Zuno General Insurance Launches Usage Based Insurance Policy For Motor Vehicles In India

General Insurance company Zuno (Formerly known as Edelweiss) announced the launch of new add-on offering for their motor insurance products during a press event in Mumbai today. The new feature termed as Pay How You Drive (PHYD) allows user to assess their driving skills and generate a point-based score (Zuno Driving Quotient or ZDQ) for every drive undertaken by the user. This score helps Zuno determine the quality of driving behaviour by the user and entitle them for up to 30% discounts on insurance premium, which can be availed at the time of annual insurance renewal.

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The user driving behaviour will be analysed based on trip data collected though mobile telematics embedded in the Zuno app and its consistent usage is likely to fetch additional benefits including safer driving practices amongst the users. As per the company, drive-related data would be collected anonymously, masking user identity and the scores shall get calculated in the background using an automated digital process and assigned to the unique user id thereafter.

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A Usage Based Insurance (UBI) policy is still a new concept in the country. “This will give customers a greater control over their insurance pricing, personalizing it which will be a departure from current pricing approach.”, said Ms Shanai Ghosh, MD & CEO Zuno General Insurance during the launch event.