The insurance segment is having a revolution as new and innovative insurance goods are being offered by insurance providers. The Insurance Regulatory and Development Authority asia has also established a project called Sandbox which allows insurance companies to check innovative products in the market before offering such products as full-fledged insurance coverage. This project has seen several new initiatives by insurance providers. One particular initiative, which is on offer in the car insurance segment, may be the driver-based pay-as-you-use car insurance by Edelweiss. Let’s understand what the policy is about –
What is driver-based car insurance policy policy?
Edelweiss launched SWITCH, the first driver-based own damage cover private vehicles. The insurance policy provides floater coverage for cars and bikes underneath the same plan. The premium depends upon the age and driving history of the user and is, therefore, dynamic. Here are some of the salient options that come with the insurance policy –
- The policy hides to 3 vehicles within single plan. These vehicles can be cars or bikes
- Coverage is offered only for the damages suffered through the vehicle. This is, therefore, a standalone own damage motor insurance plan
- The policy is an app-based plan. This means that it's controlled and operated through a mobile application which should be downloaded on your Smartphone
- This is a pay-as-you-use policy. You can turn the policy off or on based on your usage. If you work with the insured vehicle, you just have to turn on the policy from the application so if you're not while using insured vehicles, the coverage can be switched off.
- Since coverage is usage based, the premiums are lowered
- The vehicles to become insured can be changed throughout the policy tenure
- You can add multiple drivers towards the policy and the premium would be calculated taking into consideration the drivers added, their age and driving experience
How may be the policy different from a normal motor insurance plan?
While normal motor insurance plans only cover one type of vehicle, this plan covers multiple vehicles under the same policy. Moreover, the plan is extremely flexible within the context the vehicles to become covered could be added or removed and you have to pay the premium only for the times that you employ the automobile. Moreover, under the driver-based insurance policy, the premium is calculated in line with the age and driving experience of the motive force. This consideration isn't applicable in normal car insurance policy policies and this makes this policy unique.
What is covered underneath the plan?
The driver-based car insurance policy policy covers damages suffered through the insured vehicle in the next contingencies –
- Accidental damage suffered only when the vehicle is within use
- Loss or theft of the vehicle whether being used or not
- Damages suffered due to fire or explosion if the vehicle is being used or not
- Damage due to disasters like floods, hurricanes, cyclones, earthquakes, lightning, landslide, subsidence, etc. whether the vehicle is being used or not
- Damage because of terrorist activities whether the vehicle is being used or not
- Damages suffered due to riots, strike and any other malicious act
- Damages suffered once the vehicle was being transported through rail, road, air or sea
Coverage is allowed for that price of taking the vehicle towards the nearest preferred garage, setting it up repaired after which delivering it at the doorstep.
Roadside assistance coverage can also be allowed underneath the plan which provides coverage for mechanical and electrical breakdowns, immobilization because of an accident, flat tyre, dead battery, keys being locked within the vehicle, empty fuel, contamination of fuel, local travel if you're on the tour, continuation of journey following the breakdown, price of overnight accommodation, repatriation from the vehicle, medical coordination and urgent message relay.
What is not covered?
Coverage is not allowed within the following instances –
- Damage suffered by a vehicle which isn't added to coverage with the mobile application
- Damages suffered when driving without a valid license or under the influence of alcohol
- Damage suffered if the vehicle had been utilized by a driver who is not added in the policy document with the mobile application
- Depreciation and wear and tear of the insured vehicle because of usage
- Loss or theft from the vehicle when the keys are left within the vehicle itself or when the anti-theft mechanism of the vehicle wasn't working properly
How will the driver-based motor insurance plan work?
After you purchase the policy, you have to install the company’s mobile application in your Smartphone. The policy could be controlled while using application that you simply install. You would, then, have to register on the application and supply the details from the vehicles being insured and also the drivers who'd be using the automobile. According to these details and also the details of the vehicle, the premium would be computed. The premium would be split into two components – a lump sum payment amount which may be payable at the start and then the remaining premium would have to be paid as per your selected payment frequency.
Though the company collects the premium ahead of time, the actual premium depends in your usage. You would have to turn on the policy if you use the vehicle and then turn off the coverage when the vehicle wouldn't be being used. Thereafter, based on your usage, any unused premium would be carried toward the following year.
In case of claim, you are able to register your claim with the application itself as well as your claim could be settled through the company.
Benefits of driver-based car insurance policy plan
This unique motor insurance plan launched by Edelweiss has many benefits for vehicle owners. These benefits are listed below –
- The policy allows them to purchase a single cover up to three vehicles at one go. This really is suitable for anyone who has multiple vehicles. They don’t have to buy separate motor insurance insurance policy for each vehicle that they own
- Since the policy is usage-based, there's a huge savings in premiums especially for the individuals who use their vehicles sparingly
- The policy provides a comprehensive scope of coverage with the roadside assistance add-on inbuilt within the scope of coverage of the plan. Thus, you receive covered from the time the automobile is come to the garage up until the who's is delivered at your residence
- Making claims underneath the policy is easy as the mobile application allows you to make a claim through pictures and videos in tangible time
- It is simple to include or delete vehicle and drivers throughout the policy tenure
- This may be the first policy wherein the driver’s age and driving experience of considered in determining the premium amount. This, therefore, allows experienced and safe drivers to save on the premium cost.
The insurance segment is changing with items like this customers can usually benefit from reduced premiums on their insurance plans. Moreover, since the plan is dynamic, it may be changed to match the coverage requirements of individuals who have multiple vehicles. So, understand what this driver-based car insurance policy plan is about and then purchase the policy whether it suits your requirements.
