Insurance Regulatory and Development Authority of India (IRDAI) has allowed the general insurance companies to introduce a few tech-enabled concepts for the motor own damage (OD) insurance cover. These concepts includes — 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. These covers will be provided as add-ons to the basic policy of motor own-damage cover, the insurance regulator added.
Explaining the rationale behind this decision, IRDAI said “The advent of technology has created a relentless pace for the insurance fraternity to rise up to interesting yet challenging demands of the millennial. The general insurance sector needs to keep pace with and adapt to the changing needs of the policyholders.”
“In its perpetual endeavor to protect the interest of the policyholders and increase the insurance penetration in India, Insurance Regulatory and Development Authority of India (IRDAI) has been seeking to facilitate the industry to move with the times,” the regulator mentioned.
“Introduction of the above options will aid in giving the much needed fillip to motor own damage insurance in the country and increase its penetration,” IRDAI said in the notification.
Edelweiss General Insurance (EGI), has launched SWITCH, a one-of-its-kind comprehensive motor insurance product, under the IRDAI’s Sandbox initiative. Under this policy, the app detects motion and automatically activates insurance when the vehicle is driven, making it convenient and hassle-free for customers. This usage-based model measures not only the quantity but also the quality of driving and calculates premium accordingly.