Edelweiss General Insurance (EGI) has launched the Switch Pay as you Drive (PAYD) add-on for its private car package policy.
EGI launched Switch 2.0 earlier this month, which is the only product in India that combines pay-as-you-drive and pay-how-you-drive benefits in the country.
The company has been working on this concept since 2020 and have launched two products on the same concept under IRDAI’s sandbox, noted Shanai Ghosh, Executive Director & CEO, Edelweiss General Insurance. Ghosh said, 'The regulator’s recent guideline on Motor OD add-on, bears testimony to our belief and we are extremely happy and proud to be the frontrunners in taking such innovative concepts to the customers.'
IRDAI’s new guidelines permitting general insurance companies to introduce tech-enabled concepts for Motor Own Damage (OD) cover have come as a shot in the arm for the digital insurer. 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.
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. The premium will be charged according to the kilometres traveled by car.
The Pay as you Drive (PAYD) add-on gives customers three slab options of Own Damage cover - up to 5,000 km; 5,000 to 7,500 km; 7,500-10,000 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.