According to Bharti AXA General Insurance, premium for the new motor insurance product is calculated based on pre-declared distance mentioned by the car owner prior to taking the policy
Bharti AXA, PolicyBazaar launch usage-based motor insurance policy. (Credit: Pexels from Pixabay)
Bharti AXA General Insurance has joined forces with online insurance aggregator PolicyBazaar.com (PolicyBazaar) to sell usage-based motor insurance coverage in India dubbed as ‘Pay As You Drive’.
The general insurance company said that its proposal for a usage-based motor insurance product was shortlisted by the Insurance Regulatory and Development Authority of India (IRDAI) for its regulatory sandbox project.
The company said the scheme, which will be offered under the regulatory sandbox project, is for private car owners. It added that with car usage being hugely varied across users, the new product benefits those who do not drive frequently.
With the usage-based motor insurance, customers can now pay the premium based on the kilometers their cars have travelled, said the company, which is a joint venture between Indian conglomerate Bharti Enterprises and French insurance group AXA.
Premium for the new motor insurance product calculated based on pre-declared distance
According to Bharti AXA General Insurance, customers have to pre-declare the usage of their vehicle for a period of one year, under the terms of the policy. Based on that, the insurance premium is dynamically calculated on the pre-declared distance mentioned by the user in kilometers.
Bharti AXA General Insurance and PolicyBazaar are offering three slabs of 2,500km, 5,000km, and 7,500km for the customers to choose from based on their usage requirements.
Bharti AXA General Insurance managing director and CEO Sanjeev Srinivasan said: “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.”
Sanjeev Srinivasan added that Bharti AXA General Insurance believes the partnership for the ‘Pay As You Drive’ solution will enable it to provide the need-driven motor insurance to the car owners more effortlessly and for making the customer-centric insurance a reality.
PolicyBazaar CEO Sarbvir Singh 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.”