New India Assurance launches ‘pay as you drive’ policy: Know details
1 min read . Updated: 31 Jan 2023, 11:33 AM IST
PremiumThe comprehensive motor insurance policy that charges premium based on the usage of vehicle. The policy has two components - third-party cover and own-damage cover.
New Delhi: New India Assurance (NIA) has launched a ‘Pay as You Drive’ (PAYD) policy, which offers a comprehensive motor insurance policy that charges premium based on the usage of vehicle. The policy has two components - third-party cover and own-damage cover.
Key features:
* The customer can save money on renewal premium by availing the applicable discount if the vehicle has not run beyond a specified number of kilometres. The discount will be applied on basic own damage premium.
* If the vehicle has been driven beyond the kilometre threshold limit, the coverage continues for the policy’s remaining duration. Customers can still avail a discount on the renewal, albeit at a lower applicable range.
* The policy can be enhanced by including other add-ons, such as Nil Depreciation, Engine Protection, Return to Invoice, Road Side Assistance, etc. These will be available on payment of additional premium.
Neerja Kapur, chairman and managing director, said, “Our PAYD policy fulfils a long-standing demand of customers for simple and flexible products that consider different usage patterns. Our product is one of the few in the market to help the customer manage his outflows towards vehicle maintenance. We are confident that this product will herald a new age in vehicle insurance and promote better compliance thereby reducing the risks associated with uninsured and underinsured vehicles plying on the roads."
Disclaimer: IRDAI urges prospective customers to study the terms and conditions carefully before applying.
