In a bid to encourage customers to buy third-party motor insurance policies through its website the New India Assurance Company Ltd. will offer a discount of 5-10% on premiums for such policies.
Sri G. Srinivasan, Chairman & Managing Director, New India Assurance said, “We plan to allow customers to purchase standalone third-party motor insurance policies and householder policies shortly through our online portal.”
Normally, general insurance companies do not show interest offering third-party motor insurance as it is a loss-making portfolio.
The third-party motor insurance has been mandated in India. Third party cover refers to the covers provided by the insurance companies for damage caused to a third party standing by the road and got injured or killed by an insured vehicle. In such cases, the claim amount can be unlimited. In recent times, this portfolio of insurance has seen high claims ratios in excess of 120%.
