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Airline Operators Request Insurance Companies for Ground Risk Coverage

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Airline Operators Request Insurance Companies for Ground Risk Coverage
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April 14: Airline Operators Association of Nepal (AOAN) has requested the insurance companies to cover 'ground risk’ from the existing insurance policy as they are unable to operate flights due to the lockdown.

Earlier, the insurance companies had not responded to the request letter sent to them by the airlines operators. So, AOAN on behalf of all the airline operators has send a letter to the concerned insurance companis on Sunday, April 14.

Currently, Shikhar Insurance, Himalayan General Insurance and Prabhu Insurance are the only insurance companies providing insurance facilities for aircraft in Nepal.

The airline companies had earlier sent letters to the respective insurance companies individually urging them to cover the ground risk. However, AOAN informed that the operators did not receive any response from the insurance companies.

Yograj Kandel, spokesperson of AOAN, said that the association had sent a letter to Insurance Board after the insurance companies didn’t respond to their letters.

Generally, airline insurance covers two types of risks - full flight risk and parking risk (ground risk).

However, flight operation has been completely shut down following the government’s lockdown order since March 24 to stop the transmission of the coronavirus.  Therefore, the AOAN has been requesting the insurance companies to insure their aircraft by completely converting their insurance into ground risk, Kandel informed.

The insurance policy only provides protection against the risk while parking and when the aircraft are not operated for a certain period of time.

However, the airline companies argue that the insurance policies can be changed like in the past. By doing so, the airline operators that previously paid insurance premium can receive refunds from the insurance companies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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