Owners of multiple vehicles will soon be able to pay a single premium for all the vehicles. The Insurance Regulatory and Development Authority of India (IRDA) has approved for usage-based motor insurance. Motorists can pay a premium based on the usage of their vehicles.
A single premium for multiple vehicles will optimise the sum insured for the vehicle user. A person who owns two or more vehicles does not drive all at the same time. This creates room for offering a ‘floater’ policy for such users. ICICI Lombard has announced that it would launch a ‘floater’ policy for owners of two or more vehicles. The ‘floater’ concept is similar to the family-floater health insurance policies for coverage of the entire family.
ICICI Lombard plans to offer multiple vehicle floater through an app-based interface. The app will monitor the driving patterns of owners and offer a reward for safe driving practices.
The features are unlike the present where premiums are calculated based on the vehicle model, make, age, location and the zero claim bonus applicable to the policy. The app will give scores to customers which will reflect in the calculation of premium at renewal.
The new product is also likely to encourage people to go for a Motor OD insurance in a scenario where most vehicles only have ‘Third Party Liability’ policy.
Insurers also plan to use the app platform to monitor and manage health risks based on driving behaviour, and so on. ICICI Lombard plans to is manage diabetes and cholesterol-related coverage. Bajaj Allianz General Insurance is planning a ‘co-pay’ under health insurance with a tie-up with GOQii. The percentage of the co-pay would be decided based on the engagement of the policyholder on the platform given by GOQii.
For any clarifications/feedback on the topic, please contact the writer at email@example.com
I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.