*Please note that the quotes shown will be from our partners

Air India Invites Bids For Insurance Renewal 

Public sector general insurance companies along with their public sector counterparts are getting ready to bid aggressively for Air India’s $9 billion cover, coming up for renewal on 1 October in London.

Air India is up for renewing its 95% of insurance cover and all general insurers are placing their bids to get the contract. The state-run airline, which floated a global tender for the policy to cover its 126 aircraft, expects to buy the policy at a reasonable discount, given the increased number of underwriters and better risk management practices.

Insurers have to place their bids by September 7 and Air India expects its premium payout to fall because of soft reinsurance market and steep fall in fuel prices after the massive crash in crude prices since the middle of last year.

The company’s global tender posted on its website said, “Air India’s aviation insurance policies are due for renewal effective 1 October 2015 for an agreed fleet value of around $9 billion. The national carrier has invited technical bids in sealed envelopes from Indian insurance companies duly registered with IRDA (Insurance Regulatory and Development Authority of India).” Some of them have already initiated talks to form joint ventures to bid for the business, one of the executives said.

At present, AI has a cover from New India Assurance for a premium of $27 million, a company official told PTI.  

 “Despite a rise in volume in aviation insurance business in the country, the overall premia have fallen as the rates have remained soft in the global markets. Premium rates are softening in the international market as there were no major aircraft accidents except for disappearance of a Malaysia Airlines plane and Germanwings plane crash. Therefore, we are expecting a reasonable discount in the premium,” Martin Stevans, chief underwriting officer at Global Aerospace, a unit of AIG told Economic Times.

Air India, the national flag carrier, is surviving on a Rs.30,000 crore government bailout. The airline, which had a total debt of Rs.40,000 crore as on 31 March, is expected to be debt-free only by 2018-19.

Written By: PolicyBazaar - Updated: 30 December 2020
You May Also Want to Know About
Modi Government Launches 3 Social Security Schemes
Modi Government Launches 3 Social Security Schemes Prime Minister Narendra Modi has launched three new social security schemes (PM Bima Yojana) in Kolkata. The new government schemes (2 insurance products & 1 pension scheme) is aimed at the u...
Insurance Corporate Agents Can Now Sell Policies Of Up To 3 Insurers
Insurance Corporate Agents Can Now Sell Policies Of Up To 3 Insurers  The Insurance Regulatory and Development Authority of India (IRDAI) notified new norms for corporate agents allowing them to tie up with up to three insurers each — life, no...
Maharashtra’s Auto Rickshaw Drivers to Get Pension and Insurance Cover
Maharashtra’s Auto Rickshaw Drivers to Get Pension and Insurance Cover The Maharashtra State Department has decided to give pension to the licensed auto rickshaw drivers above 60 years of age. The scheme will also cover their spouse as well. T...
IRDA Imposes a Penalty worth Rs 10 Lakhs on Tata AIA Life
IRDA Imposes a Penalty worth Rs 10 Lakhs on Tata AIA Life Insurance Regulatory and Development Authority of India (IRDA) today slapped a penalty of Rs 10 Lakhs on Tata AIA Life Insurance for surfeit payment to corporate agents. Additionally, th...
IRDAI Directs SBI Life Insurance Company Ltd. to Refund Commission Excess of Rs.275 Crores to Policyholders
IRDAI Directs SBI Life Insurance Company Ltd. to Refund Commission Excess of Rs.275 Crores to Policyholders SBI Life Insurance Company Ltd., a private life insurer, was directed to reimburse the excess commission of Rs. 275.29 crore to policyhold...
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL