New Delhi, Aug. 8 -- Pay-as-you-drive (PAYD) motor insurance plans are gaining popularity among consumer segments such as hybrid and remote workers, households with multiple cars and homemakers, a PolicyBazaar report revealed.

The report mentioned that hybrid or work-from-home employees comprise 35 per cent of PAYD customers. They represent the largest share of the customer base.

Pay as you drive implies 'usage-based' car insurance. It allows the insured person to pay for insurance based on the distance driven, rather than a flat fee. This means that those who drive their cars rarely will have to pay less premium amount with the PAYD insurance policy. There is no pre-condition or pressure of maximum kilometres to be driven.

The segment...