Air India has secured a $20bn insurance cover for its expanded fleet following the Vistara merger, maintaining existing premium rates, according to sources.
Although the sum insured has risen from $12bn to $20bn, Air India’s premium expenditure will remain steady at approximately $30m.
Despite a global uptick in aviation insurance premiums due to recent accidents, Air India has secured favourable rates. This achievement is attributed to a combination of market softness, strategic negotiations, strong risk management practices, and the airline’s clean claims record, according to sources.
The $20bn insurance policy will provide coverage for aircraft damage resulting from incidents, accidents, or war. It applies to over 300 aircraft operated by Air India and Air India Express.
Additionally, a separate policy covers passenger and third-party liabilities.