The Hindu Business Line : Oriental wins fog cover mandate from Air India

Oriental Insurance has won the mandate to provide fog cover to Air India ahead of two other private and pubic sector insurance companies that were in the fray. This is the first time that Air India has gone in for fog insurance.

"Oriental Insurance will provide up to Rs 20 lakh in the event of fog affecting normal operations of Air India flights. The funds would be used to cover expenses incurred by the airline on account of re-routing of the aircraft and providing hotel accommodation for passengers," official sources told Business Line.

The cover is to remain in place till the end of February next year and is effective on flights being operated only from Delhi. The insurance cover, however, does not include the first three days of fog and the total liability permitted under the cover is Rs 1.5 crore.

During the current year, there have been at least two days during which normal flight operations have been affected due to inclement weather conditions over Delhi. On the night of December 26 and during the early morning hours of the following day, visibility was so poor that normal flight operations were affected for more than 11 hours.

Airline officials were, however, tight lipped on the premium being paid. "The premium is reasonable," a senior airline official said when asked on the payout that Air India would be making for the cover.

In earlier years, Air India had transported passengers from Delhi to Mumbai before carrying them onwards to their international destinations so as to mitigate fog problems faced in the capital.

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