Wednesday, May 21, 2014

Air India Invites Bids For Insurance For Its 105-Aircraft Fleet Worth $9bn

The national carrier Air India on Wednesday invited bids from Indian insurance firms for renewal of insurance for its entire 105-aircarft fleet worth a whopping 9 billion US dollars, even as it is in the process of acquiring the remaining 13 of the 27 Dreamliners it has ordered.As per officials of Air India, the bids have been invited on standalone basis or as a consortium. And, it would have to be submitted by June 4, 2014.

The process has begun to firm up the companies, which would provide the insurance cover for the fleet, due for renewal from October 1," the officials informed.The aircraft fleet insurance covered would include aviation risk, hull all risk and hull war risk among other areas, they added.

Two years ago, two consortia had bid for the insurance coverage of the airline's fleet. One was a grouping of New India Assurance (as the lead insurer), Oriental Insurance, National Insurance and United India Insurance, while the other one was the consortium of HDFC Ergo General Insurance, SBI General Insurance and ICICI Lombard.

The finance ministry has made it clear that there would be no purchase preference support given to PSU insurers in order to provide a level-playing field to their private counterparts who bid.

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