Drive less and get PAYD

13 Aug 2019 / 18:49 H.

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,” said the company.

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.

“Urbanisation has resulted in the increased number of vehicles on Malaysian roads which in turn contributes to environmental pollution due to the release of concentrated exhaust fumes from these vehicles.

“The introduction of PAYD is in support of a greener environment, helping reduce urban stress of commuting on roads, and the utilisation of public transportation, such as LRTs and MRTs to help reduce road congestion.”

Designed for the “park and ride” driving community, “second car” customer segment as well as city and neighbourhood drivers, PAYD rewards low mileage car owners with up to 20% refund on the basic premium paid at the end of the policy period.

Private car owners who are between 28 and 60 years old with vehicles aged up to three years old, and sum insured between RM40,000 and RM300,000 will be offered to opt-in for the PAYD benefit when subscribing to Tune Protect Motor insurance.

Following a tier system, customers will get to enjoy a 20% refund on their motor insurance premiums if their mileage readings are between zero and 6,000 kilometres, and a 15% refund if it falls between 6,001 and 8,000 kilometres at the expiry of the policy.

PAYD is a complementary plan that is free of charge and the refund is on top of the vehicle’s No Claim Discount (NCD).

Especially prevalent in the region of Klang Valley, also known as Greater Kuala Lumpur, there is a growing number of park and ride drivers who park their vehicles at the various integrated rail-based stations for their daily commute to work.

The seamless rail-based connectivity stretches from KL Sentral being the main hub to as far as Sungai Buloh, Kajang, Gemas (Negri Sembilan), Tanjung Malim (Perak), Gombak, Ampang and Port Klang, among others.

Second car owners, those who carpool as well as city and neighbourhood drivers will also get to enjoy the benefit of PAYD as their vehicles are driven sparingly, and likely to record lower mileage per year.

Acknowledging that there is a growing number of vehicles in these segments, Tune Protect believes that those who drive less should not be paying similar motor insurance premium than frequent drivers.

Protection made easy for low mileage vehicle owners

Protection is made easy and more rewarding with PAYD as car owners are rewarded for driving less.

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 short messaging system (SMS) and email to submit photographs of their vehicle’s odometer reading three times throughout the year.

These submission points are at the inception of the motor insurance policy, 180 days after inception, and at the point of expiry.

Tune Protect Malaysia CEO William Foo said: “As motor insurance is compulsory for every registered vehicle, we would like to encourage low mileage car owners to maximise the value of their insurance coverage with PAYD as they would get to enjoy a refund from the basic premium that is paid at the inception of their motor policy,”

“PAYD targets a relatively untapped car owners’ market by offering them a unique value proposition that is suited to their lifestyle.”

Tune Protect has recently won the Insurance Asia Awards 2019 in the Digital Insurance Initiative of the Year – Malaysia category for its on-demand insurance products which includes PAYD and Sports+.

Both products are set to change the way people perceive insurance as they are now able to get protection at the right time, the right place and the right price, much like how consumers view ride-hailing and food delivery services today.

Tune Protect Group Berhad group CEO said: “We are very humbled yet proud to have won this award as it propels us further into being a leading digital insurer in the region.

“In line with one of Tune Protect strategic pillars of leading in product innovation and differentiation, PAYD is the second on-demand and usage-based product that we have launched to the market after Sports+, a Personal Accident (PA) product for extreme sports enthusiasts, which was launched last November.”

Accessibility to PAYD

A feature of Tune Protect Motor Insurance coverage, PAYD is made available through multiple distribution channels that include the Company’s agency force, nationwide branches and online at its B2C portal.

For more information about Tune Protect PAYD, visit .

$!From left: Tune Insurance Malaysia Berhad head of strategic development Thai Mei Lih, Tune Protect Group Berhad group CEO Khoo Ai Lin, and Tune Insurance Malaysia Berhad CEO William Foo launching PAYD, recently.
From left: Tune Insurance Malaysia Berhad head of strategic development Thai Mei Lih, Tune Protect Group Berhad group CEO Khoo Ai Lin, and Tune Insurance Malaysia Berhad CEO William Foo launching PAYD, recently.

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