Airlines insurance premium may jump after crashes

Written by Press Trust of India | Updated: Jul 25 2014, 06:18am hrs
The already struggling domestic airlines, including the national carrier Air India, may have to pay higher insurance premium this year following the twin tragedy of the Malaysian Airlines, industry officials said.

The largest domestic carrier, IndiGo, is set to renew the insurance cover for its fleet this month, Air India and budget airline GoAir's insurance renewal is due for October, while that of Jet Airways is due in next January.

"Due to hardening of reinsurance rate for the aviation sector, post-two consecutive plane crashes of Malaysian Airlines within a period of four months, the aviation cover may go up when their policies come up for renewal this year," New India Assurance chairman and managing director G Srinivasan told PTI.

These two major crashes have cast their major impact on domestic aviation insurance sector, Srinivasan added.