Comprehensive motor insurance policy that charges premium based on the usage of the vehicle. The policy has two components - third-party cover and own-damage cover.
New Delhi: New India Assurance (NIA) has launched 'Pay As You Drive' (PAYD) policy, which offers a comprehensive motor insurance policy that charges premium based on the usage of the vehicle. The policy has two components - third-party cover and own-damage cover.
key features:
* The customer can save money on the renewal premium by availing applicable discounts if the vehicle has not been driven for more than a specified kilometer. The discount will be applicable on the basic own damage premium.
* If the vehicle has been driven in excess of the kilometer limit, the coverage continues for the remaining term of the policy. Customers can still avail the discount on renewal, though at a lower applicable limit.
* The policy can be extended by including other add-ons like Nil Depreciation, Engine Protection, Return to Invoice, Road Side Assistance etc. These will be available on payment of additional premium.
Neerja Kapoor, Chairperson and Managing Director said, “Our PAYD policy meets the long-standing demand of customers for simple and flexible products that consider different usage patterns. Our product is one of the few available in the market which helps the customer to manage their outlay for vehicle maintenance. We are confident that this product will usher in a new era in vehicle insurance and promote better compliance thereby reducing the risks associated with uninsured and underinsured vehicles plying on the roads."
