Air India set to renew fleet insurance, invites bids
In 2014, Air India had to battle with a 15% increase in premium, most of which was due to the market hardening after the Malaysian Airlines crash.business Updated: Aug 03, 2015 23:40 IST
Air India (AI) has invited bids from direct insurers for renewing its fleet insurance, which expires on September 30.
AI has an exposure, or hull value, of nearly $9 billion, and a fleet size of 127 aircraft, which is one of the largest in South-East Asia. “The acquisition of Dreamliners and aircraft on lease has increased the hull value of insurance in recent times. Last year, AI paid a premium of around $26 million,” a senior official said.
Last year, the airline had to battle with a 15% increase in premium, most of which was due to the market hardening after the Malaysian Airlines crash.
“The markets haven’t yet stabilised after the huge payouts experienced in 2013-14. The recent earthquakes have also destabilised the insurance markets,” another official said.