In line with some recent announcement by the Insurance Regulatory Development Authority of India (Irdai), ICICI Lombard General Insurance Company has launched a slew of tech-enabled motor insurance products. The three products it has launched are Motor Floater Insurance, Pay-As-You-Use and Pay-How-You-Use. The first one is a full policy, while the other two are add-ons that will be available with the main motor own-damage (OD) insurance policy.
Recently, Irdai allowed general insurance companies to introduce tech-enabled concepts within the motor OD cover. Irdai permitted general insurance companies to introduce the following tech-enabled concepts: Pay as You Drive; Pay How You Drive; floater policy for vehicles belonging to the same individual owner
Says Sanjeev Mantri, executive director, ICICI Lombard General Insurance, in the press statement: “Over the years, the regulator has played a substantial role in encouraging innovation in the industry and the announcements made recently for the motor insurance space specifically would mark another revolutionary step in that regard.” Here is all you need to know about these three products.
Motor Floater Insurance
If you own multiple vehicles, including two-wheelers and cars, now you can cover them all under a single insurance policy with a single premium, indicated the Irdai notification earlier. Such a product cuts the clutter of remembering multiple renewal dates and premiums.
The ICICI Motor Floater policy will enable individuals owning multiple vehicles to take a single policy—with a single renewal date and a comprehensive cover—for all. The product also allows customers to add or remove vehicles from the coverage.
The full benefits of the no-claim at each vehicle level will be preserved under the Motor Floater offering when one shifts from independent policies to this one, adds the company in a press release. No-claim bonus is offered to policyholders on renewals as per the applicable slab and up to 50 per cent.
“Maintaining multiple policies for motor vehicles owned by an individual has always been a tedious task. With this offering, customers can now maintain a single policy that will provide uniform coverage to all the vehicles owned by them,” says Mantri.
The add-ons will be effective for the same period as the OD cover under the relevant section of the policy, unless stated otherwise.
“Pay-How-You-Use and Pay-As-You-Use would go a long way in ensuring additional transparency and convenience for the end customer as these add-ons would precisely give them an idea of the coverage and incentivize both good driving and distance run with lower premiums,” says Mantri.
Pay-As-You-Use (PAYU): Under this plan, customers would be provided the flexibility to choose different “kilometers”, depending on their usage and the cover and premium will be decided accordingly.
The premium of the policy would be limited only to the extent the vehicle is used or estimated to be used by the customer. In case of exhaustion of the initially purchased “kilometers” customers can also top-up the kilometres during the policy period.
Coverage under this add-on would be valid only if the purchased kilometres (or additional grace kilometres provided to the customer) remains partially or fully used at the time of occurrence of loss.
Pay-How-You-Use (PHYU): Under this plan, the premium charged would change as per the driving behaviour. A customer with good driving behaviour can avail attractive discounts over the base premium of the policy. This policy would reward good driving behaviour and would also inculcate and encourage adoption of good driving habits by dis-incentivising bad driving behaviour.