Air India crash risks fueling up to 30% jump in insurance premiums
Airline insurance costs in India are likely to increase significantly. This follows a major aviation accident. Experts predict premiums could rise by 10% to 30%. The Air India crash in Ahmedabad is a key factor. The crash resulted in substantial insurance claims. Global aviation insurance rates are also expected to harden. This increase will affect airlines worldwide.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Indian insurance policy sellers expect the cost of coverage for airlines to spike as much as 30% after the deadliest aviation crash in more than a decade.Sajja Praveen Chowdary, director at Indian broker Policybazaar, expects premiums for hull, war-risk, and liability coverage to increase by 10% to 30% in the next renewal cycle. Rohit Boda, group managing director at broker J.B.Boda Group, predicts a rise of 10% to 25%.Premium hikes of that scale would be larger than previous crashes, given the enormity of the Air India accident, the brokers said. The crash killed 241 on board and dozens on the ground when it smashed into a residential area in the city of Ahmedabad on June 12.Insurance claims for the Air India crash are expected in the realm of $475 million, including those for the aircraft's hull and engine as well as additional liability for loss of life, Bloomberg News reported earlier. Air India's fleet is insured for about $20 billion in total, with an annual premium near $30 million, according to data from Policybazaar.'A catastrophe of this scale will contribute to hardening of global rates,' said Chowdary, director at Policybazaar for Business.Globally, crashes accounted for the majority of the $15 billion in aviation claims during the five year period ended 2024, according to a report by Allianz SE. Growth in air travel, fueled by Asia-Pacific and North America, was expected to drive premiums to more than $8 billion, according to the report.The insurance premium increase would be for all airlines, said people familiar with the matter, who asked not to be identified discussing private matters. They added that the impact will be redistributed to airlines across the globe.The premium increase is expected to be large, and further loss of aircraft could drive premiums to a record, the people said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
38 minutes ago
- Hans India
H-1B Visas Cancelled for 3 Indian Workers at Abu Dhabi Airport
Three Indian workers had their H-1B visas cancelled at Abu Dhabi airport. They could not enter the United States and were sent back to India. This happened because they stayed in India longer than allowed. One stayed for almost three months, and the others stayed more than three months. Even though they showed proof of emergencies and letters from their companies, their visas were still cancelled. The rules say H-1B workers should not stay outside the US for more than 60 days without permission. An H-1B visa lets people work in the US in special jobs like engineering and IT. The visa is given by the US government with help from the worker's employer. People on social media said that it is important to follow the rules about how long you can stay outside the US. If you break the rules, your visa can be cancelled and you can be sent back.
Hindustan Times
40 minutes ago
- Hindustan Times
IndiGo air hostess surprises parents on board as lead cabin crew in touching video: 'Dream flight'
An Indian company's offer letter went viral for its strict dress code, mandating tucked shirts, ribboned hair, and specific attire for men and women. The low-paying developer role's rigid rules sparked social media outrage, with users criticizing the seemingly school-like, misogynistic workplace regulations.
Economic Times
43 minutes ago
- Economic Times
Indogulf Cropsciences IPO to open on June 26; Price band set at Rs 105–111 per share
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indogulf Cropsciences has announced that its initial public offering (IPO) will open for subscription on Thursday, June 26, and close on Monday, June 30. The price band for the offer is fixed at Rs 105 to Rs 111 per equity share, each with a face value of Rs can bid for a minimum of 135 equity shares and in multiples IPO comprises a fresh issue of equity shares worth Rs 160 crore and an offer for sale (OFS) of up to 36,03,603 shares—including 15,40,960 shares by Om Prakash Aggarwal (HUF) and 20,62,643 shares by Sanjay Aggarwal (HUF).Indogulf plans to utilise Rs 65 crore from the fresh issue proceeds to meet working capital requirements, Rs 34.12 crore to repay or prepay certain outstanding borrowings, and Rs 14 crore towards capital expenditure for setting up a dry flowable (DF) manufacturing plant at Barwasni in Haryana's Sonipat district. The remaining funds will be used for general corporate in 1993, Indogulf Cropsciences operates across three primary business segments: crop protection, plant nutrients, and biologicals. The company caters to both retail and institutional customers and focuses on enhancing agricultural productivity. It is among the first few indigenous manufacturers of Pyrazosulfuron Ethyl technical in India, with a minimum purity of 97%, and began production in 2018. The company is also recognised as a Two-Star Export House and has exported products to over 34 company's clientele includes major domestic names such as Krishi Rasayan Exports, Parijat Industries, BR Agrotech, and Crystal Crop Protection. Its suppliers include Coromandel International, GSP Crop Science, and Chinese firms such as Dagro Chemical and Hubei Benxing Supply Chain currently operates four manufacturing facilities located in Jammu & Kashmir and Haryana. It also has two subsidiaries—Indogulf Cropsciences Australia Pty Ltd in Sydney and Abhiprakash Globus Private Limited in a strong domestic and international presence, the company operates across 22 Indian states and 3 Union Territories, supported by 6,916 active distributors, 192 institutional business partners, 17 stock depots, 6 sales and branch offices, and 143 overseas business partners spread across over 34 the company reported a revenue of Rs 552.23 crore in FY24, marginally up from Rs 549.66 crore in FY23. Profit after tax rose by 25.91% to Rs 28.23 crore in FY24, up from Rs 22.42 crore the previous year. For the nine months ended December 31, 2024, revenue stood at Rs 464.19 crore, with a net profit of Rs 21.68 crore. Systematix Corporate Services Limited is acting as the sole book-running lead manager to the issue, while Bigshare Services Private Limited is the registrar. The IPO will be conducted through a book-building process, with up to 50% of the net offer reserved for qualified institutional buyers (QIBs), at least 15% for non-institutional investors, and a minimum of 35% for retail individual on the price band, the total issue size is estimated at Rs 197.84 crore at the lower end and Rs 200 crore at the upper end.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
