ICICI Lombard has launched a slew of innovative solutions — Motor Floater Insurance, Pay-As-You-Use and Pay-How-You-Use – to further enrich customer experience in motor insurance.
The Motor Floater offer is in line with the recent announcement made by IRDAI. It will enable those individuals owning multiple vehicles to insure their vehicles, including cars and two-wheelers, under one policy with a single renewal date and a comprehensive cover.
As a result, now there can be a single Motor Insurance Policy for vehicles owned by them. This new offering makes it convenient for customers to have a single policy and renewal date for all their motor policies along with single premium. At the same time, customers opting for the Motor Floater offering will be provided a lower premium for their multiple vehicles insured under the Motor Floater offering. Overall, it will save customers’ efforts of maintaining multiple motor insurance policies for each vehicle owned by them.
The full benefits of the No-Claim at each vehicle level will be preserved under the Motor Floater offering when one shifts from independent policies to the Motor Floater policy. In case of no claims during the policy period, a no claim bonus is offered to policyholders on renewals as per the applicable slab and up to 50%. Under this product, customers can also make additions and deletions at any point of time during the policy tenure.
Furthermore, Telematics add-ons are offered to convert the base motor product into an ‘Asset cum Usage’ based product. The premium charged for the insurance of the base motor vehicle would depend partially on the usage. The Add-ons will be effective for the same period as the Motor Own Damage under the relevant section of the policy unless and until stated other-wise.
Under the Telematics add-ons, customers can opt for different plans like:
Pay-As-You-Use (PAYU): Under this plan, customers would be provided the flexibility to choose from different “Kilometers” depending on usage. Hence premium of the policy would be limited only to the extent the vehicle is used or estimated to be used by the customer. In case of exhaustion of the initially purchased “Kilometers”, customers can also top-up the kilometers during the policy period. Coverage under this Add-on would be valid only if the purchased Kilometres (or additional grace Kilometres provided to customer) remains partially or fully used at the time of occurrence of loss.
Pay-How-You-Use (PHYU): Under this plan, premium charged would change as per the driving behaviour score. A customer with good driving behaviour can avail attractive discounts over the base premium of the policy. This policy would reward the good driving behaviour and would also inculcate and encourage adoption of good driving habits by dis-incentivising bad driving behaviour.
Commenting on the launch, Sanjeev Mantri, Executive Director, said “Over the years, the regulator has played a substantial role in encouraging innovation in the industry and the announcements made recently for the motor insurance space specifically would mark as yet another revolutionary step in that regard. Maintaining multiple policies for motor vehicles owned by an individual has always been a tedious task. With these offerings, customers can now maintain a single policy that will provide uniform coverage to all the vehicles owned by them.”
Adding further, he said, “Similarly, Pay-How-You-Use and Pay-As-You-Use would go a long way in ensuring additional transparency and convenience for the end customer as these add-ons would precisely give them an idea of the coverage and incentivize both good driving and distance run with lower premiums.”