Mumbai, HDFC ERGO General Insurance Company, a leading private sector insurance company, announced the launch of its ‘Pay as you Drive’ program; An insurance solution that offers distance based insurance to reduce the upfront costs of premiums. HDFC ERGO launches ‘Pay as you Drive’ program to reduce costs of premium
This policy will be best suited for customers who prefer to drive less or have multiple cars some of which drive less than others. The program, under the regulatory sandbox, covers 10,000 policies or Rs. Premium of Rs 50 lakh whichever is earlier and is exclusively offered by Maruti Suzuki Insurance Broking Pvt Ltd.
Many consumers do not use their vehicles frequently and pay the same insurance premiums as everyday vehicle users. The “Pay as you drive” program offers the opportunity to pay a premium based on the actual use of the car.
The driving distance in the vehicle will be measured using a telematics device, which will help save between 10-20% of their ‘own loss’ premium depending on the distance slab chosen by the customer.
Speaking on the launch of Pay as You Drive program, Mr. Parthanil Ghosh, President, Motor Business, HDFC ERGO General Insurance Company, said, “We are always committed to providing products and services tailored to the needs of our customers.
With the ‘Pay as you drive’ program, we are addressing a latent need in the market, in which some customers who occasionally drive their car may pay a lower premium to suit the risk exposure. This technology-enabled solution is expected to set a new precedent in the motor insurance segment by offering customers value and savings based on car usage. ”