New India launches long-term 2-wheeler insurance policy

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