05:19 (GMT +7) - Friday 20/10/2017

Business

Bao Viet Insurance provides insurance coverage to Vietjet

Released at: 10:27, 02/08/2017

Bao Viet Insurance provides insurance coverage to Vietjet

Photo: Bao Viet Insurance

Insurer and two others providing $2.5 billion worth of coverage to local carrier.

by Quang Huy

Three leading Vietnamese insurers have signed a contract to provide aviation insurance worth $2.5 billion to Vietjet Air’s 40 aircraft in the 2017-2018 period, with another 28 aircraft expected to be added during the period.

Bao Viet Insurance, PetroVietnam Insurance (PVI), and the Global Insurance Company (GIC) will provide all forms of aviation insurance, applicable worldwide, to ensure the safety of Vietjet’s aircraft, including hull insurance and war risk insurance, among others.

Bao Viet is now the aviation insurer for all of Vietnam’s carriers, Mr. Nguyen Quang Hung, Deputy CEO of Bao Viet Insurance, said. “This reflects the trust of major enterprises in one of Vietnam’s leading insurers, backed by strong financial capacity and rich experience within the industrial insurance sector and key national projects,” Mr. Hung noted.

The result of the partnership will provide the best financial benefits in terms of insurance premiums to Vietjet and ensure full commitment in emergency compensation and the handling of any flight incidents. One point of note is that this is now the seventh consecutive year Bao Viet has provided insurance services to the first privately-owned airline in Vietnam.

With a long-term goal of sustainable development, Bao Viet Insurance has continued to prove its brand and posted solid business results. It retained its No.1 position within the non-life insurance segment last year, with total revenue of VND6.56 trillion ($289.6 million) and profit of VND301 billion ($13.3 million); the highest of all non-life insurers.

From 2016 to early 2017, it opened another eight subsidiaries, expanding its network to a total of nearly 80, along with more than 300 insurance offices and 30,000 agencies nationwide, shoring up its position as possessing the largest network in the country to serve and interact with customers. Furthermore, its 24/7 customer service center and specialized insurance management software has helped it manage its customer database and ensure transparency in insurance activities.

As at June 30, Vietjet boasted a fleet of 45 aircraft, including 30 A320s and 15 A321s, and was conducting 13 more routes than on December 31, 2016. It has already opened 73 routes in Vietnam and across the region to international destinations.

During the first six months this year, it conducted a total of 49,151 flights with 8.27 million passengers, up 22.4 per cent year-on-year. Its technical reliability stood at 99.55 per cent; the highest obtained by any airline operating A320/A321s in the region. On-time performance for the year stood at 85.7 per cent.

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