In a move to reduce the number of uninsured two-wheelers plying on the roads, the General Insurance Council (GIC) is working towards introducing long-term insurance for motorcycles – possibly a three- or five-year policy.
Mr S.L. Mohan, Secretary General, GIC, told Business Line that a substantial percentage of two-wheelers did not have insurance as the policies were not renewed. Most agents do not follow up with the vehicle owners for renewal since the premium amounts are not significant – varying between Rs 600 and Rs 800, depending on the age of vehicle . Also the commission amounts on such premiums are small.
Insurers, on their part, do not push motorcycle policies aggressively because it is considered ‘small ticket' compared to car insurance, for example. Therefore, the onus for renewing the insurance policy rests on the owner of the motorcycle.
“We expect that by providing a long-term policy and offering discounts, a large percentage of uninsured bikes will come under the ambit of insurance, “said Mr Mohan.
According to the latest available data from Tariff Advisory Committee, about 2 crore two-wheelers were insured in 2007-08. Although there is no published data on the number of two-wheelers plying on Indian roads, close to 4.5 crore two-wheelers have been sold in the past seven years, according to the Society of Indian Automobile Manufacturers (SIAM). Each year about 75 lakh new two-wheelers get added to Indian roads; 84 lakh vehicles have been added so far this financial year.
Mr S.L. Mohan, Secretary General, GIC, told Business Line that a substantial percentage of two-wheelers did not have insurance as the policies were not renewed. Most agents do not follow up with the vehicle owners for renewal since the premium amounts are not significant – varying between Rs 600 and Rs 800, depending on the age of vehicle . Also the commission amounts on such premiums are small.
Insurers, on their part, do not push motorcycle policies aggressively because it is considered ‘small ticket' compared to car insurance, for example. Therefore, the onus for renewing the insurance policy rests on the owner of the motorcycle.
“We expect that by providing a long-term policy and offering discounts, a large percentage of uninsured bikes will come under the ambit of insurance, “said Mr Mohan.
According to the latest available data from Tariff Advisory Committee, about 2 crore two-wheelers were insured in 2007-08. Although there is no published data on the number of two-wheelers plying on Indian roads, close to 4.5 crore two-wheelers have been sold in the past seven years, according to the Society of Indian Automobile Manufacturers (SIAM). Each year about 75 lakh new two-wheelers get added to Indian roads; 84 lakh vehicles have been added so far this financial year.
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