The General Insurance Company has come out with a scheme of long term policy – probably for 3-5 years- for two wheelers. This will thwart the non-renewal or lapse of insurance in the two wheeler segment, said the Secretary General of GIC. The disinterested agents are not in the routine process of renewing the insurance policies on the basis of amount involved –Rs600 to Rs800 per annum. The agents do not get much commission for these premiums. The insuring companies do not take much strain to remind the owners for these policies, but concentrate on cars and costlier vehicles.
The owners of the vehicles too are not serious nor honest to renew the policy. Hence the company has the proposal of long term policy to induce interest and relief for the owners. The statistics released by the Tariff Committee mentions that the number two wheelers insured in 2007-08 was about 2 crore. But the rough estimate of sale volume of two wheelers in the past 7 years amounts to 4.5crore, said Society of Indian Automobile manufacturers. It is estimated that every year 75 lakh two wheelers enter into the Indian roads and during this financial year 84 lakh vehicles have been added to the volume.