Air India brings in Reliance General for fleet insurance
State-run carrier Air India is believed to have roped in Reliance General Insurance, part of Anil Ambani group, as the insurer for its entire fleet.business Updated: Sep 30, 2009 21:06 IST
State-run carrier Air India is believed to have roped in Reliance General Insurance, part of Anil Ambani group, as the insurer for its entire fleet.
This is the first time that the insurance cover for Air India fleet has gone to a private insurer. Till date the same was being underwritten by National Insurance companies as a consortium.
The new cover is provided by a consortium led by Reliance General Insurance with HDFC Ergo, Bajaj Allianz and Iffco Tokyo General Insurance being part of the consortium.
While Reliance General spokesperson declined to comment and Air India spokesperson was not available for comments, sources said that Air India has also paid its first premium as part of the tender process which warrants the premium to be paid to the insurance company in four installments during the tenure of the cover.
The new cover, to remain in force for one year, would come into force from midnight today and cover all 167 aircraft of Air India across the globe.
Air India is believed to have completed all formalities for the cover earlier this week and has informed all international airports of this new cover.
"Technically, no AI long haul flights could have taken off today if the cover was not in place and the destination airport not informed of the details of the new cover in advance," sources said.
Reliance General consortium is said to have quoted a premium of about 24.2 million dollars for a total insurance cover of 8.5 billion dollars. The insurance would cover aircraft, passenger and third-party claims.
Earlier, public sector insurer New India Assurance had accused National Aviation of Company of India of India Ltd (NACIL), the holding company for Air India, of flouting the tender norms for about Rs 45,000-crore insurance cover for Air India's fleet to favour the consortium led by Anil Ambani group firm, but the latter refuted the allegations.
While NACIL has been silent on accusations contained in a letter sent to it by New India Assurance, Reliance General Insurance had said it had supplied all the information and documents desired by the aviation company for the tender.
In its letter to NACIL, New India Assurance Co had said, "Tender norms laid down by NACIL have not been adhered to and have been relaxed to the disadvantage of two bidders."