IRDAI’s new guidelines permitting general insurance companies to introduce tech-enabled concepts for Motor Own Damage (OD) cover has come as a shot in the arm for the digital insurer to launch usage-based insurance and has been developing this category for over two years, with telematics enabled, app-based products.
Switch Pay-As-You-Drive add-on cover allows customers to get an attractive discount on their Own Damage (OD) premium depending upon their annual usage in terms of distance covered. Until now, under a regular motor policy, there was no difference in the premium paid by a customer who hardly used the vehicle when compared to a high-usage vehicle owner.
Edelweiss General Insurance changed this with the introduction of Switch, two years ago. Now, with this add-on feature, this product can be added as a bolt-on to existing motor insurance products.
The premium will be charged according to the kilometers traveled by 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 5000 km; 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. Depending on the usage declared by the customer, EGI will provide additional savings in the premium. Customers will be able to save upto 25 per cent on their premium with this add-on. In case the annual car usage goes above the slab opted for, then the customer can buy a top-up cover for additional usage.
This product is ideal for customers who work in hybrid or WFH environments, have company-provided transportation, or use public transport for work commutes, retired customers, and people with multiple cars who use their secondary vehicles sparingly. Customers who have limited use of their cars can have significant saving on their annual premium.
Edelweiss General Insurance continues to offer innovative, personalized solutions to customers. It is among the first companies to introduce usage-based motor policies in India. The company was the first to introduce India’s only on-demand motor insurance, SWITCH, in 2020 under IRDAI’s Sandbox initiative. A usage-based product that allowed customers to switch on and off their insurance.
With the overwhelming and positive response from customers and the regulator’s support, EGI launched SWITCH 2.0, again under the regulator’s sandbox initiative, which measures not just how much you drive, but also how well you drive. SWITCH incentivises good driving behavior. The better your driving score, the lesser will be the premium you pay, and vice versa. The aim is to encourage safe and good driving behavior, along with offering savings on premiums.
SWITCH allows customers to control how much they drive and how well they drive and therefore the premium they pay. It places complete control in the hands of the customer simply because the lesser and better they drive, the lesser the premium they pay. SWITCH encourages people to become safer drivers which is good for their own safety, their family, and overall, society.