Pay insurance premium on the basis of driving
The Insurance Regulatory and Development Authority of India (IRDA) has approved two new insurance products to Bajaj Allianz General Insurance. It has one product related to health insurance and another product related to motor insurance. The health insurance product is named ‘Co-pay’ and the motor insurance product is named ‘Pay as you consume’. Bajaj Allianz General Insurance is a private non-life insurance firm.
Giving information about the new automotive insurance product, Bajaj Allianz General Insurance MD and CEO Tapan Singhal said that under this new product, auto insurance holders only have to pay the premium as per the usage of the vehicle.
Singhal said that currently the share of the on-demand premium in a vehicle insurance policy in India is determined by the vehicle’s age, manufacturing and model. The premium under the ‘pay as you consume’ product will be determined based on the kilometer of the vehicle being driven. That is, you will have to pay auto insurance premium according to the number of vehicles you drive in a certain time. He said that more and more people will be encouraged to take on Damage Insurance.
Currently the plan will be on 6 months testing. As per IRDA orders, currently these products will be launched on 1 February on pilot basis. Its duration will be 6 months. Based on the response received from the pilot test, commercial launch of these products can be done. IRDA can extend the duration of the pilot test as and when required. According to information given by IRDA, in December, 125 proposals regarding insurance products were received out of which 37 have been approved.
