IndiGo in for a crash course in surge in insurance costs
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IndiGo airlines, the country's largest carrier by fleet and market share, may see a surge in aviation insurance cost when it renews its policy next month, likely driven by increased geopolitical risks and decline in reinsurance capacity after the Air India plane crash. As of March, IndiGo was operating a fleet of 437 aircraft, primarily narrow-body Airbus A320 and A321 models, each insured for a hull value of $30-45 million. It has a total insurance cover of around $20 billion for its 437 aircraft, with an annual premium estimated between $14 million and $15 million, according to insurance industry sources. On the liability side, a narrow-body aircraft is typically covered up to $750 million, while wide-body aircraft are insured for as much as $1 billion. Last year, IndiGo's risk was placed in the Indian insurance market with New India Assurance as the lead underwriter, supported by multiple domestic insurers, including ICICI Lomb...