The consortium led by New India Assurance has bagged $10.5 billion or around Rs 57,750 crores Air India contract for insuring its more than 120 planes. The premium works out to $24 million per annum, making the insurance deal one of the biggest in South and Southeast Asia. The contract will come into force from first October 2012.
Air India has got a better deal, a 7% reduction in premium amount, as its safety record was good. Saving on the premium will also help Air India in its bid to turn around.
The consortium led by New India Assurance has bagged this contract by beating another consortium, led by ICICI Lombard General Insurance. Last year, also Air India had insured its planes with New India Assurance.
Chartis Insurance UK Ltd continues to be the re-insurer for the deal.
Air India could fetch a good deal despite civil aviation regulator directorate general of civil aviation launching a safety audit on Indian careers, including Air India Express, a unit of Air India.