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.

Air India (AI) has invited bids from direct insurers for renewing its fleet insurance, which expires on September 30.

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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.