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New India Assurance Motor Insurance Plans

Learn about Pay As You Drive Policy By New India Assurance

New India Assurance Motor Insurance

Learn about Pay As You Drive Policy By New India Assurance

Pay As You Drive Policy by New India Assurance is a newly launched motor insurance policy in India. This policy uses a unique approach to premium calculation assisting policyholders to pay only for the kilometers driven by their vehicle during the policy tenure. Making it an ideal choice for persons who are looking out for a motor insurance policy at an affordable premium.

This article will talk about the following:

  • About the Policy
  • Benefits of Pay As You Drive Policy
  • Coverage offered under Pay As You Drive Policy
  • Exclusions under Pay As You Drive Policy
  • Add On Covers available under the policy
  • How to file claim under Pay As You Drive Policy?

About the Policy

Pay As You Drive is a recently launched innovative car insurance policy by New India Assurance. This is a comprehensive motor insurance policy designed to calculate the premium based on the usage of the vehicle.

The policyholder will be requested to declare the current odometer reading of their vehicle on buying the policy. The policyholder will also be requested to provide an estimation of kilometers they expect to drive during the policy period. Based on this information, policyholders can choose their preferred slab of options offered in the policy.

The policyholder’s can choose to opt for the following options provided under this policy: Up to 4,000 kilometers, Up to 6,000 kilometers, Up to 8,000 kilometers, Up to 10,000 kilometers.

In the case the policyholder has driven the vehicle more than the selected number of kilometers the policy will still continue to provide coverage. Although at the time of policy renewal, the policyholder will be entitled to a discount calculated based on the actual kilometers completed.

Coverage options under Pay As You Drive

Now let us talk about the coverage under this policy. This policy offers three types of coverage options to choose from:

  • Annual Cover: Under this cover, Third Party and Own Damage Insurance of the vehicle will be provided for one year.
  • Bundled Cover: Under this cover, Own Damage Insurance will be provided only during the first year of the policy. Whereas Third Party Insurance coverage will be provided for three years. This cover is only applicable to brand new vehicles.
  • Standalone Own Damage Cover: This cover provides Own Damage Insurance and does not offer any Third Party coverage.

Benefits of Pay As You Drive Policy

Below are a few benefits offered under the policy:

  • Usage-based Premium: This policy calculates the premium based on the actual usage or kilometers run by the vehicle. This means that policyholders who drive less can pay a lower premium and enjoy the benefits provided under the policy.
  • Encourages Safe Driving: The policy encourages policyholders to adopt safe and responsible driving habits by offering discounts on the Own Damage Insurance premium for good driving behaviour.
  • Flexibility in Slab Selection: Policyholders can choose the kilometer slab option based on their expected usage during the policy term. This feature enables the policyholder to choose the right coverage as per their needs.
  • Transparent Premium Calculation: As the premiums are based on actual usage of the vehicle, this provides policyholders with a better understanding of the premium they are paying and how it is being calculated.
  • Discount on Renewals: Policyholders will be eligible for PAYD discount based on the actual kilometers completed by their vehicle. In addition to that, the policyholder will also be eligible for the No Claim Bonus Benefit (NCB), as per policy terms.

Types of Plans under Pay As You Drive Policy

This policy comes in two kinds of variants: Basic Cover and Gold Cover.

1.) Basic Cover

The insurance company will provide financial assistance in case of:

  • Mechanical and electrical breakdown
  • Keys locked inside the car
  • Battery jump start
  • Flat tire
  • Fuel delivery

2.) Gold Cover

Under this cover, in addition to the basic cover, the company will also provide financial assistance in the case of wrong fueling, cab assistance.

Exclusions under Pay As You Drive Policy

Following are the general exclusions under the policy:

  • Any customization or additional fittings made to private cars, allowing policyholders to customize their vehicles, will not be covered.
  • All the exclusions listed under the Private Car Section of the Indian Motor Tariff 2002 will not be covered under this policy.
  • Any claim arising in extended geographical locations will not be covered, as per policy terms and conditions.

Add on Covers available under the policy

Policyholders can choose to opt for an add on cover with their base policy to enhance their coverage and avail of maximum protection. Some of the available add on covers are as follows:

  • Nil Depreciation Cover
  • Engine Protect Cover
  • Roadside Assistance Cover
  • Return to Invoice Cover
  • Personal Belongings Cover
  • No-Claim Bonus Protection Cover

How to file claim under Pay As You Drive Policy?

Follow these simple steps to file a claim under the policy:

  • Step 1: Inform the insurer immediately in case of an accident.
  • Step 2: Dully fill out and sign the claim form that will be available at the nearest branch of the insurer. Submit the claim form along with relevant documents like registration certificate, driving licence, original bills of repair, FIR report, etc, depending on the nature of the claim.
  • Step 3: The insurer will appoint a surveyor to inspect the condition of the vehicle. In case of major damage, a spot survey will be conducted at the accident site.
  • Step 4: Submit all the requested documents to the company.
  • Step 5: After thorough inspection of the claim, your claim will be approved.

Author Bio

This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

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Frequently Asked Questions

  • What are the kilometre slab options available under Pay As You Drive Policy?

    The following options are available to choose from:

    • Up to 4,000 kilometers
    • Up to 6,000 kilometers
    • Up to 8,000 kilometers
    • Up to 10,000 kilometers
  • Will the policy lapse if the vehicle has run more than the selected kilometer slab?

