With the new add-ons permit in motor own-damage policies, IRDAI creates 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.
Every individual has different driving and vehicle usage patterns. With the new add-ons permit, own damage policy coverage can now be tailored based on a customer’s driving behaviour patterns, general upkeep, mileage and vehicle usage patterns to offer the best features they need. 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” practice and enable customers to avail a premium as per their usage, consumption and other requirements.
AI and Data Analytics will play a major role in this and help insurers track trends augmenting product innovation. Additionally, the new move will encourage people to take care of their vehicles, follow traffic rules and maintain good driving behaviour.
Regarding the motor floater policy, the coverage will enable consumers to have a single policy for their multiple vehicles. This would ensure seamless renewal and single window communication with the insurers.