Change Is the Name of the Game
Motor insurance in India has been undergoing a major change in recent years, thanks to new technological innovations and advancements, which are proving to be helpful for both insurers and drivers.
Welcoming one such innovative change in India, IRDAI has rolled out telematics-based motor insurance, which is also known as usage-based car insurance. This new-age model aims to reduce car insurance premiums where pricing of policies would take a more driver-centric approach.
Why This Step?
In telematics-based motor insurance, premium rates are decided on the basis of the driving style, driving time, total mileage, types of roads
How Does the Telematics-Based Device Work?
Telematics-based motor insurance policies work on the reports of a smart device known as Telematics or black-box, which is fixed in your car. This device tracks various aspects, such as your driving pattern, distance driven, the speed of the car, the car’s movements via GPS, which help in determining your car insurance premium.
For instance, using the telematics device, the insurance companies will conduct a risk assessment on the basis of your driving pattern and the premium will be calculated. This shows that the model has a standardized process that rewards good and safe driving with low car insurance premiums. This model is ideal for young and newly qualified drivers with less driving experience.
Telematics-Based Motor Insurance in India
In India, a few companies have introduced telematics-based motor insurance plans and services, whereby using these services you can avail discounts on your premiums.
The model has just seen the light of the day in India. Globally, telematics has proved to be a boon for both the insured and insurer. If you are a good driver who deserves to be rewarded in the form of discounted car insurance premiums, you can opt for telematics car insurance.
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