Go Digit General Insurance, one of India’s fastest growing private general insurers, has launched ‘Pay as you Drive’ (PAYD) add-on feature for motor insurance Own Damage (OD) policies, becoming one of India’s first insurers to introduce the add-on for its customers.
The announcement comes in less than two weeks of the regulatory body Insurance Regulatory and Development Authority of India (IRDAI) permitting general insurance companies to introduce such tech-enabled concepts in motor OD policies.
Customers who drive less will now pay less with this addon, i.e., the discount will apply to anyone driving less than 10,000 kilometres per year on an average from the time it was bought by the current owner from the showroom. Digit will use odometer reading, telematics data and annual kilometre opted to give this discount, which can go up to as high as 25%.
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. 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. People with multiple vehicles and retired individuals with less requirement of their car, too, will benefit from this.
Speaking about the launch, Kunal Jha, Head – Motor Products and Actuarial, Digit Insurance, said, “Digit is proud to be the flag bearer of ‘Pay as You Drive’ in the country. 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.”
Digit has gained a market share of 4.5%* in the motor segment and clocked Rs 3,276 crore in gross written premiums from its motor business in FY22. It registered a growth of 34.6% YoY in the motor segment compared to industry growth of 3%. The company today offers cashless repairs in over 6,000 network garages all over India and had a claim settlement ratio of 98.2% for private cars in FY22.
*Digit’s market share basis FY22 Gross Written Premium derived from General Insurance Council report