The vehicle insurer is now permitted to issue technology-enabled add-on policies for own damage motor insurance plans based on the owners' usage and driving behaviour according to the Insurance Regulatory and Development Authority of India (IRDAI). According to a recent notification from the regulator, individuals will soon have the choice to purchase floater plans for numerous vehicles rather than individual policies for each vehicle.
IRDAI has approved the introduction of the following technologically advanced concepts for motor own damage (OD) covered by general insurance companies:
The "Pay as you Drive" coverage will let consumers pay for insurance based on how often they really use it. This coverage might be determined based on the client's approximation of their intended consumption throughout the cover year, and it could be monitored with the help of technology like a geotagging app. However, in the case that the client exceeds the declared consumption, the insurers would also need to specify the claim settlement procedure.
It's "Pay as you Drive" The add-on will depend on the owner's driving habits. Customers will have the option to select live tracking of their driving, including usage, speed, and other parameters. The insurer can provide a vehicle cover with dynamic pricing by utilising all of these.
Similar to floater health insurance, a "floater policy" for vehicles will enable people who own many cars or two-wheelers to select a single form of motor insurance to cover all of their vehicles.
More individualised pricing for vehicle insurance consumers will result from the adoption of these technologically advanced add-ons. Customers are currently divided into a number of homogeneous strata and charged according to the average loss cost of that stratum. With the new add-ons that have been suggested, pricing will be more directly correlated with a customer's driving distance, low/high mileage, and driving style, safe/unsafe driving.