Pay as you go: Irdai initiave aims to attract low-mileage car user

The idea behind such policies seems to be - lower the mileage, lower is the probability of an accident

Under the Insurance Regulatory and Development Authority of India’s sandbox initiative, general insurance companies have started launching usage-based motor insurance policies. Companies like 

Liberty General Insurance, Bharti Axa General Insurance, ICICI Lombard and some others have started giving these innovative features under their existing private car package policies. 

“Usage-based motor insurance is based on the ‘pay as you go’ model — different from the traditional motor insurance. Through this offering, we expect increased penetration of motor insurance by covering the customers who drive less and generally may not have a preference for own damage covers (OD),’’ says Sanjeev Srinivasan, managing director and