Mumbai: National carrier Air India has renewed its insurance cover for 2017-18 for USD 14 million, which is a 20 percent discount over 2016-17.
The new policy cover came into force from October 1 and covers 142 aircraft of the flag carrier which includes 109 planes of Air India, 23 of its low cost subsidiary Air India Express and 10 small planes of its regional arm Alliance Air.
The sum assured, which covers passengers and hull liability, stands at USD 10.4 billion.
Last year, the national carrier had shelled out a total premium at USD 18.38 million, which was 30 percent lower than the previous year's premium.
Over the last two years, the disinvestment-bound airline has availed discounts of over 40 percent in its insurance premium.
The largest non-life insurer New India is the lead insurer along with the other three state-owned general insurers, while the global aviation insurance leader AIG acted as the lead reinsurer along with 30-40 reinsurers across the world.
"Air India's professional and timely action was a great contributor, and support of New India Assurance and their understanding was a winning strategy," Prabodh Thakker, chairman, Global Insurance Brokers, which acted as an intermediary in renewing the AI cover, told PTI.
"A good planning, timely action and low claims which is called good loss-record of the airline till the placement saved Air India," he said.
He refused to share any further details citing a non-disclosure agreement.
Air India Express had a mishap in Kochi in September, amounting to a claim of USD 10 million. But, a New India official said it would take a hit of merely 3 percent of claim amount on the company's balance sheet as all such aviation policies are reinsurance-driven.