Edelweiss General Insurance has launched a new motor insurance policy – Edelweiss Switch – under the sandbox method. Under this policy, customers are allowed to turn on the coverage when they take their car / bike out and off when not in use.
This insurance scheme is likely to benefit vehicle owners who don’t use their cars every day. The policy was created due to the customer demand and growing interest for usage-based insurance policies.
Under this plan, up to three vehicles (2 and 4-wheelers) are covered under a single policy. The premium is calculated based on customer profile, including age, and the driving experience in years. While basic coverage like fire and theft would be applicable 24×7, the accident damage component is switched on and off. An app-based interface would allow one to switch the cover on a daily basis or on certain days of the week. Up to 3 drivers can be enrolled under this plan. The policy covers own damage and it is required to have a separate 3rd party policy for vehicles enrolled in this.
Further, a policy holder is required to make only a partial payment upfront and the rest is deducted every month according to the usage. The app wallet needs to be topped up with 20 days worth of premium at all times. This policy doesn’t take into account the vehicle age and make / manufacturer details for computing the premium. It is calculated only on the basis of driver age, experience and amount covered.
Sandbox products are allowed by the insurance regulator and approved after a period of 6 months based on the success rate of the same.
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