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New India Assurance has launched the first long-term comprehensive two-wheeler policy. Insurance Regulatory and Development Authority of India (IRDAI) has allowed insurers to bring out long term two-wheeler policy (both liability alone and package) for maximum three years. The product by New India will give customers the option to choose between two- or three-year policy tenures.
G Srinivasan, chairman and managing director of New India Assurance said that this product will also have a zero-depreciation cover on payment of additional premium. New India has collected total premiums of Rs 16,000 crore for FY15 with domestic premium of Rs 13,250 crore and Rs 2,810 crore from overseas business.
The company had earlier launched a long-term motor third party product. In the future, Srinivasan said that the policy tenure could be extended to five years. Further, he said that they will look to launch long-term policies for private cars whenever IRDAI gives its nod for it.
The customer will get an assured discount of 30 per cent for three-year policy and 20 per cent for two-year policy in each case. Insured can get further discount depending on various underwriting factors like purpose of use, location, anti-theft device among others. Also, for renewal of policy with nil vehicle claim, customer will get a discount of 20 per cent for three-year policy and 15 per cent for two-year policy.
There can be 50 per cent savings on OD premium in taking 3 Year long-term package policy, compared to annual premiums that a person may pay over three years for annual policy on Indian Motor Tariff Rates. By taking a long-term policy, Insured is protected against the possible increase in TP premium during the policy period.
The policyholder can after the expiry of long-term policy switch over to either 1 year or 2 years or 3 years policy.
