Pay as You Drive Insurance

This add-on guarantees a discount on the premium paid by the policyholder. When you opt for this add-on, you confirm to the insurance company that the vehicle will be used for a fixed number of kilometres. The premium is decided on the basis of different slabs of distances provided by the company and the premium to be paid within each slab. 

The only difference between this policy and a basic policy is that the coverage under the ‘Own Damage’ component will be provided up to the number of kilometres agreed and paid for by the policyholder. Once the kilometres are decided, a discount is provided based on the number of kilometres the vehicle was used.

1. Declare Car Usage: Firstly, you declare to the insurance company the number of kilometres your car will be used for. Basically, it is a well-informed decision you must make to avail a discount on your premium. Additionally, you have to provide your car's odometer reading as the policy tenure begins. 
2. Proof: Before the policy expires, you provide the insurance company with your car's odometer reading. 
3. Claim Process: In case you have to register a claim under the policy, your vehicle must be within the declared distance in order to get coverage otherwise, your claim will not be considered.

If your car exceeds the declared usage limit, you will have the option to pay an additional premium to top up your kilometres, or you might have to pay an additional payment during a claim settlement process. This procedure is different for different insurers.

This add-on is highly beneficial for those who do not use their vehicle often and mostly prefer public transport. If you drive less than 10,000 km in a year or travel usually, this cover is the right choice!

Exclusions:

1. Any accidental damage to the vehicle if the vehicle has exceeded the fixed number of kilometres as mentioned in the policy.
2. Any other exclusions mentioned in the Insurance Policy will also apply to this add-on.