A week ago FBC announced a new insurance product; MyDrive and since the announcement they have done a really great job of answering all the questions that have been popping up around their new service. We felt it was an interesting service; more interesting than EcoSure’s Moovah but in that article, we raised some questions. Once again FBC had the answers and they’ve sent us the responses to some of the questions we raised in our last article.
TZ: The first sticky thing for me is that FBC MyDrive has a minimum premium of 5 000km mileage. This defeats the purpose of being flexible. I suggest that they allow people to pay for way lower mileage. Right now they are forcing customers to be covered for the whole year but their product then becomes just like any other product.
FBC: My Drive has a minimum premium because it has to take into consideration statutory requirements such as third-party insurance, taxes and management costs involved. As a customer-oriented insurer, we are committed to offering innovative, world-class, customer-driven, low cost and flexible services to our clients. As such, our new innovative product (My Drive) does not force customers to pay insurance for the whole year. The pricing concept for MyDrive allows clients to pay for the mileage (kilometres) travelled. For example, if a client travels a distance of five thousand kilometres (5000km) in a period of 6months, his/her cover would be exhausted. The client will be obliged to renew the insurance cover. In the same vein, another client can take twelve months (1 year) to cover a mileage of 5000kms. This implies that the client who takes twelve months to cover a distance of 5000kms will be insured for the whole year. In simple terms, clients have control over their insured period as it is determined by the distance travelled.
TZ: Another question that can arise is what happens if I have insured my vehicle for 5 000km and I only drive it for 1 000km in the year.
FBC: The customer-driven and unique pricing structure for the top-notch and affordable FBC Insurance MyDRIVE Usage Based Insurance Service provides a wide spectrum of our clients such as individuals, corporates, schools and churches the liberty to enjoy fair and affordable insurance cover. Clients’ cover will still be valid until they exhaust the mileage they bought. In this instance, if a client insurers his/her vehicle for 5 000km and only drives it for 1 000km in the year, the customer will still have comprehensive insurance cover for 4000km.
TZ: Will I still be covered in the New Year?
FBC: Yes clients will still be insured until they exhaust the Mileage bought.
TZ: Do I need to top up for 1 000km so I remain covered for the minimum 5 000km?
FBC: One is covered until they fully exhaust the mileage they bought.
TZ: If so, how then does their offer become cheaper?
FBC: The FBC MyDrive Usage Based Insurance Service is cheaper because the insured clients have complete control over their driving habits and vehicle usage as compared to traditional insurance that charges a flat fee for a given period irrespective of vehicle usage.
TZ: I am also wondering a lot about whether My Drive has comprehensive cover. How are they able to insure against theft based on mileage?
FBC: MyDrive provides customised comprehensive insurance cover which allows customers to save up to 50% on their vehicle insurance premiums in line with the distance covered. That is, the innovative service’s basis of cover is comprised of ALL risks such as physical loss or damage including THEFT. The major difference between MyDrive and Traditional forms of insurance is that the product allows clients to enjoy cost savings hinged on customised and fair insurance premium charges based on the customer’s actual annual mileage. Clients pay for the mileage (kilometres) they drive and enjoy world-class insurance Cover.