The Hindu Business Line : IA insurance premium down 18% for 2004-05

INDIAN Airlines has recorded a decline of Rs 23 crore, or about 18 per cent, in the premium that the state-owned airline will have to pay for insuring its fleet of more than 60 aircraft for the year 2004-05 compared with what it paid last year.

The airline is likely to pay an insurance premium of about Rs 107 crore, down from Rs 130 crore paid last year for renewing the insurance cover for its fleet. Its fleet includes three Airbus A-300, 45 Airbus A-320, 11 Boeing-737 and six Dornier aircraft.

Sources said that during the negotiations for renewing the insurance cover for the current year, Oriental Insurance Company Ltd explained to the underwriters the steps that IA had taken towards improving critical operational areas, including engineering, flight safety and training, among others. IA has been recording a decline in the annual insurance premium that it has been paying over the last few years. While during 2001-02, the annual insurance premium was Rs 186 crore, it declined marginally to Rs 182 crore in the following year. The insurance for the airline's fleet is renewed annually and comes into effect from October 1.

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