Air India has saved close to $4 million (Rs.26 crore) in the insurance premium it has to pay for getting its fleet of over 100 aircraft insured for 2017-18, a reduction of 20 per cent in the insurance premium payout for the previous year.
The insurance cover for the AI fleet runs from September to October of the next year. A senior official told that Air India was able to negotiate a lower premium for its good safety record.
The aircraft in its fleet did not suffer any major damage and no major claim was reported during the year.
In the airline industry, if the insurance claim exceeds 40 per cent of the premium paid, there is generally an increase in the premium for the following year.