Kotak Mahindra General Insurance Company has launched an add-on feature called ‘Meter’ to allow policyholders pause the insurance cover when the vehicle is idle.
The ‘Meter’ add-on was initially introduced through IRDAI’s regulatory sandbox where it saw tremendous success, said MD and CEO Suresh Agarwal, adding that the insurer has so far sold 3,300 policies garnering premium of around ₹50 lakh.
“That’s been a great success for us. In fact, we were the first to meet the sandbox criteria because the response was so good,” he told businessline.
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Kotak Meter mobile application allows policyholders switch their car insurance coverage ‘on’ or ‘off’ based on usage. For every 24 straight hours that the cover has been paused, policyholders will get one reward day in their policy cover.
Accumulated reward days can be redeemed either by getting a discount at the time of renewal or a cashback up to 40 per cent of own damage (OD) premium at the end of the policy term, depending on the number of reward days accrued.
Agarwal said that they are focussing on getting feedback from customers about the feature.
The cost of the add-on feature will be ₹250, Agarwal said at the launch of the add-on, adding that the policy will cover theft, fraud and natural calamities while the cover is paused, but not accidental damage.
Kotak General said that owing to the increase in hybrid and work from home policies, coupled with higher fuel prices and increasing inflation, there has been a change in driving preferences by most vehicle owners, which warranted the need for such a product which rewards customers who drive less.
“This will help in customer retention as well as help understand and serve our customers better following their driving behaviour,” the insurer said.