Astra To Insure Tarom Fleet For Fifth Consecutive Year - Sources

04.18.2011 By Ioana Tudor

Romanian insurance company Astra Asigurari will insure the fleet of state-owned airline Tarom, for the fifth consecutive year, between May 1, 2011 and April 30, 2012, people close to the matter told MEDIAFAX.

Romanian insurance company Astra Asigurari will insure the fleet of state-owned airline Tarom, for the fifth consecutive year, between May 1, 2011 and April 30, 2012, people close to the matter told MEDIAFAX.

Insurer Omniasig Vienna Insurance Group also participated in the auction. Bids were opened at the end of February.

The insurance contract, which will run between May 1, 2011 and April 30, 2012, includes voluntary insurance CASCO services for civil aircrafts and aircraft parts (including the reduction in franchise-based Casco insurance deductible for aircrafts and engine parts) and the compulsory insurance policy to cover passengers, luggage, cargo, mail and third parties.

Tarom's fleet is currently insured by Astra until the end of April 2011 when the insurance contract expires. Astra has cashed nearly $4 million for this insurance contract, said the sources.

Astra also insured Tarom's fleet during 2007 and 2008. It paid $10 million in damage claims under the 2007 insurance contract, after a Boeing 737- 300 was severely damaged following a collision with a runway upkeep vehicle in December 2007.

Tarom's fleet includes 26 aircrafts: two Airbus 310-300, four Airbus 318-100, four Boeing 737-300, four Boeing 737-700, three Boeing 737-800, seven ATR 42-500 and two ATR 72-500.

Romania's general and life insurance market decreased by 5.7% in 2010, to 8.36 billion lei (EUR1=RON4.0869). The general insurance segment, which also includes airline transport insurance policies, dropped 7.5%, to RON6.69 billion.