Air India, now under the Tata management, has managed to cut its insurance cost for the ongoing fiscal year by paying a premium of $30 million for the fleets of Air India and Air India Express, with a sum assured of $12 billion.
Last year, the airline had paid a similar premium but for a sum assured of $10 billion for the Air India fleet, a source privy to the development said.
The insurance cover has been provided by a consortium of Indian insurance companies including Tata AIG General Insurance. The Indian companies have reinsured the airline with foreign insurers including AIG Insurance which is an important player in the aviation insurance market.
