 2007