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Home / Money / Personal Finance /  HDFC ERGO launches ‘Pay As You Drive – Kilometre Benefit’ add-on cover

HDFC ERGO launches ‘Pay As You Drive – Kilometre Benefit’ add-on cover

The ‘Pay As You Drive – Kilometre Benefit’ feature will help insured customers who prefer not to drive as much or own multiple cars, some of which are used less frequently than others. (Photo: Thinkstock)Premium
The ‘Pay As You Drive – Kilometre Benefit’ feature will help insured customers who prefer not to drive as much or own multiple cars, some of which are used less frequently than others. (Photo: Thinkstock)

Even if customers drive beyond a certain limit, they will not be penalized for it and they will stay covered under their private car insurance policy

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NEW DELHI: HDFC ERGO General Insurance Company has launched ‘Pay As You Drive – Kilometre Benefit’ add-on cover for its vehicle insurance customers. Subscribers driving less than 10,000 km a year can avail a benefit of up to 25% of own damage premium, subject to the odometer reading.

“The innovative solution we have launched today will not only do away with ‘one-size-fits-all car insurance premium’ but will also empower customers to customize their own damage policy with better control over the premium, keeping intact the simplicity of the traditional motor insurance policy...Even if customers drive beyond a certain limit, they will not be penalized for it and they will stay covered under their private car insurance policy. In addition, at the expiry of the policy period, the customer, subject to providing distance travelled, has the flexibility to claim the benefit irrespective of their decision to renew or not to renew their policy with us. In case the customer renews the policy with us, the company will provide an additional 5% discount, for all claim-free policies," said Parthanil Ghosh, president – Retail Business, HDFC ERGO General Insurance Company.

In the aftermath of the pandemic, many people do not drive frequently, however, they still have to pay the same premium as a person with high vehicle usage. The ‘Pay As You Drive – Kilometre Benefit’ feature will help insured customers who prefer not to drive as much or own multiple cars, some of which are used less frequently than others.

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