Motor vehicle insurance is most commonly used insurance by everyone in the country. we can not even imagine Indian individual without two -wheeler and followed by insurance. Now Private insurance company has announced the launch of ‘Pay-as-you-drive’ add-on feature to its motor insurance product portfolio. It benefits vehicle-owners with low usage to earn a discount of up to 19 percent on annual premiums. Vehicle-owners can avail this benefit of wide coverage of policy, along with some other policies. The insurance regulator had, on July 6, allowed general insurance companies to offer new, add-on covers along with two-wheeler motor policies’ own damage component. That is, you can buy these optional covers along with your base policy by paying an additional premium. IRDAI approved initial grant to add-on concepts such as ‘Pay-as-you-drive’, ‘Pay-how-you-drive’ and single floater policy for a retail policyholder’s multiple two-wheelers or cars.
“The increasing of technology has created a relentless pace for the insurance fraternity to rise up to interesting yet challenging demands of the millennials. The general insurance sector needs to keep pace with and adapt to the changing needs of the policyholders,” the insurance regulator said in a circular. “Introduction (of these options) will aid in giving the much-needed fillip to motor own damage insurance in the country and increase its penetration.”
Digital’s new add offers discounts to its customers driving less than 10,000 miles per year on an average from the time it was bought by the current owner from the showroom. The company will use odometer reading, telematics data and annual miles opted to offer this discount, which can go up to 30%.