New Add-Ons In Motor Insurance

To keep pace with new developments in the insurance market, the Insurance Regulatory and Development Authority of India (Irdai) has permitted general insurers to introduce the Pay as You Drive, Pay How You Drive and floater policy for vehicles belonging to the same individual owner for two-wheelers and private cars as add-ons in a motor insurance policy. These tech-enabled concepts for the Motor Own Damage (OD) cover can be sold on an annual basis.

These three newly introduced add-ons will be offered with the base Motor Own Damage (OD) policy as optional riders and can be chosen by the policyholder based on the coverage they look for. Through these, customers will be able to better manage the insurance policies of their multiple vehicles and have affordable premiums as they will pay according to their vehicles’ usage and how they drive it. Riders like ‘Pay how you drive’ lead to lower premiums charged if a customer drives mindfully thus promoting good driving patterns.”