Air India to get $10-billion cover from Tata AIG, others

Tata AIG General Insurance and others have received the contract to provide $10bn cover to Air India and its low-cost international subsidiary Air India Express. Under the contract, the airline will pay $30m premium this fiscal year, which began on 1 April. Tata AIG General Insurance, has bagged a significant share of insurance premiums, becoming the “lead insurer.” The leader will receive around 36% of the premium and higher risk compared to the rest of the members in the consortium. According to an industry source, the airline secured a good deal for its entire fleet despite the ongoing Ukraine conflict. The airline was provided an insurance cover of $8bn last year. It plans to increase its cover to $10bn this ongoing financial year as it will likely increase the fleet.