This company to offer ‘pay as you drive’ motor insurance policy
This company to offer ‘pay as you drive’ motor insurance policy

In the present situation, if your car runs in a limited way, then the motor insurance called 'Pay as you drive' has come in the market for you. Under this motor insurance, premium has to be paid based on the running of the vehicle. For this, an estimate of the running of the vehicle will have to be given before getting insurance. The Insurance Regulatory and Development Authority (IRDA) has recently given permission to launch this motor insurance as a pilot project. Along with insurance company Bharti AXA General Insurance, two more companies are selling this policy as a pilot project for the next one year. To make this policy permanent, insurance companies will have to sell 10,000 policies in the next six months.

For your information, let us tell you that Bharti AXA is selling this insurance in association with PolicyBazaar. Companies are also selling this policy online. Under this, the customer has to give an estimate of the running of the car for one year in advance. Customers are given three segment options of 2500 km, 5000 km and 7500 km. They have to choose one of these. The premium is determined by calculating the distance by dynamic method. 'Pay as you drive' is suitable for customers who have multiple vehicles and do not use every vehicle that much. It is also useful for people who travel daily by public transport or come out of the city frequently and use their personal vehicle only occasionally.

According to Bharti AXA regarding this matter, customers will have to give odometer reading, KYC details and customer consent form to take the policy. On-Damage (OD) premium will be calculated after factoring the premium benefit as per the declared distance. The policy issued will have all coverage under Standard Motor OD cover for a period of one year. Apart from this, if customers drive more than the pre-declared distance, then in that case they will also have the option of moving to the above segment in the middle of the policy period or transfer to the normal motor on-damage cover. In both cases, additional premium will be charged from the customer.

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