New India offers 5% discount on motor covers bought online

MUMBAI: The country's largest non-life insurer New India Assurance has said that it will charge customers up to 5% lower rates for motor car insurance purchased online. The company is also developing a host of new low-cost products such as householder's policies and personal accident covers which are tailor-made for being sold online .
The retail products being sold directly include private car and two-wheeler insurance, health insurance, personal accident and overseas mediclaim policies.Insurance companies pay up to 15% commission on retail products to their distributors. In the case of motor insurance, the procurement is done largely by car dealers.
G Srinivasan, chairman, New India, said that the online platform is a part of the implementation of a core insurance solution provided by TCS. The online purchase facility is available for only those who buy comprehensive insurance.