Policybazaar introduces monthly mode car insurance policy: Things to know

Customers can purchase short-term Own Damage (OD) insurance as a standalone OD policy or as short-term OD component of comprehensive policy

Policybazaar has launched a ‘monthly mode’ car insurance policy, which is set to provide car owners with a flexible and convenient alternative to the traditional annual car insurance plans.

 

The monthly mode car insurance policy offers customers the option to purchase short-term Own Damage (OD) insurance as either a standalone OD policy or as a short-term OD component of a comprehensive policy. The Third Party (TP) component of a comprehensive policy will remain active for the entire policy term and cannot be segmented into shorter durations. This ensures that TP coverage remains uninterrupted while offering flexibility for OD coverage.

 

 

Key features of monthly mode policy 

Coverage duration: The monthly mode policy will provide coverage only for the selected month. At the end of each term, a new policy with a unique policy number will be issued for the following month, ensuring continuous coverage.

No claim bonus (NCB): If a claim is made within a policy term, the NCB remains fixed for the first year. However, policyholders who default on payments will lose their accumulated NCB, leading to a higher premium for the next policy. After 12 months, the NCB will reset to zero.  ALSO READ: Drive less, pay less: Why 'Pay as You Drive' insurance may be right for you

 

Insured declared value (IDV): The IDV of the vehicle will remain constant for the first 12 policy renewals, except in cases of endorsements. Standard IDV depreciation will be applied from the 13th renewal onwards.

 

Underwriting guidelines: The policy underwriting guidelines will remain unchanged for policies bought under the monthly mode during the initial 12-month period.

 

E-Mandate for payments: Customers can conveniently set up auto-debit instructions via UPI or net banking e-mandates, ensuring hassle-free and timely premium payments.  ALSO READ: Timely car insurance renewal: Why it is crucial for every vehicle owner

 

“By offering monthly policy options, we are providing our customers to shell out premiums without facing any financial strain like in the lump sum annual scenario, while reinforcing our dedication to customer-first solutions. Additionally, this initiative marks a significant step forward in the evolution of the motor insurance industry and sets a new standard for other innovations to follow,” said Paras Pasricha, Business Head – Motor Insurance at Policybazaar.com.

 

Experts suggest that the launch of the monthly mode policy is expected to set a new precedent in the industry, aligning with evolving customer needs and digital-first payment trends.