Yamaha Motor India Sales is seized of the issue of most two-wheeler owners not caring to renew vehicle insurance cover after first year and its implications.
“It’s basically up to insurers to send out reminders,” Roy Kurian, vice-president of the company, told Business Line here.
NOT WILFUL
It was not one’s case that the latter choose to default wilfully. It was rather likely that the deadline would have escaped the mind, he said.
A valid motor insurance policy is mandatory as per laws and is as critical as wearing helmets and carrying necessary vehicle documents.
But there were only a small percentage of riders who abided by the law beyond the first year of insurance cover.
Defaulters forfeited protection against natural and manmade calamities, damage to vehicle in transit by road, air, inland waterway or rail. Policy cover could also be opted for passengers/pillion riders.
It also protects against legal liabilities arising due to third-party’s injury/death or damage caused to property.
“We will take up the issue with dealers. At the corporate level, we intend to engage insurer companies on what could be done,” Kurian said.
Earlier on Thursday, Masaki Asano, managing director, inaugurated the company’s 18{+t}{+h} dealership at Chakai here. He said the company proposed to expand network further in the State.
There was a growing demand for two wheelers in the tier 2 and tier 3 cities. In South India alone, Yamaha had 110 dealership networks. It proposes to add another 20 by end of this year.
South was a crucial market and that was why the company chose to launch Ray, its first scooter, in Hyderabad, Asano said.
MARKET DRIVERS
According to Kurian, women and youth were driving the market in Kerala. The company claimed a market share of 11 per cent here.
At the national level, despite a sluggish market, the company had clocked an average growth of 30 per cent in sales in the last six months.
Last year, Yamaha had announced investment of Rs 1,500 crore to set up its third facility in India, a spokesman said.
Production at the new plant near Chennai would start by 2014 with an initial annual capacity of four lakh units, which will be expanded to 18 lakh units by 2018.
This was in addition to the Rs 750 crore being invested in existing facilities in Surajpur for capacity expansion, product development and network expansion.