The way you pay the bill according to the amount of electricity you spend at home. In exactly the same way Usage Based Insurance (UBI) has been designed. Know about it.
If you use the vehicle, then you must also get it insured. Insurance plans work to provide coverage to your vehicle. In case of any kind of accident, we compensate for wear and tear etc. But with the increase in inflation, now insurance plans have also become expensive. If you are not able to get your vehicle insured due to high premium, then here today we will tell you about Usage Based Insurance (UBI).
The way you pay the bill according to the amount of electricity you spend at home. This insurance plan has been designed in exactly the same way. The more you use your vehicle, the more premium you will have to pay. Let us know all the information related to this special insurance plan.
What is Use Based insurance
In view of the increasing problem of the people amidst inflation, all the insurance companies are offering the Usage Based Insurance plan. This is an add-on cover available on motor insurance, which can be taken along with regular motor insurance. In this plan, the premium is decided on the basis of the usage of your vehicle. UBI Plan is being used in western countries for a long time. But in India it is new to the people. It is also called Pay as You Drive Scheme.
For Whom it is Beneficial
Such people who have a vehicle, but use it only occasionally, do not use it on a daily basis, this plan can be very beneficial for them. Under UBI, you pay as much as you use. In such a situation, through this plan, you can greatly lighten the burden on your pocket.
You can take advantage in two ways
1- Pay as you drive (PAYD): In this plan, the premium is calculated according to the kilometers driven so far and the duration of the vehicle. For this the insurer uses the data received from telematics to track the kilometer and duration.
2- Pay How You Drive (PHYD): On choosing this option, the premium is decided on the basis of how you drive the vehicle. If your driving skills are good, then this option can be beneficial for you. In this, the insurer uses telematics and GPS to know your driving habits, engine condition, vehicle speed etc. On the basis of these points are given to the driver and on the basis of the points, their premium is determined.
