Much like the cable network universe, where ‘Pay per View’ has become a winning trend, Liberty General Insurance is all set to blaze a trail in the insurance sector with its innovative feature ‘Pay for the Distance’.
Innovative Sandboxing
In an initiative to encourage innovative products and approaches in the insurance sector, the Insurance Regulatory Development Authority of India (IRDAI) proposed a Regulatory Sandbox, which provides flexibility in dealing with regulatory requirements and, at the same time, focuses on policyholder protection.
In response to this opportunity to try out new formats, Liberty General Insurance Ltd. (LGI), which has always been at the forefront of innovating new products and features for its customers, crafted a policy feature ‘Pay for the Distance’, along with the host of new features that will certainly find a lot of takers, and make car insurance cost effective for those who do not use their vehicles as much.
This feature specifically addresses the predicament of vehicle owners who seldom use their vehicles, thus enabling them to pay based on how much they drive. This usage-based car insurance ensures that vehicle owners pay a lower premium if they do not use their vehicles frequently.
Facilitating Features
This novel ‘Pay for the Distance’ feature will be applicable only for the Own Damage section of the policy while it continues to provide the conventional Third Party Liability protection throughout the policy period.
Anticipating scenarios wherein policyholders may expect to overshoot the maximum kilometre limit, opted for under the ‘Pay for the Distance’ feature, LGI offers a top-up facility. This facility allows the client to reinstate the Own Damage coverage by increasing the number of kilometres by paying an additional premium. This precaution ensures that the vehicle does not remain uninsured.
LGI has also bundled a number of other new features along with the existing product, such as additional Voluntary Deductible slabs, in return for discounts on the Own Damage portion of the premium, and In-built Roadside Assistance cover. These features are available only to customers purchasing the policy directly from the company, through its online channel during February 1, 2020 to July 31, 2020.
‘No fault protection’ is yet another innovative feature through which the Company shall allow ‘No Claim Bonus’, as applicable to be retained by the insured in case of partial losses, at the time of renewal of the Policy, despite the occurrence of any loss or damage to the insured vehicle for the limited contingencies.
Customised Delight
With its innovative products and features, LGI facilitates its customers by making car insurance more cost effective and customer-centric. By launching ‘Pay for the Distance’ it has once again addressed the unique needs of lower mileage drivers who can now gain more transparency and control over their auto insurance.
Speaking on the development, Mr. Roopam Asthana, CEO & Whole Time Director, Liberty General Insurance Ltd. said, “LGI has always been at the forefront of innovating new products and features for its customers. ‘Pay for the Distance’, along with the host of new features will certainly find a lot of takers and make car insurance cost effective for those who do not use their vehicles as much. Further, this will give lower mileage drivers more transparency and control over their auto insurance.”
About Liberty General Insurance Ltd.
Liberty General Insurance (LGI) is a joint venture between Liberty Citystate holdings PTE Ltd—a group company of Liberty Mutual Insurance Group, a diversified global insurer with over 900 offices across the world, headquartered in the U.S. —Enam Securities, and Diamond Dealtrade Ltd. LGI commenced operations in 2013 with the aim of providing comprehensive retail, commercial and industrial insurance solutions. The company has an employee strength of 1100+ with presence across 100+ locations in 28 states. Its partner network consists of about 5100+ hospitals and more than 4300 auto service centres. The company offers health and personal accident insurance, car and two wheeler insurance, employee compensation insurance, commercial insurance, fire and engineering insurance, marine insurance and other miscellaneous insurance products in India.
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