Page 8 - Insurance Times May 2024

reported a decline of 29 per cent in premiums will result in an increase in all Indian trainer aircraft rather than
their combined gross premium at Rs. student fees and push aspiring pilots to being applied only for those flying
11,190 crore in FY24 (Rs. 15,817 crore train overseas training organisations where the aver-
in FY23). In 2022, 1,135 commercial pilot li- age accident rates are high, "AFTO
president Harsh Vardhan Pratap Singh
The nonlife industry continues to be cences were issued by the Directorate
said.
driven primarily by the health and General of Civil Aviation (DGCA). This
motor insurance segments though it includes both certification of locally Player insurance premi-
was marginally subdued in FY24 due to trained cadets and licence conversion
a fall in liability, crop insurance and of those who trained overseas. The ums up 25% this IPL
marine cargo, while fire and credit number of licences issued has now in- As the Indian Premier League (IPL)
guarantee segments reported sub- creased to over 1500. becomes bolder and better each sea-
dued growth numbers compared with son, the insurance cover also becomes
But pilot training in India has also been
last year, according to a recent report bigger for players of the planet's rich-
marred by a patchy safety record.
of CareEdge Ratings. est cricket tournament. The insurance
There has been a spate of accidents
involving trainer aircraft. In October, premiums for players have gone up by
Flying schools may lose 20 to 25 per cent from last year due
the DGCA suspended approval of Red-
cover as insurers tweak bird Flight Training Academy following to a surge in cricketers' brand value and
terms, hike rates five accidents to its aircraft in six their increased susceptibility to injury,
months. This has led to an increase in resulting in a loss for the insurers, ac-
A record 1,562 commercial pilot li- premiums and left the industry wor- cording to industry participants.
cences (CPL) were issued by the Direc- ried. The IPL insurance policy involves vari-
torate General of Civil Aviation in 2023.
"Globally, the insurance premiums are ous stakeholders such as the Board of
Pilot training schools in the country, in the range of 1.5 to 3 per cent of the Control for Cricket in India (BCCI), the
however, are not celebrating. Instead, hull value of the aircraft. Previously, this teams, the broadcaster, sponsors and
the schools are worried about an un- ancillary service providers. It covers
was the case in India too but over the
certain future due to a steep hike in past 2 to 3 years, the premium has revenue loss on account of unforeseen
insurance premiums and onerous policy been increased by almost 500 per cent events, such as weather issues, riots,
conditions. being attributed to the increase in the loss of player fees on account of injury
The Association of Flying Training number of accidents of trainer aircraft or illness and medical costs.
Organisation (AFTO), petitioned the in India. However, this premium in- "In the last year, insurance companies
Civil Aviation Ministry for help as high crease has been uniformly applied to experienced loss due to players getting
injured and not being able to play the
Election process to delay insurance sector full tournament and cancellation of
their entire assignment. This is likely to
appointments
have pushed the insurance premiums
The Election Commission of India (ECI) directive to the Finance Ministry bar- for players. Also, the fees of players
ring fresh recruitment and appointment till the completion of the election have also increased from last year,
process will stall top-level appointments in the insurance sector. causing the franchise owners to look at
Effectively, for the PSU insurance industry, such a stand by the ECI, will stall higher amounts of insurance, and likely
all the new appointments including Member (Distribution), IRDAI, two CMDs pushing the player insurance rates
- New India Assurance and United India Insurance - and nine executive direc- higher this time," said Amit Solanki,
tors (EDs) across six general insurance companies including GIC Re and Agri- Head Liability & Special Risk, Howden
culture Insurance Company till June 4 when the results for the general elec- India.
tion will be declared, said an insurance sector official. Some key Indian players like Shreyas
"The Commission has no objection, from MCC angle, to the promotion/trans- Iyer, Washington Sunder, Prasidh
fer of officers subject to the condition that no official involved in the election Krishna were ruled out in the last edi-
work in any capacity is relieved/dislocated till the election process is over. tion due to injuries.
Further, the recruitment/ fresh appointment shall be deferred till comple- "The IPL insurance consists of event
tion of the election process," ECI said in a letter to the Finance Ministry. cancellation insurance and IPL player

8 May 2024 The Insurance Times