Air India, has taken a Rs. 60,800 crore ($8 billion) cover for Air India by paying Rs. 266 crore premium to insurance companies, including Tata AIG General Insurance.
The airline managed to get a better deal as it valued its fleet lower by almost $2 billion. According to the new policy, the airline will not be able to fly over Russian and Ukraine air space due to the ongoing war.
The new cover, effective April 1 for a year, will be marginally higher than the Rs. 258 crore paid in the last financial year by the airline under its previous owner, the Indian government, said a source close to the development. In the last financial year, the airline had taken a cover of Rs. 76,000 crore ($10 billion). The policy also includes passenger liability in case of any mishaps.
Air India has a fleet of 117 aircraft, while Air India Express has a fleet of 24 narrow body aircraft.
