Hyderabad: 'One policy for all' is an old saying as general insurers are now competing to offer policies specifically for policyholders keeping in view their needs. They are working hard to provide policies to their customers without any hassles. Using modern technology to provide better products and services as policyholders always want something new.
At the same time, they don't want to spend much money while taking the policy. With this, insurance companies are also bringing out policies accordingly. Pay-as-you-consume (PAYC) can be said to be a revolutionary change in motor vehicle insurance in recent times. This approach is already widely used in many developed countries. The Insurance Regulatory and Development Authority of India (IRDAI) has recently approved these types of policies in our country.
Also read: Things to consider before buying two-wheeler insurance
Pay-as-you-consume is an add-on cover that comes under the comprehensive motor insurance policy. This gives the policyholder the freedom to choose coverage based on his vehicle usage. The premium paid depends on the distance travelled and the coverage is chosen. It can be selected from various slabs offered by the insurance company. These vary from insurer to insurer.
What should we do if we exceed the pre-determined usage limit? No need to worry. At this point, you can switch over to another additional column and continue the insurance cover by topping up the policy. Generally, the auto insurance premium is determined by the model and age of the vehicle. In PAYC, apart from these, the premium is determined by looking at how far you travel. It can help you tailor the policy to suit your individual needs.
With technology...
Telematics is a very important tool in the PAYC system. This device is installed in the insured's vehicle. It continuously monitors the distance travelled by the vehicle. The devices also monitor drivers' behaviour. Insurers also use special apps to collect and analyse speed, breaks and driving information. Concessions in premium are also offered to those with good driving behaviour.
Suitable for whom...
Pay-as-you-consume(PAYC) rider vehicles can be said to favour those who use them for long-distance journeys once in a while. Those who own more than one vehicle can avail of this facility. Those who use their own vehicle sparingly can also consider this type of policy. Consider how you will use the vehicle. Only then try to select this new rider, says Aditya Sharma, Chief Distribution Officer, Bajaj Allianz General Insurance.
