Tata AIG General Insurance Company, will join the race to provide insurance cover for the Indian conglomerate’s airlines, including Air India. Indian state-owned companies presently provide insurance cover to the airlines and re-insure the assets with foreign firms.
AIG is already the biggest reinsurer for Air India, counting among international consortium providing cover to the airline’s 117-strong fleet. With its Indian partner now owning Air India and Air India Express, it will make a bid to get the business, said a source close to the development.
A source said Air India is insuring its fleet by paying a premium of Rs. 118 crore in financial year 2021 on a standalone basis as compared to Rs. 158 crore paid in the previous financial year ending March 2020.
Government owned insurance companies retain only one per cent of the insurance premium and pass on the rest of the premium and risk to an international consortium so as to de-risk their own books.
