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Ashwini Phadnis

The State-owned airline's good track record during the year, and the fact that there was no "no-claim" pending with the insurers helped IA negotiate a lower premium rate, sources said.

New Delhi , Sept. 30

INDIAN Airlines has seen a more than 28 per cent reduction at Rs 77 crore in the insurance premium it will pay during 2005-06 for taking a cover for its fleet of 65 aircraft.

"IA will pay an insurance premium of around Rs 77 crore for the current year, which is 28.5 per cent lower compared to Rs 107 crore paid during the previous year," sources told Business Line. The State-owned airline's good track record during the year, and the fact that there was no "no-claim" pending with the insurers helped IA negotiate a lower premium rate, sources said.

The airline's insurance cover extends from October till end September of the following year.

This is the second successive year that the airline has been successful in negotiating a lower insurance premium payment. During 2004-05, there was an 18 per cent decrease in the insurance premium paid compared to the previous year.

The insurance cover for 2005-06 was negotiated by a consortium of four public sector insurance companies led by New Indian Insurance. Senior officials of the Government and IA were also present at the talks that were held in London.

The airline has a mixed fleet of three Airbus A-300, 47 Airbus A-320, 11 Boeing 737 and four ATR aircraft.

The news about lower insurance premium comes days after the Government gave IA to purchase 43 Airbus aircraft a proposal that has been pending for close to four year.

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