Mumbai: HDFC ERGO General Insurance Co has launched a ‘Pay As You Drive – Kilometre Benefit’ add-on cover for all its private car owners. Anyone driving less than 10,000 km in a year can benefit up to 25 percent of their own damage premium, subject to the odometer reading.
Speaking about the launch of the ‘Pay As You Drive – Kilometre Benefit’, Parthanil Ghosh, President – Retail Business, HDFC ERGO, said: “The disruption of technology in the insurance sector has acted as a stimulus for the insurance players who want to keep pace with the evolving needs of customers.”
“The innovative solution we have launched today will not only do away with ‘one-size-fits-all car insurance premium’ but will also empower customers to customize their own damage policy with better control over the premium, keeping intact the simplicity of the traditional motor insurance policy.”
The company has designed the customer onboarding journey to avoid any commitment pressure of maximum kilometers and stress of disclosure.
Even if customers drive beyond a certain limit, they will not be penalized for it and they will stay covered under their private car insurance policy.
In addition, at the expiry of the policy period, the customer subject to providing distance traveled, has the flexibility to claim the benefit irrespective of their decision to renew or not to renew their policy with us.
In case the customer renews the policy, the company will provide an additional 5 percent discount, for all claim-free policies.