Days after the Insurance Regulatory and Development Authority of India (IRDAI) enabled general insurance companies to issue certain tech-enabled concepts for Motor Own Damage (OD), Go Digit General Insurance backed by Indian cricketer Virat Kohli launched launched ‘Pay as you Drive’ (PAYD) add-on feature for motor insurance Own Damage (OD) policies. The company has become one of India’s first insurers to introduce the add-on for its customers.
The announcement came on July 18, which is less than two weeks of regulatory body IRDAI permitting general insurance companies to introduce such tech-enabled concepts in motor OD policies.
Customers who drive less will now pay less with this addon, Go Digit said in a press release on July 18. This means that the discount will apply to anyone driving less than 10,000 kilometres per year on an average from the time it was bought by the current owner from the showroom.
How Will Digit pay As You Drive Insurance Work?
Digit will use odometer reading, telematics data and annual kilometre opted to give this discount, which can go up to as high as 25 per cent. Digit’s customers will be able to complete the process within five minutes using tech-enabled video pre-inspection and finish the entire policy issuance process in less than 30 minutes, the company said.
Who Will Benefit?
This is especially beneficial to people who do not drive their car regularly but still pay the same premium as a driver with heavy usage, the insurance company said. This trend is seen among many metro and Tier-I city dwellers, where they use public conveyance or on-demand cabs over their own vehicle for daily commute. People with multiple vehicles and retired individuals with less requirement of their car, too, will benefit from this.
Speaking about the launch, Kunal Jha, head of motor products and actuarial at Digit Insurance, said, “Digit is proud to be the flag bearer of ‘Pay as You Drive’ in the country. The company’s customer-first approach and tech agility has enabled us to launch the feature in record time. This usage-based add-on is launched initially with a 10,000 km-cap so that maximum people can avail insurance in a cost-effective manner. This will also be available through our partner distribution network, which contributes to majority of our motor business throughout Tier II, III and IV cities as well.”
Digit has gained a market share of 4.5 per cent in the motor segment and clocked Rs 3,276 crore in gross written premiums from its motor business in FY22. It registered a growth of 34.6 per cent YoY in the motor segment compared to industry growth of 3%. The company today offers cashless repairs in over 6,000 network garages all over India and had a claim settlement ratio of 98.2 per cent for private cars in FY22, Digit said in its press release.
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