ICICI Lombard crosses a Milestone in Long Term Two Wheeler Insurance Policy

Did you know that there are a whopping 15.2 crore two wheels on Indian roads? Each day these two wheelers maneuver various traffic hazards & yet 60 to 70% of them are uninsured!!! Startling, isn't it? Even when the number of two wheelers involved in road accidents is considerable higher, there are many reasons for not buying/renewing  insurance. Cumbersome process, lengthy paperwork & most of the times, two wheeler owners skip renewals after buying insurance policy after their first year. What if, a comprehensive two wheeler insurance product that actually saves time & encourages savings exists in the market? Would that not be appreciated widely by consumers & reduce the non- renewability rate?

Recently ICICI Lombard, one of the leading private sector general insurance companies in India achieved a milestone in long term two wheeler insurance policy- an astounding 500,000 policies were sold in year one itself. Not only the business numbers but the overall consumer satisfaction regarding the policy is all time high! A very high number of customers- almost 94 % would recommend the policy to others. The policy has been purchased in metros as well as smaller cities, which shows the customer satisfaction regarding the policy is widespread & not restricted to only urban metros due to its salient features.

(L-R) Mr. Amitabh Jain, Head – Motor, underwriting, claims and reinsurance, Mr. Sanjay Datta, Chief underwriting claims and reinsurance  and Girish Kalra, Vice President - Marketing & Corporate Communications, ICICI Lombard.

The small milestone achievement meet held by ICICI Lombard recently helped us understand the key features of the long term two wheeler insurance policy. A few impressive ones are:

- The policy is one of its kind of product not only in India, but globally too
- Saving of 10 – 15% on premium for 2/3 year policy
- No change in premium during policy duration
- Higher NCB (No Claim Bonus) compared to traditional one year policy
- Choice of tenure - 2/ 3 years

Due to its all round beneficial approach for consumers, the policy has garnered INR 100 crore premium milestone within 9 months of launch with 35% of its customers being first time two wheeler insurance customers. 40% customers purchased 3 year duration policy that showcased the need for such a comprehensive long term two wheeler insurance policy product. Few consumers were quizzed about key questions regarding two wheeler insurance policies & one such question “There are a lot of people who do not renew two wheeler insurance. Do you think such long term policies will help in attracting people whose policy get lapsed / do not renew their policy? gave an interesting insight about customer behavior when 80% consumers confirmed that they would buy such a policy.

The convenience offered by ICICI Lombard’s long term two wheeler insurance policy is multi-fold- its available instantly via offline & online methods, the premium is fixed for 2/ 3 years, there is no need to renew every year amongst other features.

A quote by Bhargav Dasgupta, MD & CEO, ICICI Lombard General Insurance Company’s best summarized this milestone achievement: "I am sure that this innovative yet simple product backed by our distribution muscle and digital prowess will significantly address the issue of 60-70% two wheelers currently plying on roads without insurance."

ICICI Lombard's long term two wheeler insurance policy is a positive step towards safety for the huge number of two wheelers on Indian roads.