Indians will just have to pay a small insurance rate if they drive safer and better.The Insurance Regulatory and Development Authority of India (IRDAI) have made a significant statement on a novel technology-enabled idea in vehicle insurance in the country.
The IRDAI has launched tech ideas of “Pay As You Drive” and “Pay How You Drive” in the Vehicle Own Damage (OD) cover in its effort to promote insurance penetration and In India, we protect the interests of policyholders.
The premium for these telematics-based ideas, which will be added to the basic vehicle insurance policy, will be computed based on driving behaviour and miles covered.
The IRDAI stated in its release that it wants to adapt with the times and satisfy the tough needs of India’s millennials.
“In its continued endeavour to protect policyholder interests and increase insurance penetration in India, the Insurance Regulatory Development Authority of India (IRDAI) has attempted to assist the sector in keeping up with the changes.”
“In addition, as part of its efforts to promote technology-enabled covers, IRDAI has authorised general insurance providers to offer tech-enabled concepts for the Motor Own Damage (OD) cover,” the agency noted.
The IRDAI stated that the notion of Motor Insurance is always developing and that “the introduction of technology has set a relentless rate for the insurance fraternity to stand up to exciting but daunting expectations of the millennials.”
It stated that the general insurance industry must keep up with and adapt to a changing requirements of policyholders.
The latest additions to basic motor insurance include Pay as You Drive, Pay How You Drive, and Floater coverage for vehicles owned by the same individual for two-wheelers and private cars.
“The implementation of these options would assist to provide the much-needed push to Motor OD Insurance in india and increase its penetration,” the Indian authorities asserted.