India gets its first 3-year comprehensive insurance cover from New India Assurance for scooters and motorcycles, and offers a 30 percent discount.
India’s first three-year comprehensive cover for scooters and motorcycles was launched recently by New India Assurance. The comprehensive cover is actually 30 percent cheaper than buying annual policies and is a mouth-watering proposition. This new scheme will surely help in tackling the problem of uninsured two-wheelers plying on Indian roads, which is currently more than two-thirds of the total 10 crore two-wheelers.
New India Assurance, which is the country’s largest insurer says that a big number of policyholders do not actually renew their policies after completion of the first year. This is quite alarming because having your vehicle (two-wheeler in this case) insured is compulsory. According to the new product, the buyer will get a 30 percent discount on the three year cover. New India Assurance also said that there is a bonus entitlement due to no claim in the preceding year as well and the discount can go all the way up to 50 percent in this case.
More than 70 percent of vehicles in the country are two-wheelers, but they account for only 10 percent of the motor insurance premium. This is mainly due to the fact that two-wheelers are cheaper and the proportion of uninsured two-wheelers is much higher than that of cars. The company mentions that the customer buys the policy for a year as it has to be purchased along with the new vehicle, but the owner later fails to renew the policy after the first year.
The long-term two-wheeler policy can also be purchased online except the traditional routes. Besides the discount for upfront payment, long-term policyholders will also not be applicable for the annual rate hikes on third-party premium that the IRDA has been announcing year on year.