Bharti AXA General Insurance has partnered with web aggregator PolicyBazaar to sell ‘Usage-based Motor Insurance’ policies for private car owners in India under the regulatory Sandbox project.
Also known as ‘Pay As You Drive’, the Usage-based Motor Insurance’ policy enables customers to pay the premium based on how many kilometres the car has travelled. It allows customers to pre-declare vehicle usage for a period of one year.
According to their usage needs, the customer can choose from three slabs – 2,500 km., 5,000 km. and 7,500 km. The insurance premium is then calculated dynamically as per the pre-declared distance in km.
The policyholders will be able to select 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 kilometres.
Bharti AXA General Insurance managing director 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.
“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.”
The company’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 product is said to benefit those who drive less.
Commenting on this partnership, PolicyBazaar.com CEO Sarbvir Singh said: “We are excited about the launch of Bharti AXA’s ‘Pay As You Drive’ product on our platform. 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.”
The Pay As You Drive policy is currently available for purchase from Policy Bazaar.