There is rise in demand for cover for ground handling and aircraft components
Aviation insurance policies that were primarily used to coverthe fleet of the airline companies is now in demand for the other covers provided by this policy. Insurance companies said that apart from airline insurance, covers for ground handling and aviation product liability has been increasingly being looked out for, by companies in the aviation space.
The traditional fleet insurance policies cover damages caused by major accidents and natural catastrophe are covered. Incidents of hijacking, enemy attacks and invasion are excluded from policy coverage.
“We are now looking at aviation products, general aviation and aerospace insurance covers. In the next few months, we will look at airline insurance as well,” said M Ravichandran, president-insurance, Tata AIG General Insurance.
Insurance companies said that there is a rise in the number of companies operating in the aviation space. From a time when all airport operations were handled by a single player to a time when there are multiple players operating in the market for each function, the coverage requirements are very different. Hence, the covers have also been customised to suit the client needs.