In a bid to make motor insurance coverage extra reasonably priced in addition to to extend its penetration out there, the Insurance Regulatory and Development Authority of India (IRDAI) has allowed insurers to introduce ideas like Pay as You Drive, Pay How You Drive and Floater insurance policies for automobiles belonging to the identical particular person in motor personal injury insurance policies as add-ons.
Welcoming the IRDA transfer, insurers mentioned each particular person has completely different driving and automobile utilization patterns. With the brand new add-ons allow, personal injury coverage protection can now be tailor-made based mostly on a buyer’s driving behaviour patterns, common repairs, mileage and automobile utilization patterns to supply the perfect options they want.
“The premium will be determined as per an individual’s tailored coverage. Therefore, opting for Pay as You Drive or Pay How You Drive add-on in addition to the traditional policy will benefit those customers who have low vehicle usage, take care of their vehicles, follow traffic rules and maintain good driving behaviour. This will do away with “standard premium for all” observe and allow clients to avail a premium as per their utilization, consumption and different necessities,” mentioned Rakesh Jain, CEO, Reliance General Insurance.
T A Ramalingam, Chief Technical Officer, Bajaj Allianz General Insurance, noticed, “Customers do not necessarily use their vehicles in a similar manner where some customers may have a lesser frequency of vehicle usage or prefer to use public transport or organizational transportation facilities. Hence, this is where I feel IRDAI’s circular on motor insurance add-ons which is principally a usage-based cover as an add-on to an OD policy that gives customers additional protection for those customers who have a lesser frequency of vehicle usage or also based on the driving pattern of the insured.”
This means, for instance, that should you want to undertake a canopy based mostly on the variety of kilometers you drive your automobile, then you may go for this cowl. With this round, the insured also can buy one add-on motor cowl on a floater foundation for a number of automobiles he owns, be it both four-wheeler or two-wheeler automobiles. “The objective with such covers is that motor insurance essentially becomes more affordable, especially for those customers who primarily opt for only TP covers and overlook the benefits of OD covers. Such initiatives are a push in the right direction in increasing the much-needed penetration of motor insurance in India,” added Ramalingam.
AI and Data Analytics will play a serious function on this and assist insurers monitor traits augmenting product innovation. Additionally, the brand new transfer will encourage individuals to maintain their automobiles, comply with site visitors guidelines and keep good driving behaviour.
Regarding the motor floater coverage, the protection will allow shoppers to have a single coverage for his or her a number of automobiles. This would guarantee seamless renewal and single window communication with the insurers.
“With the new add-ons permit in motor own-damage policies, IRDAI has created a Win-Win situation. Being a futuristic GI company, we at Reliance General Insurance introduced similar concepts of Usage & Behaviour-based motor insurance offerings through sandbox products last year. Such models are cost-effective, futuristic and endorse good driving behaviour,” noticed Jain.
Source: www.financialexpress.com”