Manik Nehra, Senior Manager – Aviation insurance at Bajaj Allianz General Insurance positively quoted that civil aviation is an up-and-coming segment in the general insurance sector. This sector will witness more industry players coming into the market as well as expansion by existing players. Tata SIA Airlines is one of the new big companies to start its operations next year.
Industry sources also believe on the above. An industry official also stated on the same lines, saying that aviation insurance is like to come out as a key growth area in the near future with new airlines starting operations and existing players expanding fleet size. Share of aviation insurance, which is now at Rs. 500 crores, is expected to go up with introduction of the above. Further, there are not much claims from aviation insurance sector, thereby making this segment a profitable one.
Confirming to the above assumption, statistical data also reveal that domestic aviation industry is growing at an average rate of 15% p.a and is likely to add around 450 new aircrafts in near future. In addition to civil aviation, corporate fleets are also growing in the country as more and more corporate are buying personal jets for the business use.
With New India Assurance being largest player in this segment, Bajaj Allianz has around 30 jets belonging to various corporate insured by them including the recently started regional carrier Air Costa. Mr. Nehra also disclosed the company’s plan of expansion in this profitable segment. He said that the company aims to be a significant player in this area and is working with General Insurance companies to provide for re – insurance coverage to aviation assets as it is highly reinsurance driven business.
Mr. Rakesh Jain, Chief Executive Officer of Reliance General Insurance said that aviation insurance is a niche product. Currently its share is less than 1% in the total general insurance segment but the pie is growing.
