New Franchisee Partner Solicitation Guide for Two Wheeler Insurance

If you have recently joined as a new franchisee partner with us, a very warm welcome to you. We heartily congratulate you for the courage to venture into business on your own. You will find us by your side at every step of the journey.

As part of our efforts to equip you to become an independent business owner, it is very important that we provide our franchisee partners with appropriate training and resources. We especially aim to equip them with the capability to make a strong enough positive impression that the client will want to make a purchase. This article will focus on the topic of two-wheeler insurance and how to become an effective advocate for the importance of two-wheeler insurance, with the ultimate goal of making a sale.

While approaching a potential client for the sale of two-wheeler insurance policy, you as a Franchisee Partner Insurance Agent should highlight the following points about two-wheeler insurance. This will help to show the importance of two-wheeler insurance for the client.

– It is mandatory by law to purchase vehicle insurance, at least a third party cover in India – It is illegal to operate a vehicle on public roads without insurance, and if caught the rider will face a hefty fine and possible jail-time under the Motor Vehicles Act, and the law declared by the Supreme Court. Thus it is very important to promptly renew two-wheeler insurance when it expires to avoid the risk of arrest on the road. There are so many people arrested every day on Indian roads and they have to face the Courts to are forced to pay expensive bribes by the police, all because they were too lazy to renew their insurance, or found it too inconvenient. This is where GST Suvidha and you as your business partner come in. We will offer a feature-packed policy at extremely affordable prices, and most importantly the entire process can be completed online providing a hassle-free experience for the client.

– There basically two types of insurance cover available– Third party cover and comprehensive cover. Third-party insurance only covers the damages caused to other people in an accident, which was the fault of the insured. It is cheap, convenient and hassle-free. As mentioned before, riding a bike without third party insurance anywhere in India is illegal under the Motor Vehicles Act. The injury caused may be to a person or property of another. However, it does not cover any medical injuries or property damage sustained by the rider himself. Whereas comprehensive cover includes third-party liability and additional damages sustained by the rider and his property also, up to a greater amount than third party insurance.

– The comprehensive policy may have higher premiums but it is worth it-  As an insurance agent, you will receive a higher amount of commission for the sale of comprehensive insurance v/s third-party insurance. However, it is important to point out that purchasing comprehensive insurance is better for the client also.

The majority of third party insurance limit is 1 lakh. The IRDA caps liability to opposite party vehicles at 7.5 lakhs. However, in case of a serious accident the real damages suffered exceed far beyond the above amount. Further, both criminal and civil cases are filed against the accused rider. And there is no limit to the amount of damages claimed due to personal injuries. Third-party cover is thoroughly insufficient to meet all the liabilities, and the rest of the money will be recovered from the personal property of the insured. However, if the client purchases the comprehensive cover, the amount is covered is a lot higher than third party cover and may be sufficient to pay off all the debts owed to third parties in case of an accident without the need to pay anything out of own pocket.

Further, comprehensive cover will even cover medical costs and vehicle repair costs sustained by the client himself, which third party liability does not cover. Thus even though third party cover offers lower premiums, the additional benefits covered by the comprehensive insurance is a much better deal in the long run when the time of claims come. The extra investment is well worth it.

– It is simply disadvantageous and less profitable for the insured to buy two-wheeler insurance from the dealership-  A lot of people purchase vehicle insurance straight from the showroom itself. While this has become a common practice, it is important to let people know that that it is not necessary to. And that they will get a lot better deal if they purchase insurance from third party insurance dealers like you in the open market. We have cheaper plans with better features than what the showroom can offer.

You see, tying up with insurance companies has become a big business for dealerships. They receive a fat commission on the final value of the insurance policy. The bigger the amount, the bigger commissions they get. That is why, aggressively try to push unnecessary features and add-ons, sometimes unscrupulously without even the knowledge of the client (which is downright illegal by the way) into their policy. They exploit the fact that buyers purchase an insurance policy directly from the dealership because it is easier.

It is your job to let the clients know that purchasing insurance from GST Suvidha Kendra through you will not only give them a cheaper price with better features but is also extremely easy and convenient. The whole process can be completed online, with minimum documentation and no hard copies required. Further, you will provide assistance with every step of the way and our easy to use interactive software will do the rest.