Airtel Payments Bank tied-up with Bharti AXA general insurance co. to sell their two-wheeler insurance policy.
This two wheeler insurance is stated to offer 70 percent savings on annual premium, personal accident cover, protection against third-party liabilities and inspection-free renewal. Buyers can also avail towing services at no extra cost on claim intimation, in the event the insured vehicle breaks down.
The partnership would provide the company a wider reach and help it expand the bandwidth by offering two-wheeler insurance to a wider audience across the country.
The insurance is currently available on MyAirtel app and at over 40,000 Airtel Payments Bank banking points. Customers without an Airtel Payments Bank account can also buy this policy. The unique distribution network and digital assets allow them to reach millions of under-insured Indians.
At present, approximately 75 percent two-wheelers are uninsured (for third party segment) despite being mandatory by law. This is because of the lack of reach and distributor interest in pursuing small-ticket premiums, even more so in rural India.
A Supreme Court order in 2018 made it mandatory for individuals to buy a five-year motor third-party insurance while buying a new two-wheeler.
The order resulting in quick premium growth of the the insurance co’s & so the retail tie-ups are looking fruitful for the stake holders.