Bajaj Allianz General Insurance today announced the launch of its add-on motor insurance cover, called ‘Pay As You Consume’ (PAYC). The company claims to be the first to launch ‘Pay As You Consume’ under the IRDAI’s Sandbox Regulations, and owing to the overwhelming response from customers, it has launched this as a full-fledged cover under motor insurance products.
This usage-based motor insurance add-on cover is in alignment with IRDAI’s recent circular to allow PAYC under annual motor products. The pay-as-you-consume add-on cover can be opted by the customer along with the basic OD plan under Package Product, Bundled and Standalone OD cover.
Customers can choose coverage based on their vehicle usage, further to which the premium will be calculated, i.e., kilometres driven annually. Customers can also avail of an additional benefit in premium for their safe driving.
Earlier this month, the Insurance Regulatory and Development Authority of India (Irdai) permitted general insurers to issue sophisticated add-ons for a motor insurance policy. These are telematics-based motor insurance plans for which the premium depends on the usage of the vehicle or driving behaviour.
The ‘Pay as You Consume’ cover principally empowers customers to choose their premium and make their own policy. Keeping customization at its centre, customers can opt for their premium as per the plan they select, depending on the need and usage of their vehicle.
This product offering not only lets you decide your premium, but it also lets you decide your coverage as well and provides benefits for safe driving behaviour. The company will offer this modular product through an omnichannel approach across the country.
Customers can choose coverage based on their vehicle usage, further to which the premium will be calculated, ie kilometres driven annually. Customers can also avail of an additional benefit in premium for their safe driving, the insurer added.
