Additionally, rates in the aviation sector are also expected to increase due to huge claim outgo in the Air India crash.
IMAGE: Kindly note that this image has been posted for representational purposes only. Photograph: ANI Photo
Helicopter insurance premiums in India are likely to rise by 15–30 per cent owing to a recent spate of domestic accidents and mounting aviation losses faced by global reinsurers, industry insiders said.
Aviation insurance is largely a reinsurance-driven area, with the general aviation market comprising corporate jets, helicopters and others accounting for 15 per cent of the segment in India. The remaining is commercial aviation.
In FY25, the premium accumulated from the aviation segment in India was nearly ₹1,010 crore, up 4 per cent from the previous year.
In general aviation, the premium rates are calculated based on the age and seating capacity of the hull combined with liability.
The hull value of helicopters ranges from ₹25 crore to ₹30 crore going all the way up to ₹100 crore.
The average premium in the helicopter segment is also around ₹75 lakh, according to industry experts. This is likely to increase by 25-30 per cent in line with the overall hardening in the aviation insurance market.
“There have been 5-6 helicopter crashes in the last few months. Overall, Indian insurers are under pressure in terms of premium versus claims. We have seen rates rising steeply for smaller rotor wing operators, like those who fly to Kedarnath, Chardham, or maybe small general aviation helicopter operators. In some cases, the premium has also doubled. Also, amid the Air India crash, there will be a hardening in the insurance market in the coming months,” an insurance broker said.
On June 15, a helicopter crashed in Kedarnath, making it the fifth such incident in the Char Dham route, since the pilgrimage started on April 30. This comes days after the crash of Air India AI-171 in Ahmedabad.
Previously, six people died when a helicopter crashed in Uttarkashi on May 8.
Similarly, a crash was averted in Badrinath on May 12.
On May 17, an air ambulance crashed in Kedarnath but no casualty was reported.
On June 7, a helicopter on its way to Kedarnath made an emergency landing on the highway due to technical snag, developed during take-off.
Additionally, rates in the aviation sector are also expected to increase due to huge claim outgo in the Air India crash combined with the ruling by the London high court regarding jets stranded in Russia, among others.
“Helicopter insurance rates are expected to increase due to a combination of domestic accidents and significant global aviation losses. A series of high-profile claims, including a UK court ruling of $4.5 billion and other aviation incidents like the Air India and Boeing 737 MAX losses, are straining global reinsurers. Also, the overall aviation insurance premium rates are likely to harden due to limited capacity, heightened geopolitical risks and currency fluctuations. Premiums for helicopters may also rise 15–25 per cent, in-line with the overall aviation insurance segment,” an insurance executive said.
