Insurance Switch Off Feature Details

How does the feature work?

This add-on feature i.e. 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 i.e. 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.