Insurance Regulatory and Development Authority of India (IRDAIThe new guidelines allow general insurance companies to introduce tech-enabled concepts for Motor Own Damage (OD) cover. According to a release, EGI has been developing this range for over two years with telematics enabled, app-based products.
Switch Pay-as-you-drive add-on cover allows customers to avail a discount on their own loss (OD) premium based on their annual usage in terms of distance covered. Till now, under a regular motor policy, there was no difference in the premium paid by a customer who rarely used the vehicle as compared to the owner of a high usage vehicle. Now, with this add-on feature, the product can be added as a bolt-on to the existing motor insurance products. The premium will be charged on the basis of the kilometers traveled by the car. Drive less, pay less with this add on.
The Pay As You Drive (PAYD) add-on gives customers three slab options of own damage cover – up to 5,000 km; 5,000 to 7,500 km; 7,500-10,000 km annually. Based on their annual usage pattern, customers can opt for the slab that best suits their usage. Customers will be able to save up to 25% on their premiums with this add-on. If the annual car usage goes above the chosen slab, the customer can buy a top-up cover for additional usage.
This product is ideal for customers who want a hybrid or . work in WFH Environment, or company provided transportation or use public transportation for commuting to work, retired customers, people with multiple cars who use their secondary vehicles sparingly.
Commenting on the launch, Shanai Ghosh, Executive Director and CEO, Edelweiss General Insurance, said, “We have always believed that there is a huge potential for usage-based insurance in India. We have been working on this concept since 2020 and have launched two products on the same concept under the sandbox of IRDAI.
General Insurance commenced operations in 2018 and has presence in digital marketing locations and partnerships Policybazaar IndiaPhonepe, Ola, ClearTrip, Dunzo, Intermiles, PayNearby, Instakart, Pazcare etc.