Air India to go for highest insurance cover from Monday

New Delhi: National Aviation Carbon Dioxide of Republic Of Republic Of India (NACIL), which runs the state-run carrier Air India, will travel for a $6.5 billion insurance screen from Monday, the peak coverage coverage by any air hose company in North American Indian sub-continent, said an air hose official.

All state-owned and private coverage houses are expected to offer for the concern while some of them have got already started treatments to hammer confederations for the twelvemonth long coverage time period that volition run out June 30, 2009.

The coverage screen will be provided to a fleet of the incorporate Air India, North American Indian (erstwhile Indian Airlines), Air Republic Of Republic Of India Express and Alliance Air, which in all are about 140 aircraft, said the official.

The 2007-08 coverage contract for Air Republic Of Republic Of India was bagged by a pool led by the state-run New India Assurance Carbon Dioxide Ltd with ICICI's Langobard General Insurance Carbon Dioxide Ltd as co-insurer.

The NACIL have already managed to acquire at least 15 percentage price reduction on existing coverage rates for covering its non-aviation concern in 2008-09. ICICI Lombard, scoring over state-run insurance companies and private companies, won the business.

The entry of private coverage companies into the air power marketplace have intensified competition in the business, resulting in less insurance premium rates. Among the private companies expected to offer for the NACIL legal tender are Bajaj Allianz, General Insurance Carbon Dioxide Ltd, ICICI Lombard, Cholamandalam multiple sclerosis General Insurance Carbon Dioxide Ltd and Reliance General Insurance Carbon Dioxide Ltd.

Four populace sector coverage firms, Asian Insurance Co, New Republic Of Republic Of Republic Of India Assurance Co, United India Insurance Carbon Dioxide and National Insurance Carbon Dioxide predominate the aircraft coverage concern and cover NACIL's rivals such as as Jet Airways (India) Ltd, Kingfisher Airlines Ltd and Deccan Aviation Ltd.

Last year, the exposure value of Air India, before the amalgamation with North American Indian took place, was around $3 billion natural covering around 50 aircraft. But this twelvemonth - with addition in aircraft - the coverage screen would travel up considerably, the functionary said.