Edelweiss General Insurance (EGI) has launched Switch Pay As You Drive (PAYD) add-on for its personal car package policy, which adds to its usage-based motor insurance product suite in India. EGI earlier this month launched Switch 2.0, the only product in India that combines pay-as-you-drive and pay-how-you-drive benefits.
IRDAI’s new guidelines allowing general insurers to introduce tech-enabled concepts for Motor Own Damage (OD) cover has come as a shot for the digital insurer to be the first to launch usage-based insurance in the country. and 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, this 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.
The PAYD add-on gives customers three slab options of own damage cover – up to 5000 kms; 5000 to 7500 km; 7500-10000 km annually. Based on their annual usage pattern, customers can opt for the slab that best suits their usage. Based on the usage declared by the subscriber, EGI will provide additional savings in premium. 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 intended for customers who work in a hybrid or work-from-home environment, or have company-provided transportation, or use public transportation for work, retired customers, and people with multiple cars who Use your secondary vehicles sparingly. Customers who have limited usage of their cars can make significant savings on their annual premium.
EGI again launched Switch 2.0 as part of the regulator’s sandbox initiative, which measures not only how much you drive, but also how well you drive. The switch encourages good driving behavior. The better your driving score, the lower will be the premium you pay and vice versa. It aims to encourage safe and sound driving behavior while offering savings on premiums.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,