After the lockdown opens across the country, insurance companies are preparing to offer the option of paying the premium according to the kilometer of the vehicle. That is, the insurance premium will have to be paid accordingly. Accordingly, there is an option to choose between 2500, 5000 and 7500 kilometers. For this, insurance companies are offering 10 to 25% discount on purchasing the policy.
Insurance companies have named this policy ‘Pay as you drive’. That is, pay the premium according to the number of kilometers you drive in a month. About this new policy, experts in insurance sector say that this policy is more beneficial for those who own more than one vehicle.
Option to choose policy in three slabs
Insurance companies are offering the option to pay premium in three slabs according to the kilometers of the train. The customer can choose between three slabs 2500 km, 5000 km and 7500 km depending on their usage needs. Under this product, the customer has to first inform the approximate distance traveled by the vehicle for a period of one year. Based on that, the premium amount will be decided from the computerized system. Bharti AXA General Insurance is offering a 25% discount in premium if you opt for 2500 km.
Difficult to take care of kilometers
Director of Probus Insurance Rakesh Goyal said that according to driving on behalf of insurance companies, the option of paying premium is beneficial for those who have more than one vehicle. If they drive in a different way, they can be saved. * The biggest problem for a trainer is to take care of kilometers.
Special features of the policy
- Option to choose three slabs in the policy according to driving
- Odometer readings, KYC details and consent form have to be filled for taking the policy
- On Damage premium will be calculated based on the premium of the chosen slab
Online shopping facility
Most insurance companies are providing the option of purchasing a premium payment policy online as per the driving conditions. Bharti AXA General Insurance has announced its partnership with web aggregator PolicyBazaar.com to sell policies.
10 thousand policy to sell in six months
Compulsory insurance companies will have to sell 10,000 policies in six months to offer ‘Pay as You Drive’ as a regular insurance policy. If companies do not meet IRDA’s target, the policy will have to be discontinued.