The soon to be launched airline Vistara, from the Tata Group-Singapore Airlines combine, has secured its insurance cover from the country's largest non-life insurer New India Assurance, for Rs 5 crore.
"We have provided insurance cover to both the aircraft of Vistara. We are hopeful of providing cover to three more planes the airline is likely to bring in by next March," a New India Assurance official on Friday. However, the airline did not respond to a calls.
The premium amount fixed for providing the insurance cover to the five aircraft is Rs 5 crore. The insurance cover per plane under the hull segment is USD 100 million, whereas it will be up to USD 350 million under the liability segment, the official said.
Full service airline Vistara, which is a 51:49 joint venture between the Tata Group and Singapore Airlines, is likely to launch operations this month or early next month.
Last Tuesday, Air India had renewed insurance cover for a little over USD 27 million for its fleet of 132 aircraft, at a premium of 17.5 percent over 2013 from a consortium of public sector insurers led by New India Assurance and private sector firms led by ICICI Lombard, while reinsurance was renewed by AIG.
Air India has a fleet of 132 aircraft -- 108 with itself and 24 with its two subsidiaries -- 17 with Air India Express and seven with Alliance Air.
Aviation premiums have gone up this year after the two Malaysian Airlines tragedies in March and July, besides two other crashes on the Africa continent during the year.
Air India's current insurance policy, issued by New India Assurance, includes a USD 9.5-billion hull cover and a combined single liability of USD 1.5 billion. Hull all-risk insurance covers any damage to the body of the aircraft caused by an accident, while war risks, which is a part of hull cover, insures against wars, invasions, insurrection, rebellion and hijacking.
In addition, the insurance covers liability toward passengers and covers legal protection against legal suits.
This was the first time in four years that Air India had to pay a higher renewal premium. In the past, renewal premiums had been falling by 10 % on an average.
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