The coverage is expected to be provided for one year, beginning September
Reliance General Insurance led consortium has sealed a mandate for providing insurance coverage to Air India for $24.3 million. The coverage is expected to be provided for one year, beginning September – reported Business Standard.
New India Assurance has written to the chief vigilance officer putting a question mark over the securities placed by Reliance General, once the latter got the mandate.
The private sector consortium was represented by Reliance General Insurance with HDFC Ergo, Bajaj Allianz and Iffco Tokio General Insurance as partners, while the public sector consortium was led by New India Assurance.
Reportedly, New India Assurance, in an earlier representation, stated that the securities placed by Reliance did not fit the criteria. Reliance will retain 10% of the risk while it will place the rest 90% in the international market.
The cover size has increased to $8.59 billion compared to $6.39 billion in 2008-09. The state-owned airlines has given $24.3 million premium to insure 134 aircraft. The public sector bidder has lost this mega cover after seven years. Last year, the airline had paid $19.5 million to insure 140 aircrafts, quoted the magazine.