Companies & Sectors
Kingfisher need to seek DGCA's nod before resuming operations

Maintaining that Vijay Mallya-owned carrier was facing serious financial crunch, Ajit Singh has said DGCA would have to be satisfied on all aspects of operational safety till it approved resumption of its flights

New Delhi: Kingfisher Airlines, which has declared a partial lockout till Thursday, would have to seek aviation regulator nod from the Directorate General of Civil Aviation (DGCA) before resuming operations, reprots PTI quoting Civil Aviation Minister Ajit Singh.

 

DGCA has asked the crisis-ridden airline to submit a report on airworthiness of its aircraft before resuming operations, he told reporters.

 

The Minister's response came a day after the airline CEO Sanjay Agarwal and Executive Vice President Hitesh Patel met DGCA chief Arun Mishra, briefing him on the company's decision to suspend the entire operations till October four.

 

"We are hopeful that we will resolve the situation in the next few days. We will take a call on October four on resumption of our operations," Agarwal had told PTI on Tuesday.

 

The airline would be using its current fleet of ten aircraft -- seven Airbus A-320s and three turbo-prop ATRs, to resume flights. With these planes, Kingfisher has been operating about 70-80 flights each day till it declared a partial lockout late Monday night following a strike by engineers and pilots for non-payment of salary.

 

Maintaining that Vijay Mallya-owned carrier was facing serious financial crunch, the Minister said DGCA would have to be satisfied on all aspects of operational safety till it approved resumption of its flights.

 

Based on the inputs received from the airline and its own findings, the aviation regulator is likely to submit an interim report on the airline's safety parameters to the Ministry very soon and a final report would follow in the next few days.

 

"We will only then take a decision on the airline's operations," the Minister said, adding that he had "no idea" on the implications of the safety issues on Kingfisher's flying licence as of now.

 

The airline had declared a partial lockout after its engineers and pilots struck work on Friday to protest non- payment of salaries since March.

 

After the airline CEO told DGCA that the March salaries, which have already been paid to about half the employees, would be given to the remaining staff in the next few days, a representative of the protesters said, "The management has made such promises earlier too but not fulfilled them. So, we have to wait and watch."

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IRDA to bar arbitrary hike in renewal premium on health policy

According to IRDA chairman, the insurance company would have to assess the health risks of a policyholder at the time of selling the policy and not at the time of renewal

 
New Delhi: Insurance Regulatory and Development Authority (IRDA) will soon come out with guidelines to prevent insurance companies from arbitrarily hiking renewal premiums on health policies under which benefits had been claimed previously, reports PTI.
 
"We have seen that if a party makes a claim in a given year, it is likely that the insurance company may increase the premium because you have made a claim.
 
"To some extent it means they are doing underwriting at the time of the claim. And that is not the way you do underwriting. That is what we are bringing it in draft regulations," J Hari Narayan, chairman, IRDA said at a CII event here.
 
The IRDA said the norms would be part of the overall guidelines for the health insurance sector.
 
Hari Narayan said while changing the premium, the insurers will have to take into account the experience of the entire class and not only individual.
 
"The way it will be fashioned is when you are loading the premium, the loading cannot be on the basis of individual claim experience, it will have to be based on the behaviour of the entire class," he said.
 
Hari Narayan said the insurance company would have to assess the health risks of a policyholder at the time of selling the policy, as happens in most countries.
 
"In health insurance, the problem is if you really want to assess what the health risk is on a given prospect, it requires quite a lot of time and medical intervention. So people (insurers) tend to do this later. They do it when a claim comes. I think that will change," he said.
 
The health insurance sector grew by 33% in the first six months of the current fiscal, up from 23% last year.
 

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