Within months of the Tata group taking over Air India, the airline has taken a ₹60,800 Crore ($8 billion) insurance cover by paying ₹266 Crore in premium to a cluster of insurance companies, including Tata’s own insurance arm.
This new cover, which will protect over 141 Air India aircraft, is marginally more expensive than last year’s cover and is likely to go up further by 20% on account of the ongoing Russia-Ukraine war.
So, what does this policy actually cover?
Aviation Insurance provides comprehensive coverage to airlines against a variety of risks common in their operation. This policy is divided into several individual covers like:
- Passenger Liability Insurance, which covers injuries or death caused to passengers during an accident
- Public Liability Insurance, which covers damage caused to third party property, such as houses, car, airport facility, or other aircraft
- Ground Risk Hull Insurance, which covers physical damage to the aircraft body while it is on the ground, in motion, or stationary
- In-flight Insurance, which covers the aircraft against damage during all phases of flight