Bharti AXA General Insurance on Wednesday said it has tied-up with online policy aggregator PolicyBazaar.com to sell usage-based motor insurance covers. It said the scheme is for private car owners under the regulatory Sandbox project.
The usage-based motor insurance, popularly known as 'Pay As You Drive', allows customers to pay the premium depending on how many kilometers the car has travelled.
Under the policy, a customer pre-declares vehicle usage for a period of one year. Accordingly, the insurance premium gets calculated dynamically as per the pre-declared distance in kilometers.
The customer can choose from three slabs - 2,500 km, 5,000 km and 7,500 km – as per his/her usage need, Bharti AXA General Insurance said in a release.
"The emerging culture of shared mobility and work from home makes the usage-based motor insurance a very pertinent product for car owners, where they can pay the premium as per the usage of the car. 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 thecustomer-centric insurance a reality," said Sanjeev Srinivasan, Managing Director and CEO, Bharti AXA General Insurance.
He said the company believes the partnership for 'Pay As You Drive' will help it offer the need-driven motor insurance to the car owners more seamlessly and make the customer-centric insurance a reality.
"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," Sarbvir Singh, CEO, PolicyBazaar.com said.
The general insurer said that its proposal for a usage-based motor insurance product was shortlisted by the Insurance Regulatory and Development Authority of India for its regulatory sandbox project.
As car usage is highly varied across users, the product benefits those who drive less, the company added further.
Bharti AXA General Insurance is a joint venture between Bharti Enterprises, and global insurance giant AXA of France.