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Pay As You Drive Insurance and How You Drive Insurance
Visual Stories by PayBima
High motor Insurance premium rates have been a cause of worry for many. Hence IRDAI introduced vehicle insurance based on usage where premium is levied as per kilometers traveled. Let us find out more.
‘Pay as you drive’ and ‘How you drive’ are two important vehicle insurance policies introduced by IRDAI recently, looking at the high motor insurance rates. Let us understand these two insurances further in this post for better understanding.
‘Pay As You Drive’ and ‘How You Drive’ Insurances
IRDAI has recently announced the launch of two new policies to cater to the needs of car owners who have limited car usage and who are covered with third-party insurance only. So, such people can now avail of the policies of ‘Pay as you drive’ and ‘How you drive’ to ensure the safety of their own cars against damages.
‘Pay As You Drive’ (PAYD) Insurance – Features
As mentioned above, these policies are solely meant for car owners who do not drive their car on a regular basis. Thus, they could pay for whatever usage of car they have and thereby save on their premium payment.
Below are some features for the better understanding of the policy:
| 1. The policy allow discount on premium as per the car usage and kilometers covered (which must be under 15000 km per year) | 2. To avail the benefit of the plan, policyholder should upload a video of their car to declare the odometer reading before the expiry of his/her current motor insurance policy |
| 3. Suits people who use their vehicles rarely or who are occasional users of their personal cars | 4. Policyholders can save up to 10% on own damage premiums |
How Does ‘Pay As You Drive’ Insurance Work?
The concept of Pay As You Drive (PAYD) is new as it was launched recently. It helps policyholders to modify insurance plans as per requirement and hence lower the premium amount. A PAYD vehicle insurance plan comes with the obligatory third-party liability insurance for the policy tenure. It also offers Own Damage protection to the insured car, which is calculated as per distance covered by the car.
Hence, under this policy the insured pays the premium only for the kilometers that they travel. Here’s how the PAYD insurance works in five simple steps:
| 1. Declare Your Car Usage |
| 2. Declare the Odometer Reading |
| 3. Policyholder to declare kilometers (No Need of Telematics) |
| 4. Avail Discount on Premium |
| 5. Easy Claim Settlement |
Lets understand them in detail:
- Declare Your Car Usage – The premium of this new car policy is decided on the usage of the vehicle. So, the policyholder will pay as per the kilometers run by their car. At present, 15000 km is the number that is fixed for per year usage for each car insured under Pay As You Drive policy. So, if the policyholder drives his/her car for less than 15000 kms per year, he/she becomes eligible for the plan.
- Declare the Odometer Reading – Odometer reading is another important aspect of the PAYD plan. Here, the policyholder is expected to declare the odometer reading of their vehicle by uploading a video before the expiry of their current policy to initiate the Pay As You Drive policy.
- Policyholder declares kilometers (No Need of Telematics) – The telematics device is used to keep a track of the distance that a vehicle covers. It is also used to track many other analytical aspects of the insured car. However, at the moment no such device is required to be installed by the policyholder to track distance. Rather, the policyholder can declare the kilometers/distance covered by his/her car to avail the benefit of the plan.
- Avail Discount on Premium – Under the Pay as you Drive car insurance, the policyholder can avail a discount of over 10% on the premium paid for the damages incurred on own car.
- Easy Claim Settlement – If the claim remains within the prescribed limit of 15000 kilometers per year, the settlement of claims remains normal like in other plans. However, if the policyholder’s car usage exceeds the specified limit (of 15000 km), he/she might have to pay the claim amount as co-pay.
>>Car Policy Premium Based on Your Driving Behavior – Know in Detail
Whom Does ‘Pay As You Drive’ Insurance Cater To?
Pay As You Drive or PAYD is a new insurance type for people in India where they can pay the premium depending on the kilometers driven. Hence, this policy sounds perfect for people who are not regular in driving their car.
The points below will clear your understanding about who all can benefit from this policy:
- Seasonal drivers who rarely drive their personal car
- Those having multiple cars (One vehicle is not used daily)
- People who like to use their personal car only during a particular season like monsoon, winters etc.
- People who do not drive that frequently
What is ‘How You Drive’ Insurance?
Like ‘Pay As You Drive’, ‘Pay How You Drive’ or PHYD is another plan in which a premium amount is charged as per how the vehicle is driven. Driving is an activity that should be done with extreme care to avoid accidents. Hence, it is important for everyone to inculcate good driving habits.
Safe Driving is important to avoid financial as well as legal hassles along with ensuring the safety of people on the road. Further, as per the new PHYD insurance plan, driving habit can also decide the premium to be paid on your vehicle insurance.
Since good and responsible drivers are less likely to get involved in accidents, hence they are levied with less premium on their car insurance. This is an entirely new model as compared to the traditional motor insurance models available.
