ICICI Lombard to give Air India insurance

ICICI Lombard to give Air India insurance
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First Published: Fri, Sep 24 2010. 11 45 PM IST
Updated: Fri, Sep 24 2010. 11 45 PM IST
Mumbai: ICICI Lombard General Insurance Co. Ltd, a joint venture between ICICI Bank Ltd and Canada’s Fairfax Financial Holdings Ltd, has won the mandate to offer insurance cover of $9.1 million for Air India, run by National Aviation Co. of India Ltd, or Nacil, for a year starting 1 October, according to a senior executive with the insurance firm. A senior Air India executive confirmed the development. Both executives declined to be named because of the confidential nature of the development. Chartis Insurance UK Ltd is the reinsurer for the deal.
Air India had called for insurance cover for its fleet as the current cover for $8.9 bilion expires on 30 September. The new cover comes after an Air India flight crashed in Mangalore airport, killing 158 passengers and crew.
Abir Pal, vice presidnet (corporate communications) at ICICI Lombard decline to comment.
“There is a marginal increase of seven percent in the premium mainly due to higher aircraft exposure value which would be in the range of $9 billion next year,” the Air India official said. He cited the Mangalore air crash and other major aircraft accidents globally for the increased cover. Air India paid $24.3 million in premium for the earlier cover.
While ICICI Lombard bid for the mandate alone, other public sector insurance firms such as New India Assurance Co. Ltd and SBI General Insurance Co. Ltd formed a consortium for the bid.
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First Published: Fri, Sep 24 2010. 11 45 PM IST