On Wednesday, the leading non-life insurer in the private sector, ICICI Lombard General Insurance, joined the motor segment’s expanding trend by introducing a product known as a “pay-as-you-drive” insurance.
ICICI Lombard Launches Motor Floater Policy
The premium for a motor policy with pay-as-you-drive is determined by the typical distance driven by the policyholder.
This kind of motor cover is already provided by a number of insurers, including HDFC Ergo, Bajaj Allianz General, Digit Insurance, and a few more. According to Sanjeev Mantri, an executive director at the insurer, ICICI Lombard has dubbed its latest offer the motor floater policy, which offers all the protections of a conventional motor policy (such as accident cover, third-party liability, and personal accident cover for the owner-driver) and now gives the advantage of adding all the vehicles owned by the proposer in one policy.
This new pay-as-you-drive insurance is now available, coupled with the choice to change the basic motor cover into a “asset cum usage” product, where the premium for the basic motor vehicle will be partially depending on usage. According to the policy, it provides two possibilities, he added.
The first is the “pay-as-you-go” plan, which gives customers the freedom to select among various “kilometer plans” based on usage. As a result, the premium will only be applied to the amount that the vehicle is utilized or anticipated to be used by the client.
A customer with good driving habits can take advantage of attractive discounts over the base premium of the policy under the second option, the “pay-how-you-use” plan, where the premium varies based on driving behaviour scores, he said.
Customers who choose the motor floater policy will pay a reduced premium for the several vehicles covered by the offering, saving them the time and bother of having to maintain separate policies for each vehicle they own.