HDFC Ergo Launches Pay As You Drive Kilometre Benefit Add-On Cover For Private Car Owners

HDFC ERGO General Insurance Company has launched the 'Pay As You Drive - Kilometre Benefit' add-on cover for private car owners. As per the new add-on car insurance cover, owners driving less than 10,000 km in a year can benefit from up to 25 per cent of their Own Damage premium. The new scheme aims to reward customers who aren't driving more kilometres in a year but have to pay the entire premium over the car insurance. More recently, Edelweiss Insurance also announced its 'pay as you drive' policy add-on cover for private car owners. HDFC says that private car owners are clocking fewer kilometres on their cars in the post-pandemic era. The 'Pay As You Drive - Kilometre Benefit' feature will come in handy for customers who prefer to drive less or own multiple cars. 

Also Read: Edelweiss General Insurance Introduces Switch 'Pay as you Drive' Add-on Motor Insurance Suite

Speaking about the launch of the 'Pay As You Drive - Kilometre Benefit', Parthanil Ghosh, President - Retail Business, HDFC ERGO said, "The disruption of technology in the insurance sector has acted as a stimulus for the insurance players who want to keep pace with the evolving needs of customers. The innovative solution we have launched today will not only do away with 'one-size-fits-all car insurance premium' but will also empower customers to customise their own damage policy with better control over the premium, keeping intact the simplicity of the traditional motor insurance policy."  

HDFC will not penalise customers for driving beyond the 10,000 km limit under the add-on cover

During the policy period, we want our customers to enjoy their drive rather than tracking their usage and get bothered with some time intruding top-up reminders. Even if customers drive beyond a certain limit, they will not be penalised for it and they will stay covered under their private car insurance policy."

Under the new add-on car, customers do not need to commit to a maximum number of kilometres at the time of purchasing the policy. Instead, the policy cover will continue at no extra charge for extra kilometres. For customers who've opted for the benefit, they will be eligible to claim a 25 per cent cut at the end of the policy year upon submission of distance travelled. The benefit will be passed on even if customers do not want to renew the policy with HDFC. However, if they do, they will be eligible for an additional five per cent discount upon renewal with no claims history.