Digit Insurance launches usage-based motor cover add-on.

NEW DELHI: Go Digit General Insurance has launched a ‘Pay as you Drive’ add-on feature for motor insurance own damage (OD) policies. Here are five things to know:

1. Customers who drive less will now pay less with this add-on, i.e., the discount will apply to anyone driving less than 10,000 kilometres a year on an average from the time it was bought by the current owner.

2. Digit will use odometer reading, telematics data and annual kilometre opted to give this discount, which can go up to as high as 25%.

3. Digit’s customers will be able to complete the process within 5 minutes using tech-enabled video pre-inspection and finish the entire policy issuance process in less than 30 minutes.

4. 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. This trend is seen among many metro and tier-1 city dwellers, where they use public conveyance or on-demand cabs over their own vehicle for daily commute.

5. People with multiple vehicles and retired individuals with less requirement of their car, too, will benefit from this.

“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 2, 3 and 4 cities as well,” said Kunal Jha, Head of Motor Products and Actuarial, Digit Insurance.

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