Monday, March 3, 2008

ICICI Lombard Gets NACIL Insurance Contract

Mumbai: ICICI Lombard has received the bid to insure the non-aviation businesses of the National Aviation Company of India Ltd (NACIL), in which state-run Air India and Indian have merged, said the source. ICICI Lombard''s exposure value this year is Rs 1,800 crore as compared to around Rs 1,500 crore last year, the official said, adding intense competition was witnessed during this year''s bidding. NACIL has managed to obtain a 20 per cent reduction in premium as compared to last year, he said, but declined to divulge the figure. Eight companies, four each from private and public sector, had bid for the contract to cover NACIL''s non-aviation businesses comprising the company''s buildings, equipment, furniture and other items which do not pertain to aircraft.

The eight companies were New India Assurance, United Fire Insurance, Oriental Fire and National Insurance (all state-owned) and ICICI Lombard, Cholamandalam, Reliance and Bajaj Allianz (private sector). For aircraft cover, NACIL will be floating a separate tender, mostly likely this week, seeking bids from insurance companies where the exposure value is likely to be in the range of USD 6.5 billion. This will be one of the largest tenders for insurance cover to be floated by an aviation company in the Asia-Pacific region.

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