Mumbai, India (CU)_ HDFC ERGO General Insurance Company, a prominent private sector general insurance business, recently introduced its ‘Pay as you Drive’ program, which is a distance-based insurance solution that lowers the upfront premium expenses. This insurance will benefit the clients who drive less or who own many vehicles, with some of them driven less frequently than others. Under the regulatory sandbox, this scheme is applicable to 10,000 policies or INR 50 lacs in premium, whichever occurs first, and is available solely through Maruti Suzuki Insurance Broking Private Limited.
Many customers who do not drive their automobiles on a regular basis end up paying the same insurance costs as those of regular users. The “Pay as you drive” service enables you to pay a premium depending on your car’s actual usage. The driving distance will be calculated using a telematics device installed in the car, allowing clients to save between 10% and 20% on their ‘Own Damage’ premium, depending on the distance slabs selected by the customer.
Mr Parthanil Ghosh, President of Motor Business, HDFC ERGO General Insurance Company, commented on the launch of the ‘Pay as You Drive’ program. He said, “We have always been committed to offering products & services that address the requirements of the customers. With the ‘Pay as you drive’ program, we are addressing a latent need in the market, wherein customers who drive their cars occasionally could pay a lower premium commensurate to the risk exposure. This technology-enabled solution is expected to set a new precedence in the Motor insurance segment by offering customers value and saving based on the usage of the car.” The offer will be accessible to new Maruti Suzuki car owners in a limited number of cities until 14 May 2022.
