New India, ICICI consortia to fight for A-I insurance pie

New India Assurance-led public sector insurance consortium and ICICI Lombard-led private insurers will fight for state-run Air-India's aviation cover worth $3.5 billion.

The two have already submitted their technical bids to Air-India and are expected to place financial bids in May.

Three other PSU insurers""Oriental Insurance, United India Insurance and National Insurance""will team up with New India Assurance while Bajaj Allianz, IFFKO-Tokyo and Reliance General Insurance will join hands with ICICI Lombard.

Air-India has invited financial bids for aviation insurance for its aircraft fleet worth $3.5 billion this year, against $3.2 billion last year. The government-owned airline currently has 48 aircraft, the largest fleet size since its inception.

"Air-India will shortly give a presentation to underwriters of these insurers in London. The carrier is expecting a discount of over 20 per cent compared to last premium. Last year, we had got a discount of 18 to 20 per cent on the premium payable," sources from Air-India said.

Ninety per cent of aviation liability policies are reinsured in the London reinsurance market, where the risks are shared by reinsurers. The risk-sharing keeps the market on even keel, an industry expert said.