The insurance contract for Air India's 105-strong fleet comes up for renewal on October 1 at an estimated premium of about $25 million.
The New India Assurance-led consortium has United India Insurance, Oriental Insurance and National Insurance as co-insurers. While, ICICI Lombard General Insurance-led group has HDFC Ergo and Reliance General as co-insurers.
Following recent rise in aviation mishaps such as a series of Malaysian Airlines tragedy, premiums have increased, pushing up the bill for insurers.
Air India's current insurance policy, issued by New India Assurance, includes a $9.5-billion hull cover and a combined single liability of $1.5 billion.