Indians will have to pay a lower insurance rate if they drive better and safer. The Insurance Regulatory and Development Authority of India (IRDAI) has made a significant statement on a novel technology-enabled idea in vehicle insurance in the country. The IRDAI has launched technology-enabled concepts of ‘Pay As You Drive’ and ‘Pay How You Drive’ in the Motor Own Damage (OD) cover in its effort to promote insurance penetration and defend the interests of policyholders in India. The premium for these telematics-based ideas, which will be added to the basic vehicle insurance policy, will be computed based on driving behavior and miles covered.
The IRDAI stated in its release that it wants to adapt to the times and satisfy the tough needs of India’s millennials. ‘In its ongoing effort to protect policyholder interests and boost insurance penetration in India, the Insurance Regulatory and Development Authority of India (IRDAI) has sought to assist the sector in moving with the times. In addition, as a move toward enabling technology-enabled covers, IRDAI has authorized general insurance carriers to offer tech-enabled ideas for the Motor Own Damage (OD) cover,’ the agency stated.
The IRDAI stated that the notion of Motor Insurance is always developing and that ‘the introduction of technology has created a relentless pace for the insurance fraternity to stand up to exciting but daunting expectations of the millennials’. It said that the general insurance industry must keep up with and adapt to the changing requirements of policyholders.
Pay as You Drive, Pay How You Drive, and Floater policy for vehicles belonging to the same individual owner for two-wheelers and private cars are the latest additions to basic motor insurance. ‘ The introduction of these choices will help to give the much-needed boost to Motor OD Insurance in the nation and enhance its penetration,’ claimed the Indian authorities.
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