Bharti AXA General joins hands with PolicyBazaar to sell 'Pay As You Drive' Motor Insurance
Kolkata/IBNS: Bharti AXA General Insurance announced on Wednesday that it has entered into a partnership with leading web aggregator PolicyBazaar.com to sell ‘Usage-based Motor Insurance’ policies for private car owners under the regulatory Sandbox project.
The usage-based motor insurance, popularly known as ‘Pay As You Drive’, allows customers to pay the premium depending on how many kilometers the car has travelled.
Under this product, a customer pre-declares vehicle usage for a period of one year, the insurance agency said.
The insurance premium is calculated dynamically as per the pre-declared distance in kilomerter and customer can choose from three slabs - 2500 km., 5000 km. and 7500 km – as per their usage need, the insurance agency said.
Announcing the partnership, Bharti AXA General MD and CEO Sanjeev Srinivasan, 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 the customer-centric insurance a reality.’’
Bharti AXA General Insurance’s proposal for a usage-based motor insurance product was shortlisted by the Insurance Regulatory and Development Authority of India for its regulatory sandbox project, the company said.
PolicyBazaar.com CEO Sarbvir Singh said, "We believe innovative products like ‘Pay As You Drive’ are the way forward for the industry and are glad that Bharti AXA has taken a lead to create this product. This offering further strengthens our partnership and customer-centricity commitment.”
Customers can buy the ‘Pay As You Drive’ product by Bharti AXA General Insurance from Policy Bazaar in three steps, according to the insurance agency.
They have to select the plan as per the usage pattern from the three available slabs and provide odometer reading, KYC details, and customer consent form, as per the regulatory requirement.
Own damage (OD) premium will be calculated post factoring the premium benefit as per the pre-declared slab.
The issued policy will have all the coverage under standard motor OD cover for the tenure of one year.
Apart from enjoying extra premium benefits as per the declared usage slab, Srinivasan said, the customer also has the option to move to a higher slab in the middle of the tenure or make a transition to standard motor own-damage cover, in case of driving beyond the pre-declared kilometers.
The additional derived premium for both cases will be recovered from the customer, according to the insurance agency.
The agency also said that even if the policy is not renewed in case of breach of kilometers, the liability coverage of the policy would be still valid for the entire duration of the policy, and any third party claim arising during the policy tenure would be treated as per existing liability claims practice.
‘Pay As You Drive’ is ideal for customers who have multiple vehicles and may not use each vehicle as much as well as for those who use their personal vehicles for select occasions and prefer to udnertake daily commute by public transport; therefore, they may not have to pay a large premium amount, the agency said.
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