The woes for Air India don’t seem to wean off this year. After suffering a series of operational issues, the insurance segment now brings bad news for the airline. AI is charged 15% more for its annual insurance premium effective from the October renewal. The premium this year would be Rs 160 crore as compared to Rs 136 crore paid last year.
The reasons cited are primarily due to the increase in the fleet size and the tragic Mangalore air –crash. Apart from this some stringent norms life upfront payment of claims as well as low margin is also considered as a reason. Apart from the higher premium, AI also lost much of its charm amongst insurers as evident from a drop of bids made this year. ICICI Lombard and New India led public sector insurers have made bids for the tender of AI this year. The insurance policy would cover Aviation hull, terror and war and the deductible insurance.
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