Air India gets 20% discount on annual insurance premium

Debt-ridden Air India has got a 20 per cent discount on insurance premium while renewing its annual policy starting October, a senior official said here today.
Air India, whose new policy will begin from October 1, paid a premium of USD 22.5 million during the latest renewal as against USD 27 million in 2014-15, the official said.
The international aviation insurance market, whose losses had mounted last year, has returned to a softer cycle during the current year, which has helped Air India.
Air India has 141 aircraft valued over USD 9.6 billion and had a few claims in 2014-15.

A consortium of four domestic state-owned general insurers led by New India, which already had Air India's account for 2014-15, has bagged the deal for the next year too, the official said.
It is yet to be decided who among the four state-owned general insurers will get which part of the insurance cover to be provided to Air India for 2015-16.

American Insurance Group (AIG) is the lead reinsurer, while there are 60 global reinsurers including country's sole reinsurer GIC Re and Swiss Re.
"We are waiting for receiving the final letter from Air India before we internally distribute the risk among the four General Insurance (Public Sector) Association (GIPSA) companies," a New India official told PTI.

"Even though there was no major claim for the existing year, we did settle claims amounting to around USD 12 million during the year," he said.