This new concept introduced by IRDAI is likely to revolutionize the insurance sector. Here, the insurer can charge the insured as per his/her habit of driving. Hence, this policy makes the car owners conscious about how they drive so that they can pay a low premium. The plan was launched with the aim to encourage safety while driving.
Know More: Passenger Cover in Four-Wheeler Insurance: Things To Know
Things to Do Under ‘Pay How You Drive’ Insurance to Lower Premiums
| 1. Follow Traffic Signals Sincerely | 2. Never Involve in Drink and Drive Activities |
| 3. Always Follow Speed Limit While Driving | 4. Never Miss to Wear the Seat Belt |
| 5. Maintain Defensive Technique of Driving | 6. Remember you are Under GPS scanner |
Pay How You Drive or PHYD insurance is tracked with the help of a GPS tracker that is installed in the car of the policyholder. Here, the premium is determined on the basis of backend algorithms for each insured.
Read More: How To Claim Third Party Car Insurance In India?
To Sum Up
The introduction of PAYD and PHYD insurances are likely to transform the motor insurance sector to a great extent. It is important for car owners to have a better understanding of their pattern and behaviour of driving. Further, it is important to understand your particular needs of car insurance before selecting a policy. Thus, explore and compare plans before making the final decision.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
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FAQs on #'Pay As You Drive' and 'How You Drive'
What is the 'Pay As you drive' insurance?
'Pay As You Drive' insurance is like a comprehensive car insurance plan that allows policyholders to save up on their own damage premiums. Thus, it helps a policyholder to lower his/her premium as per the usage of the car.
How does Pay As You Drive work?
A Pay As You Drive insurance policy comes with the obligatory third-party policy for the policy tenure along with offering own damage protection, which is calculated as per distance covered. Thus, this policy offers the mandatory Third-party Liability Car Insurance Policy for the policy period and the Comprehensive Coverage based on the distance travelled by the vehicle. Hence, you only pay the premium for the distance travelled.
What does Pay As You Drive insurance cover?
Under this plan, the insurer charges a fixed monthly or annual fee and covers your vehicle against various damages like accidents, fire, theft etc. However, if you drive extra than the prescribed kilometres under the plan (more than 1500 km per year), you would be charged for the extra distance travelled by paying the claim amount as co-pay.
Is Pay As You Drive insurance available in India?
Yes, the IRDAI has launched usage-based Pay As You Drive insurance in India recently. Under this policy, the insurance premium is charged depending on the kilometres travelled by a car.
The post Pay As You Drive Insurance and How You Drive Insurance appeared first on Paybima Blogs.
Cashless Mediclaim Policy – All You Need to Know
Visual Stories by PayBima
Know everything about the most beneficial feature of health insurance and how it can help you in medical emergencies.
Emergencies can come anytime unannounced. The same holds true for medical emergencies as well. Such times can be quite demanding, both in terms of time as well as money. There may arise an immediate need for money to be spent on hospitalization or urgent treatment for the patient. Such situations can create quite a panic if not prepared for in advance. This is why health insurance presents an extremely beneficial feature for the convenience of policyholders. It is known as cashless mediclaim.
Here we’ll talk all about a cashless mediclaim policy, how it works, what it covers and excludes, and also share the top insurance companies offering the cashless mediclaim feature. So let’s begin.
What is Cashless Mediclaim?
As the name suggests, a cashless health insurance allows the policyholder to avail the benefit of hospitalization without paying immediate cash during a medical emergency. In other words, when an urgent need arises for a treatment at hospital, the policyholder can get hospitalized without having to pay for it immediately, with the benefit of a cashless mediclaim policy.
3 Types of Cashless Claim Policies in India
We learned what is cashless insurance in the section above. Now let us quickly understand the different types of cashless mediclaim policies that exist in India:
- Cashless Individual Health Insurance: These plans are specifically designed for individuals, offering them the cashless mediclaim benefit.
- Cashless Family Health Insurance: This can be purchased for the entire family, including spouse, kids, and parents (if applicable). All the members of the family can be covered by cashless health insurance under the same plan avoiding multiple payments of premium for different policies.
- Cashless Health Insurance for Senior Citizens: This is exclusively meant for the elderly aged 60 years and above. The plan covers besides cashless hospitalization expenses incurred on the ambulance as well as treatment of pre-existing diseases.
Top 7 Key Features of Cashless Treatment
Now that we know what cashless treatment is, let us look at some of its key features:
- Cashless treatment provides coverage for expenditure incurred on hospitalization of the patient for a period greater than 24 hours
- Coverage for single health checkup and diagnostic test is provided
- Cashless treatment means that the patient does not need to pay a single penny at the time of hospitalization
- Coverage for ambulance cost, organ transplant, and domiciliary treatment is also offered under cashless mediclaim policy
- Both pre- and post-hospitalization expenses are covered
- Daily hospital cash benefit provided
- No Claim Bonus (NCB) is granted to the policyholder for zero claims raised in a financial year
What is Included in Cashless Insurance?
