Mumbai, 6th August 2024: Zuno General Insurance, a new-age digital insurer today announced the launch of its new Pay How You Drive (PHYD) add-on, an innovative coverage option available for Private Car Package and Private Car Stand Alone Own Damage Policy (SAOD) Customers. This game-changing coverage option empowers users to assess their driving skills, receive an objective called Zuno Driving Quotient, and earn rewards for safe driving.
PHYD offers an objective assessment of driving behavior through mobile telematics embedded in the Zuno app. Customers can monitor their driving scores after each trip, gaining valuable insights into their performance and progression towards safer driving habits. While the score is readily available post-trip, and customers also have visibility to the discount applicable for different ranges of scores, the exact discount percentage applicable to the total premium amount is also revealed during renewal, ensuring transparency and clarity for customers. Zuno is the first company to explore usage-based insurance in India and has always been developing innovative products, especially around usage-based insurance. This is the extension of its first UBI offering ‘Switch’. This is the first time any company has used ‘driving behavior’ to personalize car insurance premiums in the country.
By offering discounts of up to a significant percentage on insurance renewal premiums, the PHYD add-on not only encourages safe driving practices but actively incentivizes good driving behavior through the discounts offered during renewal.
Sharing her thoughts on this groundbreaking industry launch, Shanti Ghosh, MD & CEO of Zuno General Insurance said, “We are super excited to introduce our new Pay How You Drive (PHYD) add-on. With PHYD, we’re not only reimagining insurance but also promoting safer driving practices by incentivizing safe driving behaviour. For us this isn’t just insurance; it’s a commitment to innovation, transparency, and a safer tomorrow. This will also give customers greater control over their insurance pricing, personalizing it which will be a departure from the current pricing approach.”
In addition to benefiting customers, intermediaries can also expect improved customer retention during renewal periods. This add-on will be available through all channels of the Company including Motor Dealers, Digital Agents and Point of Sale intermediaries, digital marketplaces, and the Company website.
Ahead of the launch, to gauge the interest level, category understanding, and sentiments on the product, Zuno General Insurance has also conducted a quantitative survey among ~600 respondents across 4 metro cities in India through an independent research agency
The findings reveal, that around 90% of people liked the overall concept of UBI and believe it helps improve driving behavior. Whereas ~80% find it beneficial and relevant, and are willing to consider opting for it, if available in the market. Interestingly, among those who are not aware of UBI, ~60% have shown their interest in buying UBI.
The top two most liked features of UBI are that it encourages better driving habits & rewards for safe driving. Having said that, 89% of respondents also believe rewarding safe driving will positively influence driving behavior.
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