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Journalism of Courage
MUMBAI, JAN 8: The financials of Indian Airlines too would have been hijacked if the airline had not taken the precaution of taking a `war insurance’ cover which includes hijackings and other eventualities. The airline has, according to a conservative estimate, lost over Rs 1.5 crore which includes ferrying passengers from both Dubai and Kandahar, non-usage of its 250-seater Airbus 300 for over 15 days and another A-320 which was parked in Kandahar airport for five days as standby.
“The Crisis Management Group is still looking into every papers. However, at the end of day Indian Airlines will take the entire financial burden of the crisis which we hope to recover from the insurance companies,” Robin Pathak, Director of Indian Airlines told this newspaper. Indian Airlines has already made a claim of $ 20,000 (Rs 8.7 lakh) for the lone deceased, Rupin Katyal in the entire hijack drama from the insurance companies which the latter are currently studying. In previous occasions, Indian Airlines has taken theentire financial burden of hijackings in its books.
The insurance cover, taken by Indian Airlines from General Insurance Corporation, has been re-insured further with a London-based insurance major. According to the arrangement between GIC and its London-based partner, the insurance premium is divided between the two with the London company taking the major share. The claim, when made, is paid by the London-based company.
“We will make the claim for financial loss as soon as all the investigation is completed by various agencies,” Pathak said. The financial loss will also increase the parking and landing charges levied by Taliban authorities to Indian Airlines.
Though the airline’s image has taken a serious beating due to hijack and lax security, Indian Airlines is expecting to make a net profit of Rs 14.5 crore in the fiscal 2000 which does not include the proceeds from the insurance companies. Insurance industry sources say that premium for Indian Airlines would be increased from next financial yearonwards due to its dubious record of the maximum hijack cases, accidents and other mishaps.
“They (international companies) are not going to take these frequent hijackings lightly. In future, it would only result in higher insurance premium for Indian Airlines which would, in turn, increase its cost of operations,” GIC officials here say.
