Kingfisher Airlines announces insurance premiums remain the same despite growth
September 1, 2011, 04:16 pm
Kingfisher Airlines, based in India, recently renewed its annual insurance policy, according to an article in The Economic Times. Despite the airline's growth and increase in traffic, its insurance premium payments remained the same, as premium rates have declined by 37 percent since the end of the 2011 fiscal year.
Because aviation insurance is a high-value form of insurance, it is based almost entirely in the reinsurance market, and rates are determined by the annual frequency of accidents. Rates in 2009, the source notes, were high because of three major accidents, while the decreasing accident rate has allowed Kingfisher to maintain its payment level despite its growth.
Kingfisher Airlines' policy covers damage to aircraft hulls as well as passenger injury or fatality.
Though Kingfisher maintains that its premium rates did not increase in FY 2011-2012, the source notes that the industry as a whole has seen a total premium increase from $1.6 billion to $2 billion in 2010.
Like insurance for major airlines, insurance for pilots, though smaller-scale, affords the pilot special coverage that he or she might not receive with a traditional policy. Many pilot organizations offer discounted insurance policies for licensed commercial and independent pilots.
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