Air India Crash Risks Fueling Up to 30% Jump in Insurance Premiums

(Bloomberg) – Indian insurance policy vendors have been waiting for more than ten years after a deadly aviation accident to rise up to 30% of airlines.

Sajja Praveen Chowdary, director of Indian broker Policybazaar, Hull, in the next renewal cycle, expects the scope of war risk and responsibility to increase to 10% to 30%. Rohit Boda, General Manager of the Broker JBBODA Group, foresees an increase of 10% to 25%.

Brokers, considering the size of the Premium hikes of this scale, the size of the Air India accident would be greater than previous accidents, he said. The accident killed 241 and dozens of on the ship when he hit a settlement in Ahmedabad on June 12th.

According to a UK -based reinsurer, the premium increases were between 15% and 18% after a accident in South Korea last year, except for two of the 181 passengers last year.

Bloomberg News, according to previously reported, insurance requests for Air India Crash are expected to be in the $ 475 million world and additional responsibility for loss of life. According to Politication’s data, Air India’s fleet is insured about $ 20 billion in total and the annual premium is close to 30 million dollars.

“A disaster of this scale will contribute to the hardening of global proportions, Chow said Chowdary, director for Policybazaar Business.

According to a report of Allianz SE, globally accidents announced most of the 15 billion dollars of aviation claims in the five -year -ending five -year period. According to the report, the growth in the air journey of Asia-Pacific and North America was expected to increase over $ 8 billion.

He said that the insurance premium increase will be for all airlines and that there are people who are familiar with the issue and want to not discuss special issues. He added that the effect will be redistributed to the world airlines.

Human beings are expected to increase premiums and said that more aircraft loss could break a record.

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(In the fourth paragraph, updates with context in South Korean accident)

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