23/05/2024

Care Health

Prioritize Healthy life

New Usage-Based Car Insurance Add-On Cover

In the ever-evolving landscape of the insurance industry, there is a continuous quest to provide customers with policies tailored to their needs. One such popular innovation that has gained important traction recently is usage-based car insurance. Traditionally, car insurance premiums have been calculated based on various factors such as age, gender, the make and model of the vehicle and driving record. However, with the advent of advanced telematics technology, insurers can now monitor and evaluate individual drivers’ actual usage patterns. This has made way for a new usage-based car insurance add-on cover, which offers a more personalised and cost-effective approach to auto insurance. In this article, we will look into the intricacies of this emerging trend, exploring its benefits, drawbacks, and implications for insurers and policyholders.

The ‘Pay As You Consume’ (PAYC) add-on motor insurance cover was introduced by the Insurance Regulatory and Development Authority of India’s Sandbox Regulations. This usage-based add-on motor insurance policy is consistent with a recent IRDAI circular that permits PAYC for annual motor products. #

All aspects of the insurance can be managed in an easy-to-use car insurance mobile app.

Customers can select coverage based on how much they drive their car each year, which will also affect how much they pay in premiums. According to the insurer, customers can also take advantage of an additional premium benefit for safe driving. ^

Customers don’t need to worry if their chosen number of kilometres during the policy period runs out because they can use the top-up plan to add more kilometres to their goal. The “GRACE KM” gratification, offered at the time of claim in case kilometres chosen during the policy period get exhausted, is provided by the company if a customer does not remember to add kilometres to their top-up plan. Customers can also carry out the process of car insurance renewal online.

The introduction of usage-based car insurance add-on cover marks a significant shift in the car insurance industry, as it introduces a more personalised and dynamic approach to pricing policies. By leveraging advanced telematics technology, insurers can now assess individual policyholders’ driving behaviour and patterns, allowing for a fairer and more accurate calculation of premiums. This incentivises safe driving practices and allows drivers to lower their insurance costs.

However, as with any new development, certain challenges and considerations must be addressed. Concerns over privacy, data security, and the potential for increased surveillance have been raised, and insurers must prioritise transparency and data protection to build trust among policyholders. Furthermore, the effectiveness of usage-based insurance in reducing accidents and promoting safer driving remains a topic of ongoing research and debate. ##

Get insured anytime, anywhere! Check out the Bajaj Allianz General Insurance website to learn more and download the app now.

* Standard T&C Apply

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

^ Claims are subject to terms and conditions set forth under comprehensive two-wheeler insurance policy.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.