Online motor insurer Beema has launched a pay-per-km auto insurance scheme that gives cashbacks to eligible policyholders.
Under it, those who drive up to 20,000km a year will receive at the end of the year a percentage of the premium 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’s accelerator program, NEXT, reported The National.
NEXT established BEEMA in collaboration with BCG Digital Ventures. The scheme is underwritten by a top insurance company AXA.
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. Customers also have the option of submitting an odometer reading, or having a Beema employee visit them to record their vehicle’s odometer.