Pay As You Drive motor insurance policy launched by Bharti AXA and PolicyBazaar
Pay As You Drive motor insurance policy : Bharti AXA General Insurance and PolicyBazaar.com, an online insurance aggregator, have come together to launch usage-based motor insurance coverage called ‘Pay As You Drive’ in India.
The usage-based motor insurance product was shortlisted by the Insurance Regulatory and Development Authority of India (IRDAI) for its regulatory sandbox project. Bharti AXA General Insurance and PolicyBazaar.com will be offering the new motor insurance policy to private car owners under the same regulatory sandbox project.
As users have varied usage of cars, the new motor insurance solution is expected to come as a boon to those who don’t drive often.
Sarbvir Singh – CEO of PolicyBazaar.com, commenting on the Pay As You Drive motor insurance policy, said: “We believe innovative products like these are the way forward for the industry and are glad that Bharti AXA has taken a lead to create this product under the regulatory Sandbox introduced by the Irdai.”
Through the newly launched motor insurance product, car owners can pay the premium based on the distance travelled in kilometers by their vehicles. To avail this, policy buyers have to pre-declare the usage of their cars for one full year, as per the terms of the policy. The insurance premium is calculated dynamically based on the pre-declared distance in kilometers given by the user.
Bharti AXA General Insurance and PolicyBazaar.com are providing Pay As You Drive motor insurance policy in three slabs – 2,500km, 5,000km, and 7,500km for the policy buyers to pick from based on their required usage.
Commenting on the Pay As You Drive motor insurance policy, Sanjeev Srinivasan – Managing Director and CEO of Bharti AXA General Insurance said: “We are very happy to join hands with PolicyBazaar.com to distribute ‘Pay As You Drive’ motor insurance policies under the Sandbox project.
“The emerging culture of shared mobility and work from home makes the usage-based motor insurance a very pertinent product for car owners, where they can pay the premium as per the usage of the car.
“We believe the partnership for ‘Pay As You Drive’ will help us offer the need-driven motor insurance to the car owners more seamlessly and make thecustomer-centric insurance a reality.”