UAE: Pay-per-km insurance plan launched
Source: Middle East Insurance Review | Oct 2019
Online motor insurer Beema has launched a pay-per-km auto insurance scheme that gives cashbacks to eligible policyholders.
Under the scheme, those who drive up to 20,000km a year will receive at the end of the year a percentage of the premiums they had paid. For example, a customer who drives 4,000km would get a 25% cashback, while driving 8,000km would lead to a 9% cashback and 16,000km, a 7% cashback.
Beema was established in July 2018, as part of diversified energy group ENOC Group’s accelerator programme, NEXT, which was designed to unlock growth opportunities through disruptive innovation and strategic partnerships.
The scheme is underwritten by leading insurance company AXA and will offer customers the benefits of comprehensive cover.
NEXT found that many motorists in the UAE bought a range of car insurance services which were not really tailored to their individual needs. Customers had to pay the same premiums whether they drove a lot or very little, based solely on the make and age of their car. Beema identified this as a lucrative business opportunity and developed its pay-per-km model that catered to this challenge.
With its fully online experience, customers can get a quote within a few seconds and be fully insured within minutes. The mileage reading is taken annually from the vehicle’s odometer, so customers’ journeys will not be tracked by Beema. M