Hindustan Aeronautics Limited makes Rs. 273-cr insurance claim

HAL has filed an insurance claim of Rs 273 crore on an under-production Sukhoi jet that recently crashed during its test flight near Nashik. This is the first of its kind insurance claim involving a fighter jet in India. The claim was filed with a group of re-insurers led by GIC Re and sole insurer New India Assurance. Though usually defence and military projects and materials are not insured, HAL has insured the Sukhois as they were in under-production stage and these jets are yet to be inducted into Indian Air Force, said an NIA official. The insurance cover is valid only till the aircraft is handed over to the Air Force in view of the security issues after induction. During 2017-18, NIA was the sole primary insurer for the Sukhoi project with a total sum assured of Rs 11,240 crore. HAL has paid a premium of around Rs 18-19 crore during the year and may have to shell out 20 per cent higher premium next year due to the Nashik claim, officials said.