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this growth is expected to continue. IATA reckons policies catering to different proposers of aviation
India to be a driving force behind the world's civil Insurance.
aviation business that is globally expected to grow
from US$ 5.1 billion to US$ 5.6 billion this year. Indian Aviation Market And
Government estimates are that India's fleet will Growth Potential
be around 500-550 aircrafts by the end of 2010,
which was only 130 a few years ago. International u Sector structure/Market size
budget carriers, especially low-cost carriers are
making a beeline for India. India continues to grow In the present scenario the Indian aviation industry
steadily with a 7 per cent increase in the number is one of the fastest growing Aviation industries in
of flights. The number of air travelers increased the world. Numbers always present a true picture,
by 38.5 per cent in 2006-07 and is anticipated to after studying these numbers we find the true
double over the next decade. Handling of such picture of aviation market as well as scope for
traffic will require more airports, aircrafts, pilots, insurance business:
and ground handling person. To sustain this l With a growth rate of 18 per cent per annum,
growth several improvements are envisaged,
including government's airport modernization plan the Indian aviation industry is one of the
involving investments of US$ 9 billion by 2010. fastest growing aviation industries in the
world.
With the entry of low cost airlines along with fleet
expansions and increasing corporate aircraft l Today, private airlines account for around 75
ownership, and projected growth in various per cent share of the domestic aviation
spheres of aviation industry there will be demand market.
for various aviation insurance products and the
market is all set to expand in a major way. l India has jumped to 9th position in world's
aviation market from 12th in 2006. The
Aviation insurance is a specialized branch of scheduled domestic air services are now
insurance. The risks are evaluated based on available from 82 airports as against 75 in
information such as (i) name, address, age, 2006.
business of the aircraft owner (ii) aircraft make,
model, year of manufacture and value (iii) l India has 454 airports and airstrips; of these,
purpose for which aircraft will be used 16 are designated international airports.
(iv) name, age, ratings and experience of the
pilots,(v) type of hull and liability coverage (vi) past l As per the ministry of civil aviation, the airline
loss experience. Aviation market is different from business is growing at 27% annum in India.
other non life insurances and in terms of size is
much smaller than that of other non life branch of l Over 135 aircraft have been added in the past
insurance .Though the limits of acceptance for 2 years alone.
offices are low or nil, the marketing officials and
underwriters of operating and Regional Offices l Centre for Asia Pacific Aviation (CAPA)
must have sufficient knowledge of aviation estimates domestic traffic to grow 25-30 %
insurance products to understand the requirement annually and international traffic 15% until 2010.
of the clients and explain the coverage, terms
and conditions to the customers. To equip the Air Traffic
personnel dealing with aviation insurance this
Manual includes at length profiles of nine aviation Domestic air traffic is likely to more than double
and touch 86.1 million passengers by 2010, up
from 32.2 million passengers in 2007, states the
market research firm PhoCus.
Potential for Growth
l The Indian Civil Aviation market grew at a
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