One thing that the Coronavirus crisis has taught us is spending wisely. During this lockdown period when all we want to spend on is on essential goods and services only, we have avoided spending on anything that is not required in the short or medium time period. That said, there are things like motor insurance that are mandatory and shouldn't be neglected but at this time motorists don't really want to make any additional expense since majority of us haven't been using our vehicles for a long time. Well! Bajaj Allianz has come up with a new usage based policy where vehicles can be insured on usage basis for a shorter period of time instead of a full year period.
Abiding by the sandbox-based approval structure issued by the Insurance Regulatory and Development Authority of India (IRDAI), Bajaj Allianz is offering a choice of insurance policy coverage based on usage and number of kilometres covered. Speaking to Siddharth Vinayak Patankar, Editor-In-Chief, carandbike, Tapan Singhel, Managing Director and Chief Executive Officer (CEO), Bajaj Allianz General Insurance, said, "This is a first of its kind policy that we have launched today. Now customers who won't be using their car for a long time will be able opt for theft and fire insurance policy and can plan their insurance coverage according to the number of kilometres they will drive."
So the customers won't have to pay for the full year insurance policy. They can opt for the limited km policy and can top it up when it expires. For example, if a customer will be driving for approximately 100 kilometres then he will pay premium for only 100 kilometres and can later top it up within the 110 kilometres. However, if the owner will be frequently topping up the short term policy, it is advisable to opt for the full year policy.