HDFC ERGO Launches Innovative Motor Insurance Policy Under The ‘Sandbox’ Program Of IRDAI

 -      ‘Pay as you drive’ offers distance-based insurance under the own damage section to reduce the upfront insurance costs

-      The offering has been extended as a pilot with Maruti Suzuki India Limited to its customers buying a new car as a value proposition to save on insurance premium

DFC ERGO General Insurance Company, a leading private sector general insurance company, announced the launch of its ‘Pay as you Drive’ program; an insurance solution that offers distance-based insurance to reduce upfront costs of premium. This policy will be best suited for those customers who prefer to drive less or have multiple cars with some of those driven less than the others. This program, under the regulatory sandbox, is applicable for 10,000 policies or ? 50 lacs of premium whichever happens earlier and is being offered exclusively through Maruti Suzuki Insurance Broking Private Limited.

A lot of customers do not use their vehicles frequently and end up paying the same insurance premiums as daily vehicle users. The “Pay as you drive” program brings the opportunity to pay a premium based on the actual usage of the car. The driving distance will be measured with the assistance of a telematics device in the vehicle, enabling customers to save between 10-20% of their ‘Own Damage’ premium based on the distance slabs chosen by the customer.

Speaking about the launch of the ‘Pay as You Drive’ program, Mr Parthanil Ghosh, President – Motor Business, HDFC ERGO General Insurance Company said, “We have always been committed to offering products & services that address the requirement of the customers. With the ‘Pay as you drive’ program, we are addressing a latent need in the market, wherein customers who drive their cars occasionally could pay a lower premium commensurate to the risk exposure. This technology-enabled solution is expected to set a new precedence in the motor insurance segment by offering customers value and saving based on the usage of the car.”

The program will be available for owners of new Maruti Suzuki cars in select cities up to May 14, 2022.

About HDFC ERGO:

HDFC ERGO General Insurance Company is a joint venture between HDFC Ltd. and ERGO International AG; the primary insurance entity of the Munich RE Group of Germany. HDFC ERGO is one of India’s largest non-life insurance companies in the private sector. A digital-first company, transforming into an AI-first company, HDFC ERGO is a leader in implementing technology to offer consumers the best-in-class service experience. The company has created a stream of innovative & new products as well as services using technologies like Artificial Intelligence (AI), Machine Learning (ML), Natural Processing Language (NLP), Robotics, and IBM Watson. HDFC ERGO offers a range of general insurance products and has a completely digital sales process with ~93% of retail policies issued digitally. The self-help tech platform developed by HDFC ERGO has empowered the customers to avail 58% of the services virtually in a self-help mode on a 24x7 basis with ~40% of the customer requesting services digitally.

The Company offers a complete range of General Insurance products including Health, Motor, Two-wheeler, Home, Travel, Cyber, Agriculture, Credit and Personal Accident in the retail space along with Property, Marine, Engineering, Marine Cargo, Group Health, and Liability Insurance in the corporate space. Be it unique insurance products, integrated customer service models, top-in-class claim processes, or a host of technologically innovative solutions, HDFC ERGO has been able to delight its customers at every touch-point and milestone to ensure consumers are serviced in real-time.