The driver-based, pay-as-you-use model allows the customer to pay premium only on the days they use the vehicle, and covers multiple drivers and multiple vehicles under a single policy.
21 May 2020 | 7610 Views | By Autocar Professional Bureau
Edelweiss General Insurance (EGI), a leading insurance company has launched an innovative, app-based Motor OD floater policy – Edelweiss SWITCH. The driver-based motor insurance policy, is launched under IRDAI’s (Insurance Regulatory and Development Authority) Regulatory Sandbox, which it says allows vehicle owners to switch their motor insurance ON and OFF, ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Edelweiss General Insurance (EGI), a leading insurance company has launched an innovative, app-based Motor OD floater policy – Edelweiss SWITCH. The driver-based motor insurance policy, is launched under IRDAI’s (Insurance Regulatory and Development Authority) Regulatory Sandbox, which it says allows vehicle owners to switch their motor insurance ON and OFF, based on usage and covers multiple vehicles under a single policy.
Edelweiss says what differentiates Switch from other Motor OD policies, is that it is driver-based insurance, where the insurance is calculated on the age and experience of the driver. The policy uses a pay-as-you-use model that allows the customer to pay the premium only on the days they use the vehicle, which it says offers significant cost savings and convenience. Customers can use the app to switch their policy cover 'ON' and 'OFF', depending on whether they are driving that day. Also, while the policy covers accidental damage when it is switched on, vehicles are covered 24x7 / 365 days against fire and theft, even if the policy is switched off at that time, since these incidents can happen even if the vehicle is not being driven.
Shanai Ghosh, ED and CEO, Edelweiss General Insurance said, “At Edelweiss General Insurance, our focus has always been to create simple and innovative products that are relevant and provide tangible value to our customers. Edelweiss Switch 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. This driver-based insurance will mean lower premiums for policyholders, as they will only pay as per usage. In addition to this, being able to cover multiple vehicles under one policy will add to the savings, especially for those customers who own multiple vehicles.”
IRDAI’s Sandbox platform is said to be a progressive move to encourage creation of innovative solutions for customers. Under this, nine general insurance players were given approval for products under the ‘Pay as you use’ model. Of these, only three players, including Edelweiss General Insurance, have been given an approval for motor floater products. The pay-as-you-use model is expected to change the erstwhile industry standard of determining premium for Motor OD (by age, make and model of the vehicle), to premiums based on usage and driving experience.
Also read: Edelweiss get IRDA nod for app-based insurance policy for own damage of motor vehicles