Zuno’s PHYD - Everything you need to know
Driving in India is almost like competing in extreme sports. Drivers must manoeuvre around potholes, avoid bikes and cars breaking red lights, and pre-empt cars diverging in and out of lanes without using indicators. Unfortunately, careful drivers and those trying all sorts of stunts on the road end up paying the same premiums with traditional insurance policies. Insurance companies typically rely on the vehicle’s age, the policyholder’s location, and the vehicle value to estimate the car insurance premium. Usage-Based Insurance (UBI) allows for customised pricing that reflects the individual’s driving behaviours. So, drivers can now get rewarded for following safe driving behaviour with lower premiums. Let’s learn more about UBI and understand how Zuno’s PHYD (Pay How You Drive) add-on can make roads safer and insurance more affordable.
The need for vehicle insurance in India
Before we dive into UBI, let’s remind ourselves of the importance of vehicle insurance. India’s Motor Vehicle Act of 1988 made third-party car insurance plans mandatory for all vehicle owners. These policies help cover the cost of damages to third parties and their properties after an accident involving the covered vehicle. Unfortunately, these plans do not cover the cost of repairs to the insured car or bike. Vehicle owners usually opt for comprehensive car policies for more coverage.
What is UBI?
UBI (Usage based Insurance) is a usage and behaviour based insurance development that calculates insurance costs based on each policyholder’s behaviour. Insurance companies leverage technology such as smartphone apps and telematics devices to track a policyholder’s driving pattern and behaviour. It could measure the time spent on the road, rapid acceleration, hard braking, quick turns, and more. Insurance companies use the collected data to offer customised policies and premiums based on each individual’s behaviours and habits.
Zuno’s UBI offerings
In 2020, Zuno pioneered the establishment of UBI with the Zuno SWITCH Pay As You Drive insurance in India.
The add-on calculated the policyholder’s premium based on the average kilometre usage for their vehicle. The customised premium based on calculated usage enabled policyholders to enjoy comprehensive coverage for less premium.
Zuno Driving Quotient Challenge – The Precursor to PHYD
Before launching the PHYD policy, Zuno started a Zuno Driving Quotient (ZDQ) Challenge, a 15-day driving challenge that used telematics to help measure a person’s driving skills, provided them scores, and tips to improve their driving skills. On the basis of the score generated after 15 days, good drivers were offered a discount on their car insurance premium, on purchasing a Zuno Car Insurance Policy.
The best part was that anyone who owned a car could take the 15-day driving challenge and put their driving skills to test. The ZDQ initiative was launched with the goal of promoting good driving habits while also offering rewards.
Zuno’s PHYD
Based on the feedback and insights from ZDQ, in 2024, Zuno launched Zuno Switch Pay How You Drive (PHYD), India’s first mobile telematics-based car insurance add-on cover.
This innovative insurance product aims to promote safe driving behaviours by tracking and scoring each trip. At the end of the year, policyholders can qualify for discounts of up to 30% on their premiums, determined by their cumulative driving score.
How to make the most of Zuno PHYD
1.Understand the scoring system
Policyholders must understand what the PHYD app tracks to measure their driving. They can then improve their skills to enjoy higher benefits in the future.
2. Drive responsibly
Policyholders can get higher scores and enjoy better add-on benefits by keeping the following factors in check:
- Overspeeding
- Hard acceleration
- Sudden braking
- Fast cornering
- Distracted driving
3. Regular maintenance
A well-maintained car drives smoothly, enabling policyholders to adhere to road rules and enhance their benefits.
PHYD is another step towards embracing customised, tailor-made insurance policies in India. Opting for the add-on allows policyholders to test their driving abilities, improve their skills, and enjoy monetary benefits on premium renewals. It encourages and incentivises safe driving behaviour, making roads safer in India.
Visit the Zuno website today to check our UBI offerings and get a plan that offers premiums based on personal driving habits.
ARN: Zuno/Blog/PHYD blog/09/24/03. All rights reserved.
Disclaimer
Zuno General Insurance Limited does not assume any liability for actions taken based on the information contained in this blog. All insurance products and services are subject to the terms and conditions of the specific policy. Coverage and pricing may vary based on individual circumstances and eligibility.
