Edelweiss General Insurance Introduces Switch 'Pay as you Drive' Add-on Motor Insurance suite

Edelweiss General Insurance (EGI) has launched the Switch 'Pay as you Drive' (PAYD) add-on for private vehicle owners. EGI launched Switch 2.0 earlier in July this year and is the first-of-its-kind offering that combines 'pay as you drive and pay how you drive.' Switch Pay-As-You-Drive add-on cover allows customers to get an attractive discount on their Own Damage (OD) premium depending upon their annual usage in terms of distance covered. EGI introduced Switch two years ago with the add-on feature, and this product can be added as a bolt-on to existing motor insurance products. The premium will be charged according to the kilometres travelled by car.

Commenting on the launch, Shanai Ghosh, Executive Director & CEO, Edelweiss General Insurance, said, "We always believed that usage-based insurance has huge potential in India. We have been working on this concept since 2020 and have launched 2 products on the same concept under IRDAI's sandbox. The regulator's recent guideline on Motor OD add-on bears testimony to our belief and we are extremely happy and proud to be the frontrunners in taking such innovative concepts to the customers. We have many more products in the works to strengthen this portfolio which will be launched soon."

The new add-on feature is within the IRDAI's guidelines permitting general insurance companies to introduce tech-enabled concepts for Motor Own Damage (OD) cover. EGI says its new insurance add-on has been enabled with telematics and app-based products. At present, with a regular motor policy, there was no difference in the premium paid by the customer who sparingly uses their vehicle as opposed to a high usage vehicle owner who clocks in more number kilometres every year.

The Pay as you Drive (PAYD) add-on gives customers three slab options of Own Damage cover - Up to 5,000 km; 5,000-7,500 km; and 7,500-10,000 km annually. Customers can opt for the slab that best suits their usage based on their annual usage pattern. Depending on the usage declared by the customer, EGI will provide additional savings in the premium. The company says customers will be able to save up to 25 per cent on their premium with this add-on. If the car's annual usage goes above the slab opted for, the customer can buy a top-up cover for the additional usage.

EGI says the Switch PAYD option is ideal for those who work in hybrid or work from home environments. This also helps vehicle owners who have company-provided transportation or use public transport regularly. This also helps those who clock fewer kilometres on their second vehicle.