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Now, Save up on Premium with Pay As You Go Car Insurance Plans Available on



By, through its insurer partners Reliance General Insurance, Kotak General Insurance, and GoDigit General Insurance, now offers exciting Pay As You Go car insurance plans on its website. The Pay As You Go motor insurance add-on was recently announced by IRDAI to help make products more user-friendly and cost-effective for customers.

In this innovative category, Policybazaar offers a plan by Reliance that allows users to buy insurance based on how many kilometers they drive in a year and thus reduce their premium amount. The Kotak Meter (Switch On/Off) Cover, another plan, is sensitive to a customer’s desire of paying for a service only when using it. Yet another felicitous offering comes in the form of Go Digit’s Pay As You Drive plan. It is ideal for customers who tend to drive a fixed number of kilometres every year and would like to ration their premium accordingly.

The Pay As You Drive option was first introduced in 2020 and is typically based on usage or kilometres driven. Instead of having to pay a flat rate for everything, one pays a premium based on usage. This is especially beneficial for people who work from home or have more than one car.

Sarbvir Singh, President and CEO,, says, “The newly launched Pay As You Go plans are in perfect sync with our aim of making motor insurance a desirable purchase, and not merely a legal obligation. The rising popularity of these plans is proof that innovation is the present and the future of our industry. As one of Indias leading InsurTech, we are committed to many more such changes in the future.”

Tarun Mathur, Chief Business Officer – General Insurance,, adds, “The Pay As You Go model is a step towards a sustainable future in the world of insurance. It is a milestone in the evolution of motor insurance in India. It is symbolic of a rapidly changing industry which is striving to put the customer first. At the heart of this innovation is a maturing industry that empathises with the end user of each product.”

Each product available on the Policybazaar website has a unique advantage. Reliances Pay As You Drive plan comes with four driving ranges including 2,500 km, 5,500 km, 7,500 km and 10,500 km. The policy issuance process is simple; it entails a video inspection of the user’s odometer reading. One can easily top up their driving limit as and when they require.

The Kotak Meter (Switch On/Off) Cover comes with an industry-first feature that allows policyholders to switch off their own-damage policy when they are not driving. As per policy terms for every continuous 24-hour period the Own Damage cover is ‘off’, you will be rewarded with one bonus day. Policyholders are even entitled to get cashback at the end of their policy period.

Digits Pay As You Drive is ideal for car owners who drive less than 15,000 km annually. The insurer even offers an extra discount on your Own Damage premium if the policyholder drives within the permissible limit.

In all the above covers the fire, theft and third party risk continue to run for the entire duration of the policy period irrespective the policy is switched ‘off‘ or the kilometre limit is exhausted, as the case may be.

In the post-pandemic world, everyday travel has become increasingly optional. Pay As You Go offers a refined approach to a policyholder’s premium payment requirements. It gives the customer the thoughtful option of paying for insurance only when they actually use it. Policybazaar is the preferred choice for customers as it leads the industry when it comes to post-issuance policy services as well as claim settlement. Providing these comparable options to the customers helps them make an informed decision and choose their best-fit plan.

About Policybazaar ( is one of Indias largest insurance marketplaces. It is the flagship platform of PB Fintech, which owns the fintech brand,, and the lending & insurance marketplace in the UAE region, The Group has backing from a host of investors including the likes of PE funds and other family offices. started with the purpose to educate people on insurance products and with its offerings has addressed the large and highly underpenetrated online insurance markets.

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