[blackwasp]

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 24x7, 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.







Link to the Team-BHP News

[nishsingh]

Interesting, but I dont think I would personally take this.

There might be technical issues, which can lead to the policy not being "switched on" at the Server end even though it shows as switched on at the app. ( I face this all the time with my Parental control app which shows the internet is off for my kids, but in reality, it isn't off).

Insurance to me is supposed to provide peace of mind, I don't want to be worrying about whether or not I switched on the insurance before taking the car out.

[blackwasp]

I just had a call with the sales representative and realized that this plan can be used by vintage and classic car owners who currently have only the 3rd party liability policy.

The fact that the age of the vehicle is not a consideration + ability to set the IDV as per one's requirement means that you can get a tailor-made coverage.

I got a quote for Rs. 4,750 (upfront) for a coverage of Rs. 3 lakhs for my 2005 WagonR, 2006 Maruti 800 and 2013 LX 125 and a monthly cost of Rs 430 assuming 20 days of usage per month.

I'm awaiting the fine print regarding claims handling, no. of claims etc. But I think this is a good idea for people with older cars or those with very less usage.

[bj96]

Interesting!

How does it work if the car or bike is parked, coverage is switched off, and there is damage inflicted e.g. neighbor's PYT while reversing crashed on your car's bumper or children broke the wing mirror with cricket ball or it is a sudden downpour and flash flood in the basement parking? Many such scenarios- have to read the fine prints.

-BJ

[tp_dominator]

The policy covers vandalism and theft even if the vehicle is parked and insurance is not switched on. Also natural calamities are covered too. However, there is one catch as you have to buy a separate third party insurance policy as this covers only your own damage part.

That being said, as blackwasp mentioned above, vehicle of any vintage is covered and one can claim unlimited times in the policy period and would not have to pay a single penny at the time of an insurance claim.

Attaching a brief benefit illustrator of the same.

[NAVREVV]

This looks like a ground breaking product by Edelweiss General Insurance and probably what consumers like us wanted. It makes sense that you don’t pay when you don’t drive. Added benefit is that it’s an app based product so you can Switch it on or off when needed.

[JohnyBoy]

Originally Posted by nishsingh

...

There might be technical issues, which can lead to the policy not being "switched on" at the Server end even though it shows as switched on at the app. ( I face this all the time with my Parental control app which shows the internet is off for my kids, but in reality, it isn't off).

Insurance to me is supposed to provide peace of mind, I don't want to be worrying about whether or not I switched on the insurance before taking the car out.

You can keep the policy always ON. This policy can work as a normal policy with switch off feature.

I feel any innovation in Indian auto insurance field has to be encouraged. It really doesn't help a good driver today. Claiming 3rd insurance is next to impossible in India. Happened to me 2 times, some other guy came and hit my car and i had to claim from my insurance. I don't know anyone who has successfully claimed 3rd party insurance. That is still ok, but the shouting and road rage is scary. Insurance companies should talk-fight-find out the fault and they should take the claim from the faulty person's policy. The drivers (customers) should not be involved.

Originally Posted by NAVREVV

This looks like a ground breaking product by Edelweiss General Insurance and probably what consumers like us wanted. It makes sense that you don’t pay when you don’t drive. Added benefit is that it’s an app based product so you can Switch it on or off when needed.

Yes, I hope these new things will inspire others and the government also to change the 3rd party insurance claims process.

[Aviationshark]

As someone with multiple cars at home, none of which are used more than twice a week each, this would be an excellent solution. Very keen to see this develop further.

[ike]

What happens if you have to use your car/bike for an emergency? The insurance is off and if I had to rush a neighbor/someone in the family to the hospital, I will probably forget about activating insurance and unless you have really good presence of mind, unforeseen circumstances are difficult to handle. Ironic, because we expect insurance to mitigate unforeseen circumstances.

[JohnyBoy]

Originally Posted by ike

What happens if you have to use your car/bike for an emergency? The insurance is off and if I had to rush a neighbor/someone in the family to the hospital, I will probably forget about activating insurance and unless you have really good presence of mind, unforeseen circumstances are difficult to handle. Ironic, because we expect insurance to mitigate unforeseen circumstances.

This is an extra feature they are giving - Switch off. It's optional, not compulsory. If you are worried about such incidents, then keep the insurance always ON. That's what you do now.

[ike]

Originally Posted by JohnyBoy

This is an extra feature they are giving - Switch off. It's optional, not compulsory. If you are worried about such incidents, then keep the insurance always ON. That's what you do now.

I was talking about a situation where it is off (maybe because you don't foresee any usage for your vehicle for a day or two) and you inadvertently overlook turning it on due to the circumstances.

If you mean to say get this feature but don't turn it off or on, I understand it works like any other policy.

[JithinR]

Has anyone here actually got this policy? From what I understand the company will return own damage premium that has not been utilized during the coverage period (I think if I got it right then any continuous 24 hour period where the coverage is not switched on is considered 1 day).

Curious to see if they actually returned the premium for any member here. I have both my car and bike renewal coming up and I was hoping to add them both and cover me, dad and sis under this one policy.

Like others have mentioned I was thinking I could simply switch the policy off when I don't expect to be driving for a few days.