Edelweiss General Insurance (EGI) has announced the launch of an app-based Motor OD floater policy called Edelweiss Switch. Launched under IRDAI’s Regulatory Sandbox, the motor insurance policy is a driver-based policy which means the vehicle owners can choose to activate or deactivate based on whether they’re driving on a particular day. Another highlight of Switch is that it can cover more than one vehicle at a time under one policy.
Pointing out to differences between Edelweiss Switch and other motor OD policies, the company states that Switch is a driver-based insurance package, under which the insurance is ascertained according to the age and experience of the driver. Edelweiss Switch can offer significant cost savings by allowing vehicle owners to pay the premium only on the days they use the vehicle.
Depending upon whether they’re driving their car during a week or a particular day, vehicle owners can easily switch the insurance policy on or off through the app. It should be noted that while the policy covers accidents only when it is switched on, cover for fire and theft will be active all days throughout the year, irrespective of whether the policy’s status is ‘on’ at the time since fire and theft can happen even while the vehicle is in parking or storage.
This Driver Based Insurance will mean lower premiums for policyholders, as they will only pay as per usage, says Shanai Ghosh, ED & CEO, Edelweiss General Insurance. In addition to this, being able to cover multiple vehicles under one policy will add to the savings, especially for those customers who own multiple vehicles, he added.
The ‘pay as you use’ model will be especially useful for the days customers have to park their cars for a long time and they lose insurance policy period while the car is in a standstill, for example, thousands of cars have been grounded for over a month due to the coronavirus lockdown losing insurance policy days for nothing.
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