Edelweiss General Insurance Introduces Switch “Pay as you Drive” Supplemental Car Insurance Suite

Edelweiss General Insurance (EGI) has launched the Switch ‘Pay as you Drive’ (PAYD) add-on for private vehicle owners. EGI launched Switch 2.0 earlier in July this year and is the first offering of its kind that combines “pay as you drive and pay how you drive”. The Switch Pay-As-You-Drive add-on coverage allows customers to earn an attractive discount on their Damage Damage (OD) premium based on their annual usage in terms of distance driven. EGI launched Switch two years ago with the add-on feature, and this product can be added as an add-on to existing car insurance products. The premium will be invoiced according to the kilometers traveled by car.

Commenting on the launch, Shanai Ghosh, Executive Director and CEO of Edelweiss General Insurance, said, “We have always believed that usage-based insurance has huge potential in India. We have been working on this concept since 2020 and have launched 2 products on the same concept under the sandbox of IRDAI The recent directive from the regulator on the Motor OD add-on testifies to our conviction and we are extremely happy and proud to be the precursors by proposing concepts so innovative to customers. We have many more products in the pipeline to strengthen this soon-to-be-launched portfolio.”

The new add-on functionality is in line with IRDAI guidelines allowing general insurance companies to introduce technology concepts for vehicle damage (OD) coverage. EGI says its new insurance add-on has been enabled with telematics and app-based products. Currently, with a regular car policy, there was no difference in the premium paid by the customer who uses their vehicle sparingly as opposed to a heavy duty vehicle owner who drives more miles each year.

The Pay as you Drive (PAYD) add-on offers customers three Personal Damage coverage slab options – up to 5,000 km; 5,000 to 7,500 km; and 7,500-10,000 km per year. Customers can choose the tile that best suits their use based on their annual consumption. Depending on the usage declared by the customer, EGI will realize additional savings on the premium. The company claims that customers will be able to save up to 25% on their premium with this add-on. If the annual car usage exceeds the chosen slab, the customer can purchase additional coverage for the additional usage.

According to EGI, the Switch PAYD option is ideal for those working in hybrid or home environments. It also helps vehicle owners who have company-provided transportation or who regularly use public transportation. It also helps those who drive fewer miles with their second vehicle.

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