• Claim up to 25% of own damage premium based upon the number of kilometers driven during the year
• At the time of purchase, no commitment pressure of maximum kilometers one intends to drive during the year
• During the year, policy cover continues with no extra charge for driving extra kilometers and no hassle of updating kilometers
• Benefit opted will be applied at the end of the policy year on submission of distance traveled, even if you decide not to renew the policy with us
• At the end of the policy period, the customer is eligible to take a refund at the applicable rate based on the distance covered and will get an additional 5% discount if the policy is renewed with HDFC ERGO with no claims history

Mumbai : HDFC ERGO General Insurance Company, a leading private sector general insurance company, has launched the ‘Pay As You Drive – Kilometre Benefit’ add-on cover for all its private car owners. Anyone driving less than 10,000 km in a year can benefit up to 25% of their own damage premium, subject to the odometer reading.

Speaking about the launch of the ‘Pay As You Drive – Kilometre Benefit’, Mr. Parthanil Ghosh, President – Retail Business, HDFC ERGO General Insurance Company said, “The disruption of technology in the insurance sector has acted as a stimulus for the insurance players who want to keep pace with the evolving needs of customers. The innovative solution we have launched today will not only do away with ‘one-size-fits-all car insurance premium’ but will also empower customers to customize their own damage policy with better control over the premium, keeping intact the simplicity of the traditional motor insurance policy. The company has meticulously designed the customer onboarding journey to avoid any commitment pressure of maximum kilometers and stress of disclosure. During the policy period, we want our customers to enjoy their drive rather than tracking their usage and get bothered with some time intruding top-up reminders. Even if customers drive beyond a certain limit, they will not be penalized for it and they will stay covered under their private car insurance policy. In addition, at the expiry of the policy period, the customer subject to providing distance traveled, has the flexibility to claim the benefit irrespective of their decision to renew or not to renew their policy with us. In case the customer renews the policy with us, the company will provide an additional 5% discount, for all claim-free policies.”

In the aftermath of the pandemic, many people do not drive frequently, however, they still have to pay the same premium as a person with high vehicle usage. The ‘Pay As You Drive – Kilometre Benefit’ feature will help those insured customers who prefer not to drive as much or own multiple cars, some of which are used less frequently than others.