Edelweiss General Insurance has announced the launch of its Switch ‘Pay as you Drive’ (PAYD) add-on feature for its private car package policy. It is part of the company’s Switch 2.0 insurance product, its usage-based motor insurance product suite, which was launched in July 2022. Under that, the company also introduced the ‘Pay how you Drive’ (PHYD) add-on policy for private vehicle owners. Now, with the introduction of Switch PAYD, Edelweiss has become the first insurance provider in India to offer a product that combines pay as you drive and pay how you drive benefits into one policy.
Earlier in July, the Insurance Regulatory and Development Authority of India (IRDAI) revealed a new set of motor insurance rules that are usage-based. Policies under the new rule will allow the user to pay for insurance as per their automobile usage, under 'Pay as you Drive, Pay how you Drive' and floater policy for vehicles belonging to the same individual owner for private cars and two-wheelers.
Also Read: New 'Pay As You Drive, How You Drive' Motor Insurance Rule Announced
The Switch Pay-As-You-Drive add-on feature can be added as a supplement to any existing motor insurance.
Commenting on the launch, Shanai Ghosh, Executive Director & CEO, Edelweiss General Insurance, said, “We always believed that usage-based insurance has huge potential in India. We have been working on this concept since 2020 and have launched 2 products on the same concept under IRDAI’s sandbox. The regulator’s recent guideline on Motor OD add-ons bears testimony to our belief and we are extremely happy and proud to be the frontrunners in taking such innovative concepts to the customers. We have many more products in the works to strengthen this portfolio which will be launched soon.”
Switch Pay-As-You-Drive add-on cover will allow customers to get an attractive discount on their Own Damage (OD) premium depending upon their annual usage in terms of distance covered. Until now, under a regular motor policy, there was no difference in the premium paid by a customer who hardly used the vehicle when compared to a high usage vehicle owner. Now, the add-on feature can be added as a supplement to any existing motor insurance, and the premium will be charged according to the kilometres done by the car. In short, the lesser you drive, lesser the premium you would have to pay.
With Switch Pay-As-You-Drive the premium will be charged according to the kilometres done by the car.
The Pay as you Drive (PAYD) add-on will offer customers three slab options of Own Damage cover - up to 5,000 km; 5,000 to 7,500 km; 7,500-10,000 km annually. Based on their annual usage pattern, customers can opt for the slab that best suits their usage. Depending on the usage declared by the customer, Edelweiss will provide additional savings on the premium. In case the annual car usage goes above the slab opted for, the customer will have the option to buy a top-up cover for the additional usage. Edelweiss says that with this add-on, customers will be able to save up to 25 per cent on their premium, and it will be ideal for customers who have limited use of their car. Like people who work in a hybrid or WFH (Work From Home) environment, have company-provided transportation or use public transport for the work commute, etc.
Edelweiss General Insurance has launched Switch 2.0, again under the regulator’s sandbox initiative, that measures not just how much you drive, but also how well you drive. The company says that Switch incentivises good driving behaviour. The better your driving score, the lesser will be the premium you pay and vice versa. The aim is to encourage safe and good driving behaviour, along with offering savings on premiums.