A cashless mediclaim plan can be used to seek coverage for both:
- Planned hospital stay for treatment of a specific health condition; and
- Emergency hospitalization required during medical emergency
A cashless claim process can be followed in both of the above cases to file a claim for cost coverage on the expenses incurred. The insurance company has a collaboration with a wide network of hospitals and the policyholder can choose to get treatment done at any of those hospitals on the cashless treatment facility. In case of emergency hospitalization too, the patient can be taken to any of the network hospitals and get admitted without having to pay anything from their pocket.
>>Online Mediclaim Policy Premium Calculator
5 Exclusions of Cashless Mediclaim
There are certain features that are not included in cashless treatment health insurance. Let us look at some of them:
- Fee for the attendant
- Admission fees or registration charges at the hospital during time of admission
- Expenses incurred on purchase of items such as oxygen masks, diapers, syringes, and the like
- Purchase of toiletries for personal use
- Service charges in the final bill
What to Consider Before Buying Cashless Mediclaim?
So a cashless mediclaim plan does sound appealing but there are some pointers to keep note of before investing in one. Here are some of them:
- Make sure that your cashless treatment insurance covers both hospitalization expenses as well as day care treatment coverage under the plan. This is because not all treatments require the patient to be hospitalized and most of them can be taken care of with a brief stay at the hospital (for less than 24 hours).
- Make sure that your cashless health insurance plan comes with a lifetime renewability feature. This would be particularly helpful to you if there are dependent parents in your family.
- It would be ideal if cashless hospitalization insurance comes with added maternity coverage benefits too to help your spouse cover costs during pregnancy and delivery.
- Most cashless health insurance plans come with a single free health checkup and diagnostic test facility. Try and opt for such a plan.
- Always check for the list of network hospitals provided in your mediclaim policy where cashless treatment can be availed during emergency.
- The Claim Settlement Ratio (CSR) of the insurance company must always be considered before purchasing any mediclaim plan. The higher the CSR of the company, the better it is to invest in.
Know More: What is Disability Insurance Cover in Health Insurance Policy
Top Cashless Mediclaim Plans in India
With so many benefits to enjoy under cashless insurance, it’s only wise to invest in one. If you’re keen on doing so, here are at least 5 insurance companies that offer some of the best cashless treatment health insurance plans in India:
| Name of the Plan | Eligible Age | Sum Insured | Coverage Provided | Waiting Period |
| Care Health Plan | 5-18 years | Rs. 3 lakh – Rs. 6 crore | Pre and Post Hospitalization Expenses | Pre-existing diseases covered after 4 years of the date of commencement of the policy |
| Bajaj Allianz Health Insurance Family Floater | 18-65 years | Rs. 1.5-50 lakh | Pre and Post Hospitalization Expenses | Pre-existing diseases covered after 2 years |
| Apollo Munich Optima Restore Health Insurance | 5-65 years | Minimum Rs. 3 lakh | Pre and Post Hospitalization Expenses | Pre-existing diseases covered after 3 years |
| Niva Bupa Health Insurance | 18-65 years | Rs. 5 lakh | Pre and Post Hospitalization Expenses | Pre-existing diseases covered after 2 years |
| ICICI Lombard Health Care Plus | 5-65 years | Up to Rs. 20 lakh | Pre and Post Hospitalization Expenses | Pre-existing diseases covered after 4 years |
Read More: Does Hair Loss Treatment Cover Under Health Insurance?
Summing Up
Cashless mediclaim policy has a number of benefits for the policyholder, the most important being cashless hospitalization during medical emergencies. For more information on cashless mediclaim or various other health insurance plans in India, visit PayBima.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
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FAQs on Cashless Mediclaim Policy
What is the procedure for cashless mediclaim?
To file a claim with the insurer under the cashless mediclaim plan, follow the steps as below:
Within 24 hours of hospital admission, call your insurance company or third-party administrator (TPA).
The insurer will issue you a claim intimation/reference number for your filed claim.
Make sure that the hospital authorities fill out and submit the cashless claim form to the insurance company.
Is cashless claim good?
A cashless claim is generally better than a reimbursement claim because it is far more convenient than the latter. The patient can be immediately hospitalized without having to pay a penny from their pocket.
What happens if cashless claim is rejected?
In case your claim gets rejected by the insurer, introspect and determine any errors that may be present in your claim form submitted to the insurance company. If determined, fix those errors and resubmit the form. You can also take the help of a Third-Party Administrator representative who would help you with the submission of accurate form and relevant documents.
The post Cashless Mediclaim Policy – All You Need to Know appeared first on Paybima Blogs.