Motor insurance firms may now charge you a premium depending on how you drive since the Insurance Regulator, IRDA, has allowed insurance businesses to implement tech-enabled ideas that consider the vehicle owner’s driving behaviour.
Insurance firms may now charge you premiums based on the ‘pay as you drive’ and ‘pay how you drive’ concepts, according to the new law.
Your driving abilities will now have a greater impact on the rate you must pay for your vehicle insurance coverage. IRDA said last week that the two new rules will take effect immediately.
Furthermore, IRDA has allowed insurance firms to sell floater policies to people who own several vehicles, which may be supplied as an add-on depending on the owner’s driving history.
The IRDA’s decision to launch telematic-based motor insurance policies would make insurance more inexpensive and enhance car insurance penetration in the nation.
Three new forms of automobile insurance coverage are described.
Pay as you go
Vehicle owners will be able to pay for insurance coverage depending on their use. The car owner must make a statement of the intended use, which may then be traced via geo-tagging. Insurance providers must define the claim procedure if a consumer exceeds the indicated consumption.
Pay attention to how you drive.
This will be determined by how you operate the vehicle. Customers may select for realtime monitoring of their driving metrics such as speed, usage, and others. These characteristics may be used by insurance firms to determine premiums.
Floater policy for those who own more than one car
If the vehicle owner owns more than one vehicle, such as a two-wheeler or a four-wheeler, the add-on will cover all of them. According to an IRDA statement, the notion of vehicle insurance is always developing.
Technology has accelerated the insurance industry’s ability to meet the exciting and complex expectations of millenials. The general insurance industry must keep up with and adapt to policyholders’ evolving requirements.
The aforementioned new add-ons, together with current own damage protection, will provide car owners with additional options.
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According to the IRDA, poor or hasty driving will earn a large premium, and the vehicle’s driving pattern will be tracked via global positioning systems. A tiny gadget or an application will be installed in the car to monitor and communicate information about the vehicle owner’s driving habits with the insurance provider.
A driving score will be established with the use of technology, which will help insurance firms calculate the price.