TUNE Insurance Malaysia Berhad (Tune Protect Malaysia) has launched the Pay-As-You-Drive (PAYD) benefit, an opt-in feature to the Company’s Motor insurance that rewards customers for driving less.
The policy is aimed towards easing high volume traffic and the number of vehicles on the road.
In the pursuit of encouraging drivers and car owners to drive less, PAYD is an ideal incentive to improve traffic conditions, reduce road accidents and urban stress which is also in line with the government’s goal of reducing road accidents by 50% in the year 2020 . Based on findings released in 2017 by the Malaysian Automotive Association (MAA), there are more than 28.2 million vehicles on the roads in Malaysia , which translates to 0.88 vehicles for every person in the country.
With the registration of almost 28.82 million vehicles in the Klang Valley alone based on 2017 findings, roads are getting clogged up, and many people rely on public transport to commute, thus leaving their cars not driven.
“Tune Protect understands that those who drive less should not have to pay more than other heavy drivers,” says the company.
“This coverage also targets the encompassing private car owners whose vehicles have a lesser mileage capped at 8,000 kilometres and provides benefits which include a 15-20% refund through a tier-based rewards system.”
The insurance coverage plan is made eligible for car owners whose mileage usage does not exceed 8,000km on an annual basis.
The policy offers additional protection for car owners aged between 23 and 60 years old, who owns private usage vehicles that are aged between 0 and three years old. This insurance policy is available as an opt-in along with Tune Protect’s established “Motor Easy” insurance policy.
The benefits of the rewards follow a tier system where the first tier allows for a 20% refund to mileage readings of 0-6,000km, while the second gives a 15% refund for the subsequent 6,001 km to 8,000km.
The policy has no additional cost and has no effect on the Non-Claim Discount (NCD).
Protection made easy for low mileage vehicle owners
Protection is made easy and more rewarding with the launch of PAYD that allows Malaysians to reap benefits by rewarding vehicles with a lesser mileage.
The insurance coverage is ideal for car owners who park their vehicles at MRT, LRT stations and are second car owners, hereby giving them affordable premium coverage based on their mileage clocked.
As PAYD is an opt-in endorsement available for private car insurance, it incurs no additional cost and rewards consumers for low mileage during the policy period.
The insured may earn up to 20% refund from their basic premium (excluding sales and service tax) paid upon completion of their 12-month policy.
The plan operates by referring to mileage data which is measured from the vehicle’s odometer that states the kilometres driven to-date.
During the policy period, the insured will need to submit their mileage data three times within 14 days of each submission point.
Understanding that low mileage drivers still need sufficient protection, Tune Protect emphasises the importance of ensuring every vehicle, even the ones with lesser mileage, to be adequately insured and assist consumers through covering this often- neglected aspect of motor safety.
“The latest PAYD policy strengthens our portfolio of provided insurance as it is an additional opt-in for our existing Motor Easy policy that is established in protecting Malaysian drivers. With the sales of new cars soaring by 22% according to the Malaysian Automotive Association, it is clear that the market for new cars remains active, and the ecosystem of new cars are constantly on the road,” said Tune Protect Malaysia CEO William Foo.
“These new cars would also be owned by drivers that are included in our younger consumer base, as PAYD caters to those from 23 to 60 years old. This would aid them in keeping their new vehicles insured, and also ensuring that they are utilising their coverages nicely.”
“PAYD is a great asset to push forward into the relatively untapped market of rewarding vehicle owners with lower mileage and push awareness towards the benefits of all our consumer bases ensuring they are protected.”
Tune Protect Group CEO Khoo Ai Lin said: “The launch of Pay-as-You-Drive augments towards benefitting the consumer segment in line with our ‘G.A.I.N strategy’ and to introduce our on-demand insurance solutions tailored towards lifestyle demand.
“The launch of our on-demand insurance protection under the promise of ‘Protection Made Easy’ includes Sports+ and PAYD aims to push the notions of conventional insurance.
“Tune Protect Group is also proud to announce that we recently won the Digital Insurance Initiative of the Year award for the Insurance Asia Awards 2019.
“This showcases Tune Protect’s bold initiative to become the leading insurance provider that specialises in providing insurance on-the-go, which our PAYD and Sports+ strives to provide.”
High GAIN for low mileage drivers
“Accessibility is one of the central characteristics of this product as the insurance policy is readily made available through the our agency channel, online as an opt-in for the Motor Easy insurance, and at Tune Protect branches nationwide,” says the company.
“This is in line with the Company’s vision towards pushing forward with the G.A.I.N strategy that leads towards the expansion of its business and consumer segment.
“This includes the diversification of insurance policies, widening reach beyond Malaysia and ensuring modern customers are well-insured.
“The PAYD policy includes insurance coverage against liabilities to third parties for bodily injury and death, third party property loss or damage and loss or damage to an individual’s vehicle due to accidental fire, theft or an accident.”
Optional benefits that come with the Tune Protect Pay-As-You-Drive include:
1. Windscreen damage;
2. Passenger liability cover (LLOP);
3. Damage arising from flood and landslide; and,
4. Legal liability to passengers (LLP).
For more information about Tune Protect PAYD plans and add-on coverage options, visit their website at https://www.tuneprotect.com/payd/ .
