New India plans 'zero depreciation policy' for two-wheelers
"The company is actively considering to come up with a zero depreciation policy for two-wheelers, which is already being offered for cars," the official said.
Currently, the product is under the actuarial study to consider its viability, after which it will be filed for regulatory approval, he added.
In a zero depreciation policy, the customer gets replacement of its old parts with a new one in case of a need, which is not the case in the normal car insurance, for a nominally higher premium.
Some of other insurance players are providing zero depreciation policy for cars and the public insurer is actively considering to launch such product in the two wheelers segment.
On the dismantling of the 'declined motor pool', which is currently in force in the commercial vehicle segment, the official said the system should be continued for some more time before making any judgement over its sustainability.
The New India Assurance, country's largest general insurer has crossed Rs 10,000 crore mark in premium collection in the last financial year and aims to touch a global premium of Rs 12,000 crore this fiscal.
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