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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
Tushar Srivastava
A-Mumbai-bound-Air-India-flight-with-over-250-persons-on-board-was-forced-to-return-to-Newark-Liberty-International-Airport-and-make-an-emergency-landing-due-to-a-serious-engine-problem-Sattish-Bate-HT-File-Photo
A-Mumbai-bound-Air-India-flight-with-over-250-persons-on-board-was-forced-to-return-to-Newark-Liberty-International-Airport-and-make-an-emergency-landing-due-to-a-serious-engine-problem-Sattish-Bate-HT-File-Photo

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.