The Insurance Regulatory and Development Authority of India vide Circular dated 05 July, 2022 has allowed general insurers providing motor vehicle insurance to add following options to the Motor Own Damage policy:
- Pay As You Drive: A policy under which premium depends upon the number of kilometers the insured car is driven.
- Pay How You Drive: A policy under which premium is paid on a quarterly basis which will be based on driving score.
- Floater policy for vehicles belonging to the same individual: A single policy that covers multiple vehicles.
Own Damage Policy is the insurance policy that provides coverage to the insured vehicle as opposed to Third-party Car Insurance which provides coverage against third-party liabilities.
