08/07/2022
Now, pay for your motor insurance premium based on your driving behaviour....
‘Pay As You Use’ Smart driving, fair pricing
This is because the IRDAI has permitted general insurance companies to launch telematics-based motor insurance covers such as 'Pay as You Drive' and 'Pay How You Drive'.
You can now buy a motor insurance policy that charges you a premium based on your driving behaviour. This is because the Insurance Regulatory and Development Authority of India (IRDAI) has permitted general insurance companies to launch telematics-based motor insurance covers such as 'Pay as You Drive' and 'Pay How You Drive'. These policies charge you a premium based on the quantity and quality of your driving.
Insurers are also permitted to launch a floater policy for vehicles belonging to the same individual owner for two-wheelers and private cars. Experts say the ability to cover multiple vehicles under a single policy will greatly aid the convenience factor, by eliminating the need to hold individual vehicle policies and track their renewals. The covers will be offered as add-ons to the regular Own Damage policy, which covers expenses for damages done to the car.
Currently, insurers were launching telematics-based motor insurance policies under IRDAI’s Sandbox initiative, which is a framework set up by a regulator that allows insurers to conduct experiments in a controlled environment under regulatory supervision. For example, Edelweiss General Insurance (EGI) recently launched SWITCH, which is an on-demand comprehensive motor insurance product. the app detects motion and automatically activates insurance when the vehicle is driven, making it convenient for customers. Moreover, it rewards policyholders if they are driving well, as it measures both the quantity and quality of driving and calculates premiums accordingly.
