August 13, 2022

Edelweiss General Insurance offers a usage-based auto policy

Edelweiss General Insurance (EGI) has introduced a mobile telematics-based car insurance product whose premium is based on the insured’s use of the car, a senior company official said.

The usage-based model measures both the quantity and quality of driving through a mobile app and calculates the premium accordingly, the official said. This is a subscription-based policy and customers can pay monthly premiums based on usage.

The product, SWITCH, is an all-digital, mobile telematics-based auto policy, said Shanai Ghosh, executive director and CEO of EGI, adding that the app detects movement and automatically activates insurance when the vehicle is driven. , making it convenient and hassle-free for customers.

SWITCH was designed with the changing driving preferences of today’s discerning customers in mind, Ghosh said.

“Our attempt is to encourage good driving and ensure that customers only pay for what they use. It’s the only on-demand automotive product in the country that puts total control in the hands of customers Only pay for how much you drive and how much you “Drive less, pay less; Drive better, pay less,” that’s SWITCH’s raison d’être,” he said.

The product allows customers to pay premiums in monthly installments after the initial premium is paid to activate the policy, which is convenient for them, the company said.

While the policy covers accidental damage in motion and in motion, the vehicle will be covered around the clock against fire and theft, he said.

Meanwhile, insurance regulator IRDAI on Wednesday allowed general insurers to issue sophisticated car insurance policy add-ons. These are telematics-based car insurance plans where the premium depends on vehicle usage or driving behavior.

Irdai has enabled general insurers to introduce technology concepts for engine damage (OD) coverage, including Pay as You Drive and Pay How You Drive.

Pay as You Drive is a comprehensive car plan where the premium would depend on vehicle usage while the Pay How You Drive premium would be tied to driving behavior.

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