How you drive to decide your premium
Vijay C Roy
Chandigarh, July 22
Now, one can pay motor insurance premium on ‘as you drive, how you drive’ mechanism. Two insurers — Go Digit General Insurance and Bajaj Allianz General Insurance — have launched new products and many more will follow suit. The development comes after the Insurance Regulatory and Development Authority of India (IRDAI) allowed insurers to introduce such tech-enabled concepts in motor Own Damage (OD) policies.
How it works
Pay as you drive
- The discount will apply to anyone driving less than 10,000 km a year on an average
- The company will use odometer reading and telematics data to give the discount
Pay how you drive
- It gives customers the flexibility to choose their premium based on how they want to use their vehicle. It will take into account driving behaviour using telematics
Go Digit has launched ‘Pay as you Drive’ (PAYD) add-on feature for motor insurance OD policies. “Customers who drive less will now pay less with this add-on. The discount will apply to anyone driving less than 10,000 km a year on an average from the time vehicle was purchased. The company will use odometer reading, telematics data and annual kilometre opted to give the discount, which can go up to 25%,” it said.
Similarly, Bajaj Allianz General Insurance has launched an add-on ‘Pay As You Consume’ (PAYC), which can be opted by the customer along with the basic OD plan under package product, bundled and standalone OD cover. Customers can choose coverage based on their vehicle usage. They can also avail of additional benefit in premium for their safe driving.
Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance, said, “PAYC gives customers the flexibility to choose their insurance premium based on how they want to use their vehicle. This feature extends benefits to customers depending on their driving behaviour using telematics.”
On the new tech-based add-on cover, Indraneel Chatterjee, co-founder, RenewBuy, said, “It is a win-win situation for both insurers and consumers.”
