Executives at ICICI Lombard General Insurance have stated that the problem of uninsured two wheelers can be solved with the long-term plans.
ICICI Lombard’s long term two wheeler insurance policies that are valid for 2-3 years have received a positive response. The company states that 15% of their premium and 8% of their policies are of a long term nature.
Mr. Amitabh Jain, Head (Motor Underwriting and Claims), ICICI Lombard believes that long-term plans will help renewals as compared to the current dismal 25% renewals of annual policies.
Few details like contact number and email ID are usually missed out by the dealers and efforts to improve data quality have not yielded renewals as they are not financially feasible. Under the long-term policies, the premium increases to ₹ 2500-3000 which makes it more financially attractive for commissions.
The survey conducted by ICICI Lombard found that about 25% customers prefer long term policies. Mr. Jain said that the company is now looking for five-year policies.
To attract buyers, the long-term policies comes with lower premium, lock in for third party insurance rates as well as benefits of higher ‘no claims’ bonus.