Bharti AXA General ties up with PolicyBazaar for 'pay as you drive' motor insurance policy
The usage-based motor insurance, popularly known as ‘Pay As You Drive’, allows customers to pay the premium depending on how many kilometres the car has travelled
Bharti AXA General Insurance, a joint venture between Bharti Enterprises, one of India’s leading business groups, and AXA, the insurance company, today announced its 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.
Accordingly, the insurance premium will be calculated dynamically as per the pre-declared distance in km. The customer can choose from three slabs - 2500 km., 5000 km. and 7500 km – as per his/her usage need.
Announcing the partnership, Sanjeev Srinivasan, MD and CEO, Bharti AXA General Insurance, “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.’’
Commenting on this partnership, Sarbvir Singh, CEO, PolicyBazaar.com, said, "We believe innovative products like these are the way forward for the industry.”
How it works
1) The customer needs to select the plan as per the usage pattern from the three available slabs.
2. They need to provide odometer reading, KYC details, and customer consent form, as per regulatory requirement.
3. Own damage (OD) premium will be calculated post-factoring the premium benefit as per pre-declared slab. The issued policy will have all the coverage under standard motor OD cover for the tenure of one year.
Apart from 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. 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. Further, 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 the customers who have multiple vehicles and may not use each vehicle as much. It is also useful for those who commute daily via public transport or frequently travel beyond city limits and rarely use their personal vehicle.
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