Oriental Insurance has won the mandate to provide fog cover to Air India ahead of two other private and pubic sector insurance companies that were in the fray. This is the first time that Air India has gone in for fog insurance.

"Oriental Insurance will provide up to Rs 20 lakh in the event of fog affecting normal operations of Air India flights. The funds would be used to cover expenses incurred by the airline on account of re-routing of the aircraft and providing hotel accommodation for passengers," official sources told Business Line.

The cover is to remain in place till the end of February next year and is effective on flights being operated only from Delhi. The insurance cover, however, does not include the first three days of fog and the total liability permitted under the cover is Rs 1.5 crore.

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