Team-BHP - New India launches long-term 2-wheeler insurance policy

New India Assurance has introduced the 2 wheeler Insurance policy valid for 3 years - the first in the Insurance business. The discount offered is 30% if one buys the 2 wheeler insurance with 3 year validity. Doesnt this sound something similar to 3 years accumulated NCB?? However New India says that any NCB accumulated during the period will be added to the renewal after 3 years which may go upto 50% discount. A similar kind of arrangement for the 4 wheelers are in the offing by New India. More details in the link.

http://timesofindia.indiatimes.com/b...w/46952598.cms

New India Assurance has introduced a new comprehensive insurance policy for two-wheelers. Under this policy, motorcycles and scooters can be insured for a period of two or three years.

Two-wheeler owners opting for the three-year scheme will avail of a discount of 30% while those opting for the two-year scheme will be entitled to a discount of 20%. More discounts will be available depending on factors such as purpose of use, location, anti-theft devices, etc.

After the long-term policy expires, customers can switch to policies for one, two or three years. While renewal of policies, they can avail of discounts of 20% for a three-year policy and 15% for a two-year policy in the case of nil claim vehicles. The policy will have a zero depreciation cover on payment of additional premium.

New India Assurance has launched this scheme after the Insurance Regulatory and Development Authority of India (IRDAI) decided to allow insurance companies to introduce long term policies for two-wheelers. With the introduction of long-term policies, the problem of two-thirds of the 10 crore two-wheelers going uninsured is expected to be solved.

The new policy can be purchased through traditional channels as well as online and will protect the customers from possible hikes in premiums over the years.

In future, New India Assurance will look into the possibility of extending the long-term policy to five years. The company is also looking to launch a long-term policy for cars, after the IRDAI allows it.

Source: Business Standard, Times of India

Great. Saves the headache of renewing policy. If one owns multiple vehicles, keeping track of insurance validity can be a task. I save it as a reminder in my smartphone; a couple of days in advance from the actual expiry so that I have the time to renew the policy.

One question though- do the upfront discounts make up for the NCB that will accumulate over the period?

Hope, such policies for 4-wheelers also are introduced soon.

Thanks for the news!
Regards.

The idea is really good. But New India? Absolutely no way. I have 'only' had bad experiences with their agents, their TPAs who handle a claim and this is not only limited to Motor Insurance. Their health insurance is equally bad too.

They can offer me a 75% discount but whats the use if no one is going to honour it.

This is complelety based with my interaction with their claim handling teams, their sales agents, their GROs and their Customer Care.