The idea of paying a heavy premium for a car that is sparingly used during the year, can keep us from getting it insured on time. To address this and to make car insurance cost-effective, Liberty General Insurance Limited (LGI) introduces ‘Pay for the Distance’- a trailblazing innovation for car owners who seldom use their vehicles and yet bear a hefty insurance cost annually. The usage-based car insurance will certainly find a lot of takers, given how the burgeoning cost of insurance adds to the list of unnecessary expenses for many who drive less. LGI’s #PayForTheDistance feature lets you pay your insurance cost based on the distance you drive rather than for a specific time period. So, all you have to do is fill up a form and calculate your own insurance cost. Here’s a quick rundown of how it works and what is in store for the car owners.
LGI introduces car insurance feature ‘Pay for the Distance’ under IRDAI’s Regulatory Sandbox Initiative
The Insurance Regulatory and Development Authority of India (IRDAI) announced a regulatory sandbox initiative in 2019 to promote innovative ideas to foster growth in the insurance sector. Under this initiative, LGI has introduced a new and innovative feature ‘Pay for the Distance’ under its existing Private Car Package Policy.
Only pay for the kilometres you drive!
Unlike traditional car insurance, this usage-based car insurance ensures that vehicle owners pay a lower premium if they do not use their vehicles frequently, or in other words, it enables them to pay based on how much they drive. First to introduce distance-based car insurance in India, Liberty’s Pay for the Distance feature will be applicable only for the Own Damage (OD) section of this policy. The company will continue to provide third-party liability protection throughout the policy period.
- Easy Top-up
For policyholders who may exceed the maximum kilometer limit, opted for under the ‘Pay for the Distance’ feature, LGI offers a top-up facility that allows the client to reinstate the Own Damage coverage by increasing the number of kilometers by paying an additional premium. This ensures that your vehicle is never left uninsured.
- No-Fault Protection
The no-fault protection enables policy holders to avail the No Claim Bonus at the time of policy renewal even if the policyholders claim loss for damage caused to a parked insured vehicle by an external object or due to the act of God. Damage to only windshield glass to the parked insured vehicle and loss due to flood/ earthquake/ Act of god to the parked insured vehicle.
- Voluntary deductibles
The new bundle of features includes additional voluntary deductibles in return for discounts on the own damage portion of the premium.
- Roadside assistance cover
The struggle of your car breaking down in the middle of nowhere is real and you can never see it coming, no matter how powerful your backup LGI’s car insurance also packs a roadside assistance cover as an inbuilt feature that can be offered within a 50-km-radius from the place of the car’s breakdown.
Pinching pennies & saving the planet
If you’re keen on cutting down your car usage, this policy may also help you save a major cost that can be aligned elsewhere. Not that we’re asking you to opt for public transport , but doing this every once in a while may help you become an active participant in saving the planet from massive emissions. Steering towards an environmental cause while being rewarded for it, that’s quite a catch, isn’t it? So do your best while you can.
Follow these simple steps and get a safe, secure and cost-effective car insurance plan now.
- The first step to get your car insurance quote is by filling up this form. Enter your name, email address and the annual distance your car covers in km.
- Post the form-submission, you will be notified that a customer care representative will soon be contacting you. You may also go to the product page to learn more or call directly on +91-8291276248
- The support group will further walk you through the process and necessary links will be shared right after to help you calculate the insurance cost and pay accordingly.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines