New Motor Insurance Scheme Allows You to Pay Premiums Only When You Drive; How it Works

Business

Edelweiss General Insurance (EGI), has launched SWITCH, a one-of-its-kind on-demand, mobile telematics-based comprehensive motor insurance, for customers who want their vehicle insurance plans to be hassle-free. Launched under the IRDAI’s Sandbox scheme, SWITCH is completely digital that comes as a money-saving option for those who drive well. The motor insurance is subscription-based, which means that customers can pay the premium monthly depending on the usage.

SWITCH can be bought online at www.edelweissinsurance.com. Post-purchase, customers can download the SWITCH app from Google Play Store and the iOS App store to see their policy, Edelweiss General Insurance said in a press release on Monday. “The app detects motion and automatically activates insurance when the vehicle is driven, making it convenient and hassle-free for customers,” it said.

The unique nature of the SWITCH vehicle insurance allows customers to save money if they are driving well. “This usage-based model measures not only the quantity but also the quality of driving and calculates premium accordingly. This makes SWITCH unparalleled in the market as the only motor insurance product that generates a real-time driving score and dynamically rates the premium,” said Edelweiss in the press release.

Customers are given a driving score based on several driving parameters such as overspeeding, distracted driving, sudden braking, etc. Therefore, the better you drive, the better your score will be and the less you will have to pay. In addition, policyholders will no longer need to switch on the policy if they use their car as the app will do it for them automatically.

The entire product lifecycle is digital, right from purchase, to claim intimation, claim settlement, customer service, etc., thereby providing a seamless customer experience. The policy also allows customers to pay premiums in monthly installments after the initial premium is paid to activate the policy, making it convenient for them.

While the policy covers accidental damage while in motion and switched on, the vehicle will be covered 24×7 round the year against fire and theft as these incidents can happen even if the vehicle is not being driven, Edelweiss said in the statement. “Customers can also opt for, and avail of, multiple add-on covers such as depreciation protect, engine protect, NCB protect, roadside assistance and more, as are offered with a regular Edelweiss motor insurance policy,” it said.

Talking about the policy, Edelweiss General Insurance executive director and CEI Shanai Ghosh said, “SWITCH has been designed keeping in mind the changing driving preferences of today’s mobile-savvy customers. Our attempt is to incentivize good driving and make customers pay only as per usage. It is the only on-demand motor product in the country that places complete control in the hands of customers. Pay only for how much you drive and how well you drive. ‘Drive less, pay less; Drive better, pay less’ is what SWITCH is all about. With this, we are also hoping to encourage people to drive better and safer.”