New Delhi
The coming month for India’s largest airline company IndiGo can be challenging on the economic front. According to sources, it is possible to increase the company’s aviation insurance premium suddenly from 30% to 50%. The reason for this is the global insurance pressure arising from the heavy insurance claims related to the Air India aircraft accident and the war crisis like Iran-Israel.
This is not just an internal financial challenge of a company, but a serious warning for the entire Indian aviation region.
IndiGo’s insurance scope of $ 20 billion
By March 2025, IndiGo had a fleet of 437 aircraft, mainly included narrow-bodies aircraft such as Airbus A320 and A321.
Insurance value of every aircraft: $ 30– $ 45 million
Total insurance coverage: about $ 20 billion
Annual Insurance Premium: $ 14–15 million
This insurance was prepared under the leadership of New India Assurance, which included domestic companies like ICICI Lombard. The recast was done in the London market.
Air India accident changed the equation
The recent Air India aircraft accident in Ahmedabad has shook the entire insurance system.
Estimated limit of hull and liability claims: $ 120–200 million
This can become the largest aviation insurance payout in the history of India.
Experts believe that if this claim goes to global insurers, they can raise risk evaluation and premium rates in emerging markets such as India.
Effect on War Risk Insurance from Bhurajiti
The second major reason for increasing insurance premium is geopolitical stress such as Iran-Israel conflict.
Many international flights had to be diverted due to the closure of the Iranian aircraft.
The insurers automatically increase the “War Risk Rates” automatically.
War insurance only has a 7 -day cancellation clause, so that insurance can be canceled at any time.
Due to these conditions, every airline operated in India may have to pay additional security costs for its aircraft.
Passenger claims, legal matters and insurance industry pressure
According to Amit Aggarwal, CEO of Hourden India Insurance, passengers of the Air India accident will get compensation according to the Montreal Convention, but this process will depend on the nationality and nature of the passengers.
Gic Re Chairman N. Ramaswamy said that such a big claim will affect both the rating and capacity of reintegration companies. This indicates that obtaining insurance cover in future can be difficult or expensive.
What can IndiGo do now?
Re -interaction on premium:
IndiGo will have to renew insurance on new terms in the London market.
Change in fleet:
Insurance costs can be reduced by removing old aircraft.
Defense from war zone:
Such routes can be temporarily suspended where war risk is high.
An accident and the entire system in crisis
The Air India accident was not just a technical lapse, its impact on the insurance policy and financial stability of the entire Indian Aviation Sector.
IndiGo, which is known for low -cost operation, this insurance premium increase can cause economic pressure.
If the war crisis and the strictness of the global insurance market persist, then air ticket prices, flight capacity of aircraft and safety costs of passengers – everything can be affected in the coming time.