    No, the policy will still be active until the end of its tenure. However, the discount will be calculated on the basis of the actual kilometers completed by the vehicle.

  • What are the eligibility criteria under Pay As You Drive Policy?

    This policy is currently available for private vehicles.

  • Categories
    New India Assurance Motor Insurance

    New India Assurance Motor Insurance Plans (Which are the best?)

    New India Assurance Motor Insurance

    New India Assurance Motor Insurance Plans (Which are the Best?)

    New India Assurance Motor Insurance provides a host of motor insurance policies that provide different levels of coverage and different use cases. New India Assurance motor insurance provides coverage for private vehicles, commercial vehicles, fleets of vehicles, two-wheelers, and more.

    They have also recently come up with a brand new plan called New India Assurance PAYD policy.

    You can learn about all of the policies below

     

    • Private Car Insurance
    • Commercial Vehicle Insurance
    • PAYD Motor Insurance
    • Two Wheeler Insurance
    • Fleet Insurance
    • Standalone CPA cover

    Let us now talk about these motor insurance policies in detail.

    1.) Private Car Insurance

    New India Assurance offers private car insurance to anyone looking to buy a motor insurance policy in India. As you may be aware, it is compulsory for a driver to have at least a valid third-party motor insurance policy before he ventures on the road.

    Types of Private Car Insurance Offered

    • The company offers two types of private car insurance, they are liability only policy and package policy. A liability only policy will only extend coverage towards damage caused to a third-party, and owner-driver.
    • A package policy will cover third-party liability, owner-damage, as well as damage to the insured vehicle. It is a comprehensive motor insurance policy.

    General Inclusions and Exclusions

    A Liability only Policy

    • Inclusions: Personal accident cover for owner-driver, damages caused to third-party
    • Exclusions: Damage to own car, damage to passengers

    Package Policy

    • Inclusions: Personal accident cover for owner-driver, damages caused to third-party, damage to car, fire, theft, malicious act, terrorist acts, lightning, landslide, earthquake, riots, and more.
    • Exclusions: Consequential loss, regular wear and tear, civil war, driving without a license, driving under the influence of alcohol, and more.

    2.) Commercial Vehicle Insurance

    A commercial vehicle insurance plan is a motor insurance plan for commercial vehicles. New India Assurance provides two commercial motor insurance polices.

    Types of Commercial Car Insurance

    • New India Assurance Motor Insurance offers two types of commercial car insurance, they are liability only policy and package policy. Similar to their private motor insurance policy, a liability only commercial policy will only extend coverage towards damage caused to a third-party.
    • A package commercial policy will cover will cover third-party liability, owner-damage, as well as damage to the insured vehicle. It is a comprehensive motor insurance policy.

    General inclusions and exclusions include

    Liability only Commercial Policy

    • Inclusions: Damages caused to third-party
    • Exclusions: Damage to own car, damage to passengers

    Package Commercial Policy

    • Inclusions: Damages caused to third-party, owner-damage, damage caused to insured vehicle, fire, theft, vandalism, terror acts, lightning, landslide, earthquake, riots, and more.
    • Exclusions: Regular wear and tear, driving without a license, consequential loss, driving under the influence of alcohol, civil war and more.

    3.) PAYD Motor Insurance

    This is a newly released policy by United India Assurance, it is called Pay as Your Drive (PAYD.) Under this policy, policyholders are eligible to receive discounts based on the amount of kilometres the insured vehicle runs.

    The policyholder is eligible to receive discounts on renewal premiums if they drive their vehicle less than the specified kilometres mentioned under the policy bond. The PYAD plan comes in two variants, basic cover and gold cover.

    Types of PAYD Car Insurance Offered

    The PAYD car insurance is available in three types, they are comprehensive motor insurance cover, third-party motor insurance cover, and bundled cover.

    You can read about the inclusions and exclusions of the PAYD plan.

    4.) Two Wheeler Insurance

    The New India Assurance two wheeler insurance plan includes insurance policies for both bikes as well as scooters in India. 

    Types of Two Wheeler Insurance Offered: Policy types offered are liability only package and the package policy (comprehensive plan.)

    General Inclusions and Exclusions

    Liability only Package

    • Inclusions: Damage to third-party, owner-damage
    • Exclusions: Damage to passengers, damage to self-vehicle

    Package Policy

    • Inclusions: Damage to third-party, owner-damage, damage to insured vehicle, fire, floods, acts of terror, earthquake, theft, and more.
    • Exclusions: Consequential loss, regular wear and tear, war (including civil war), damages caused due to being under the influence of alcohol.

    5.) Fleet Insurance

    People who are in the business of transport and hospitality can avail of New India Assurance’s fleet insurance plan to insure their entire fleet of vehicles, ensuring stability of their transport business.

    6.) Standalone CPA cover

    New India Assurance also provides a separate stand alone compulsory accident cover (CPA.) Under Indian motor laws, it is mandatory for every driver to take CPA cover if they already do not have an accident insurance policy of at least 15,00,000/-.

    Author Bio

    This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

    Experience the power of Artificial Intelligence (A.I)

    Chat with our super-intelligent A.I model and ask it anything about insurance and related products.