Bajaj Allianz bets big on two wheeler package policy

Bajaj Allianz General Insurance is eyeing for 30 per cent of its total two-wheeler insurance sales through long-term package policy by the end of this fiscal.

The private sector non-life insurer has already sold 6,000 such policies so far in 2016-17.

Two-wheelers can be insured for up to three consecutive years under this policy which was introduced at the beginning of the current fiscal.

"We have already sold 6,000 policies under the long-term two-wheeler package policy which was kicked off on April 1. We are looking at 30 per cent of our total two-wheeler insurance sales to happen through this policy by the fiscal-end," Bajaj Allianz General Managing Director and Chief Executive Tapan Singhel said today.

The company will use the telematics-based offering to reward customers showcasing good driving behaviour. The facility comes with 12 value-added features, providing not only safety and security to customers, but also savings and convenience, he told reporters on the sidelines of launch of the company's new offering called 'Drive Smart'.

The three-year long-term package for two-wheelers is currently available at an average annual premium of Rs 3,000.

"To achieve 30 per cent of the total two wheeler insurance sales by the fiscal-end through this route, we are banking on online sales which are currently responsible for 7-8 per cent of total two-wheeler sales," he said.

The company is quite bullish on this segment as more than 75 per cent of the two-wheelers in the country are not covered at present.

Of the total premium of Rs 5,900 crore achieved by the company during financial year 2015-16, 57 per cent was contributed by motor insurance alone, he said.

"Our market share under the motor insurance segment was currently at 11 per cent in terms of premium," the MD said.

On car insurance, he said a total of 21 lakh private cars were provided insurance cover by the company at an average premium size of Rs 7,000 in the fiscal gone by.

Talking about claims settled by the company during the last fiscal, he said "we settled a total of 6 lakh claims amounting to Rs 2,500 crore."