HDFC ERGO General Insurance Company has launched the ‘Pay As You Drive – Kilometre Benefit’ add-on cover for all its private car owners. According to the company, under the new add-on, anyone driving less than 10,000 km in a year can benefit up to 25% of their own damage premium, subject to the odometer reading.
Even if a customer drives beyond a certain limit, the individual will not be penalised for it and will stay covered under their private car insurance policy, noted HDFC Ergo.
In addition, at the expiry of the policy period, the customer, subject to providing distance travelled, will have the flexibility to claim the benefit irrespective of the decision to renew or not to renew their policy with HDFC Ergo.
Parthanil Ghosh, President – Retail Business, HDFC ERGO General Insurance Company, said, 'The innovative solution we have launched today will not only do away with ‘one-size-fits-all car insurance premium’ but will also empower customers to customise their own damage policy with better control over the premium, keeping intact the simplicity of the traditional motor insurance policy.'
The benefit opted will be applied at the end of the policy year on submission of distance travelled.