Soon, Two-Wheeler Owners May Get One-Time Insurance

The General Insurance Council – an association of non-life companies, initiated a move to push long-term insurance policies valid upto 10 years and longer. The move gets rid of the hassles of annual renewals, reduce dropouts, which is rampant among two-wheelers policy holders.

The proposal of one-time insurance for two-wheelers replicates the concept of road tax where annual payments were replaced by one-time levy. However, people who go by online payments have to continue paying renewals.

Industry official estimates say that half of the two-wheelers are without proper insurance cover. But it is required by law, so that, the victim receives compensation in case of accident. The proposal is also meant to curb losses that are incurred under third-party insurance. Further, the cost of cover is a few hundred rupees and hence insurance agents do not find it lucrative to chase renewals as they get small commissions.

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