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.
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.
Frequently Asked Questions
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
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.
This policy is currently available for private vehicles.