Oriental Insurance To Cover Paramount Airways

Oriental Insurance Company Ltd has clinched a deal to insure the aircraft of the Coimbatore-based Paramount Airways. C Kumar, divisional manager of the Oriental Insurance Company, said that the four public sector general insurance companies and Bajaj General Insurance, the only company from the private sector, participated in the quotation process. He added that it has been a highly competitive deal but refused to divulge the premium paid by Paramount.

According to Kumar, Oriental Insurance has an edge over its competitors because of their exposure in the field of aviation. "We have provided insurance cover for Jet Airways and Indian Airlines aircraft," said Kumar. He further stated that the aviation risk profile was huge, as each aircraft was worth Rs 150 crore, and the company provided passenger and third party cover as well. "Indian companies alone cannot take on this load. Oriental Insurance has the backing of a London-based firm in the form of a reinsurance", said Kumar.

Paramount Airways, floated by a textile major, is looking to connect tier-two cities like Coimbatore, Kochi, Pune and Nagpur. The new routes will be Coimbatore-Delhi-Coimbatore, Delhi-Kochi-Delhi and Coimbatore-Chennai-Coimbatore sectors.