HDFC ERGO Launches Innovative Motor Insurance Contract Under IRDAI Sandbox Program – CRN
HDFC ERGO General Insurance Company, a leading private sector general insurance company, has announced the launch of its ‘Pay while you drive‘ program ; an insurance solution that offers distance-based insurance to reduce upfront premium costs. This policy will be more suitable for customers who prefer to drive less or have multiple cars, some driving less than others. This program, as part of the regulatory sandbox, is applicable for 10,000 policies or 50 premium lacs, whichever comes first, and is offered exclusively by Maruti Suzuki Insurance Broking Private Limited.
Many customers do not use their vehicle frequently and end up paying the same insurance premiums as daily vehicle users. The “Pay as you drive” program offers the possibility of paying a premium based on the actual use of the car. Driving distance will be measured using an in-vehicle telematics device, allowing customers to save between 10-20% of their “Own Damage” premium depending on the distance tiles chosen by the customer.
Speaking about the launch of the Pay as You Drive program, Mr. Parthanil Ghosh, President – Motor Business, HDFC ERGO General Insurance Company said, “We have always been committed to delivering products and services that meet customer needs. With the “Pay as you drive” program, we are responding to a latent need in the market, whereby customers who occasionally drive their car could pay a lower premium proportional to the risk exposure. This technology-based solution is expected to create a new priority in the auto insurance segment by providing customers with value and savings based on car usage. »
The program will be available to owners of new Maruti Suzuki cars in select cities until May 14, 2022.