(PTI) Private sector Bajaj Allianz General Insurance on Thursday launched its add-on motor insurance cover called 'Pay As You Consume' (PAYC).
The company was the first to launch 'Pay As You Consume' under the Irdai's Sandbox Regulations.
Owing to the overwhelming response from customers, Bajaj Allianz General Insurance introduced this as a full-fledged cover under motor insurance products.
This usage-based motor insurance add-on cover is in alignment with Irdai's recent circular to allow PAYC under annual motor products, Bajaj Allianz General Insurance said in a statement.
Earlier this month, the Insurance Regulatory and Development Authority of India (Irdai) permitted general insurers to issue sophisticated add-ons for a motor insurance policy. These are telematics-based motor insurance plans for which the premium depends on the usage of the vehicle or driving behaviour.
Pay-as-you-consume add-on cover can be opted by the customer along with the basic OD (Own Damage) plan under Package Product, Bundled and Standalone OD cover, it said.
Customers can choose coverage based on their vehicle usage, further to which the premium will be calculated, ie kilometres driven annually. Customers can also avail of an additional benefit in premium for their safe driving, the insurer added.
Customers' driving behaviour will be analysed based on a telematics device installed in the vehicle, driving metrics recorded on their "BJAZ CARINGLY YOURS" mobile app (Company's app), or information provided by them through a device, etc, it said.
"Customers need not worry if opted kilometres during the policy period gets exhausted; they can add kilometres to their plan using the top-up plan. If a customer forgets to add kilometres to their top-up plan, the company has offered a unique concept of "GRACE KM" gratification, which is provided at the time of claim in case kilometres opted during the policy period gets exhausted," the company said.