Several companies are launching a “Pay as You Drive” insurance plan for private vehicles

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The usage-based private car cover, launched as part of the IRDAI regulatory sandbox, is more affordable and offers a personalized solution based on one’s driving profile in addition to offering other proposals to added value.

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Updated:
05 June 2020, 10:11

The app helps policyholders save on premium by selecting kilometers driven, promotes safe driving, works as an anti-theft device as it comes with GPS based tracking feature. (File photo) (Reuters)

Tata AIG General Insurance has joined the list of a select few insurers to offer usage-based insurance coverage to passenger car owners, which reduces overall premium payments.

The new policy called “AutoSafe” uses a next-generation telematics-based app and device to track car usage and decide the premium. The app helps policyholders save on premium by selecting kilometers driven, promotes safe driving, works as an anti-theft device as it comes with GPS based tracking feature.

Last month, Edelweiss General Insurance also launched a similar product offering similar benefits.

Available on all policies offering personal accident cover up to 15 lakh for owner and driver, this app also tracks vehicle distance, live speed and other driving habits and offers bonus kilometers for good driving at the time of renewal, the company said in a statement on Thursday.

The usage-based private car cover, launched as part of the IRDAI regulatory sandbox, is more affordable and offers a personalized solution according to one’s driving profile in addition to offering other proposals to added value like depreciation reimbursement, per diem, non-claim bonus, etc.

“Policyholders will benefit from a flexible mileage-based premium which provides savings. One can choose between 2,500, 5,000, 7,500, 10,000, 15,000 and 20,000 km,” he said, adding that if all the kilometers are exhausted during the insurance period, one can exceed- up to km between 500 and 1500 kms.

The AutoSafe device is GPS-enabled and linked to a mobile app that logs all information, tracks distance traveled, and generates reports on the condition of the vehicle or the driving habits of the insured. This telematics device is installed or connected to the car at the time of activation of the insurance contract and must be kept for the duration of the contract.

(Also read: This company launches car insurance based on the distance traveled)

This device also comes with a motion sensor and generates fuel economy reports in addition to hard braking, night driving and acceleration monitoring, in addition to fuel slip and sludge protection. dangerous driving habits.

Parag Ved, Executive Vice President, said that with a regulatory sandbox enabling telematics-based solutions, insurance will become more intuitive and responsive to customer needs and our new policy responds and reflects this.

“The move to pay-as-you-drive insurance makes sense in these uncertain times when unnecessary travel is discouraged and organizations and employees are discovering the benefits of working from home.”

Tata AIG General Insurance is a joint venture between Tatas and American International Group. Its gross written premium was 7,862 crores in FY19, vs. 5,567 crore in FY18.

Date of first publication: 05 Jun 2020, 08:32 IST

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