 "Aviation insurance gains newer dimensions")
Aviation insurance policy, primarily used to cover aircraft, is now in demand for the allied coverage it offers, such as ground handling and aviation product liability.
Traditional fleet insurance policies cover damages caused by accidents and natural catastrophes. Incidents of hijacking, enemy attacks and invasion are excluded from the policy coverage.
"We are now looking at aviation products, general aviation and aerospace insurance coverage. In the next few months, we will look at airline insurance as well," said M Ravichandran, president-insurance at Tata AIG General Insurance.
The premiums depend on the size of the airport operations, number of airlines using the services and air-traffic data on an every-day basis. With an increase in the number of airports in India and new airline companies entering the market, general insurers say they will have to penetrate the market through expanding into newer routes and cities. This will automatically lead to a growth of aviation insurance market, said the underwriting head of a private general insurer. Aviation insurance policies of non-life insurers also cover general aviation, airport liability, loss of licence, insurance for crew, among others.
Manik Nehra, senior manager (aviation insurance) at Bajaj Allianz General Insurance, said thanks to the new airports, there will be a rise in demand for aviation insurance products such as ground handlers liability and aircraft fuelling liability. "With the growing maintenance, repair and overhaul (MRO) setup and original equipment manufacturers (OEMs) in India, the demand for insurance covers such as "hangar keepers' liability" and "aviation product liability" have gone up.
In the past two years, there has been a growth in the segment and we expect it to continue," he said.
Nehra added the cover limit of the aviation ground handler's liability insurance in India is $2-5 million, which will increase as international carriers enter the market. "With new routes and new cities being added by aviation companies, the demand for aviation insurance will only go up," he added.
Aviation liability coverage includes liabilities arising out of ground handling, delays, passenger injury due to accidents, baggage liability and other third-party risks. The CEO of a mid-size private general insurance company explained there could be more than two insurers in the near future, providing cover for different segments in the same airport.
This, he added, will open the market for other insurers to enter and expand their services. At present, aviation insurance as a whole constitutes much lower than 10 per cent of the total product portfolio of the non-life companies and is a part of their corporate insurance cover.
Traditional fleet insurance policies cover damages caused by accidents and natural catastrophes. Incidents of hijacking, enemy attacks and invasion are excluded from the policy coverage.
"We are now looking at aviation products, general aviation and aerospace insurance coverage. In the next few months, we will look at airline insurance as well," said M Ravichandran, president-insurance at Tata AIG General Insurance.
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Manik Nehra, senior manager (aviation insurance) at Bajaj Allianz General Insurance, said thanks to the new airports, there will be a rise in demand for aviation insurance products such as ground handlers liability and aircraft fuelling liability. "With the growing maintenance, repair and overhaul (MRO) setup and original equipment manufacturers (OEMs) in India, the demand for insurance covers such as "hangar keepers' liability" and "aviation product liability" have gone up.
In the past two years, there has been a growth in the segment and we expect it to continue," he said.
Nehra added the cover limit of the aviation ground handler's liability insurance in India is $2-5 million, which will increase as international carriers enter the market. "With new routes and new cities being added by aviation companies, the demand for aviation insurance will only go up," he added.
Aviation liability coverage includes liabilities arising out of ground handling, delays, passenger injury due to accidents, baggage liability and other third-party risks. The CEO of a mid-size private general insurance company explained there could be more than two insurers in the near future, providing cover for different segments in the same airport.
This, he added, will open the market for other insurers to enter and expand their services. At present, aviation insurance as a whole constitutes much lower than 10 per cent of the total product portfolio of the non-life companies and is a part of their corporate insurance cover.