How Does The Switch On And Off Feature Work In A Motor Insurance Policy

Motor insurance: With the Meter add-on, the insurance company allows users to pay for the insurance only when the vehicle is in use. Read more here

Did you know that you can switch on and off your car insurance policy as per usage and save some extra bucks? Yes, insurance companies provide this unique motor insurance scheme that allows users to pay the premium only on the days they use the vehicle. In other words, vehicle owners can switch their car insurance coverage ON and OFF based on usage, at the click of a button.

How does the feature work?

This add-on feature ie Meter or Switch On/Off feature is based on vehicle usage.

“This means that the insurers allow the insured to only pay for the coverage when the vehicle is under use. The owner of the vehicle can simply put the motor coverage to the off mode when it is not being used,” said Rakesh Goyal, Director at Probus Insurance Broker while talking to

Who can benefit?

This add-on feature works well on the budgets of vehicle owners who drive less or drive safely.

“Under this feature, the customers are awarded reward day if the coverage is in off mode for a continuous 24 hours span ie one reward day each for every inactive day,” Goyal said.

The pay-as-you-use model is expected to change the erstwhile industry standard of determining the premium for Motor OD (by age, make and model of the vehicle), to premiums based on usage and driving experience

How can reward days be used?

The reward days can later be redeemed either through discounts/cashback/certain percentage of Own Damage (OD) premium at the end of policy tenure (as mentioned in the policy term).

Having this innovative feature along with motor insurance helps the customers not only save on premiums while they are not driving but also promotes safe driving.

Which companies are offering it?

Kotak Mahindra General Insurance Company has recently announced the launch of its add-on Meter (switch on/switch off) cover with the private car insurance policy. Following the launch, Kotak General Insurance has become India’s first company to offer cashback via an add-on for a private car insurance policy.

Earlier this year, Edelweiss General Insurance (EGI) also launched the Switch Pay as you Drive (PAYD) add-on for its private car package policy.

(Edited by: Abhishek Jha)

First Published: IST


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