In an industry first, Edelweiss General Insurance has launched a motor OD (own damage) floater policy that allows the inured to pay as he/she uses the vehicle.
Called Edelweiss Switch, this driver-based motor insurance policy, launched under regulatory sandbox, allows the vehicle owner to switch the insurance 'on' and 'off' based on usage and covers multiple vehicles under a single policy, the company said in a statement on Thursday.
This driver-based policy means lower premium for policyholders, as they will only pay as per usage. Also, this policy covers multiple vehicles under one policy, adding to the savings, especially for those customers who own multiple vehicles, the company said.
"What differentiates this policy from other motor OD policies is that it is driver-based and the cover is calculated on the age and experience of the driver. It uses a pay-as-you-use model that allows the customer to pay the premium only on the days they use the vehicle, offering significant cost savings and convenience," Shanai Ghosh, the chief executive of Edelweiss General Insurance said.
This app-based floater policy is driver-based and pay-as-you-use that allows the customer to pay premium only on the days they use the vehicle covers multiple drivers and multiple vehicles under a single policy.
"Customers can use the app to switch their policy cover 'on' and 'off', depending on whether they are driving that day. Also, while policy covers accidental damage when it is switched on, the vehicle is covered 24/7/365 against fire and theft, even if the policy is switched off at that time," Ghosh said.
This policy has been developed with the specific needs of today's customer in mind, where you may not use your vehicle regularly or may choose to alternate between your car and two-wheeler.
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Irdai's sandbox platform encourages innovative solutions and under this, nine insurers were given approval for products under the "pay as you use" model.
Of these, only three, including Edelweiss General, have been given an approval for motor floater products.
The pay as you use model is expected to change the motor OD model which used to be determined by the age, make and model of the vehicle, to premiums-based on usage and driving experience, Ghosh said.
Edelweiss General is the first cloud native insurer, which started its operations in February 2018, with a digital operating platform and a clear intent and focus to transform customer experience in its category of play. It is also the first insurer to implement the entire SAP insurance suite in the country, creating an integrated, robust, scalable and microservices-based, API driven architecture.