Aviation

Cyclone impact: Insurers will see rise in aviation claims, but reinsurance will offer cover

With two cyclones hitting India in quick succession, it will lead to a rise in claims for insurance. Among those claiming would be the airlines whose planes have been parked at the various airports.

Insurers, however are not expected to take a big hit on their balance sheets due to adequate reinsurance support.

“Claims are coming in. However, since we have reinsurance covers to meet the needs there will be minimal impact on the books,” said the head of claims at a large private insurer.

Cyclone Amphan hit West Bengal and parts of Odisha on May 20 which caused severe damage to property. Airlines parked at the Kolkata airport were also damaged and a few submerged in water. Claims have started to come in for these damages and initial estimates indicate aviation claims of Rs 50-60 crore.

Aviation insurance provides coverage for hull (aircraft) losses as well as liability for passenger injuries, environmental and third-party damage caused by aircraft accidents.

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moneycontrol
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