PAYD (Pay-As-You-Drive) is an opt-in feature of Tune Protect Malaysia`s Motor Insurance plan which rewards car owners who have low mileage with a refund of the basic premium paid. It was introduced in August 2019 in support of a greener environment, helping reduce urban stress of commuting on roads, and to encourage the use of public transportation such as LRTs and MRTs in easing road congestions in the country.
Tune Protect Malaysia recently enhanced PAYD eligibility criteria as more Malaysians have embraced the work-from-home (WFH) practice, by extending the eligibility age of insured (vehicle owners) to 65 years and age of vehicles to 10 years.
More drivers can enjoy benefit
This enhancement is expected to benefit more drivers and enable a wider segment of vehicle owners to enjoy the benefits of PAYD. Acknowledging the fact that more people are working from home, Tune Protect Malaysia believes that those who drive less should be aptly rewarded by paying less premiums than the frequent drivers.
Private car owners who are between the ages of 28 and 65 years and who own vehicles aged between up to 10 years old with sum insureds ranging between RM40,000 to RM300,000 will be qualified to opt-in for the PAYD benefit when purchasing to Tune Protect Motor insurance.
Refunds based on mileage
Following a tier system, customers will get to enjoy a 20% refund on their basic motor insurance premiums if their mileage usage is between not more than 6,000 kms, with a 15% refund if it falls between 6,001kms and 8,000 kms at the expiry of the policy. The No Claim Discount (NCD) typically offered for not making any compensation claims during the year will still apply as PAYD is a complementary plan that is free of charge.
The plan operates by referring to the vehicle’s mileage data that is recorded from the odometer, stating the kilometres driven to-date. Customers who opt-in for PAYD will receive a personalised URL link via SMS and email to submit photographs of their vehicle’s odometer reading thrice during the duration of the year. These submission points are at the inception of the motor insurance policy, 180 days after inception, and at the point of expiry.
“We received a lot of positive feedback from vehicle owners when we first introduced PAYD including requests to expand its eligibility criteria so that more car owners can enrol and benefit from this feature,” said William Foo, CEO of Tune Protect Malaysia. “We are delighted to be able to fulfil these requests and quite timely in this new normal where more and more individuals have adopted to the WFH arrangement permanently. We want to offer the opportunity for people to enjoy the benefits earned from their everyday lifestyles.”
