India-based Tata AIG General Insurance Company has launched a usage-based insurance (UBI) private car policy for car owners under the IRDAI Regulatory Sandbox.
The pay-as-you-drive policy offers personal accidental cover up to INR1.5m ($19,832) for owner and driver.
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Other value-added propositions include depreciation reimbursement, daily allowance, no claim bonus protection cover and more.
The insurer rolled out a telematics-based app called AutoSafe, which they can use to select the required plan and save on premiums.
How it works
Policyholders will be offered kilometre-based packages on the AutoSafe app. They can choose a package between 2500kms, 5000kms, 7500kms, 10000kms, 15000kms and 20000kms.
They can further top-up the plan if the kilometres are exhausted within the policy period. Policyholders can select a top-up plan between 500kms, 1000kms and 1500kms.
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By GlobalDataThis way, based on their usage, they can save money on cost.
Additionally, the app comes with a GPS tracking facility and works as an anti-theft device.
It also tracks distance travelled by the vehicle, speed and other parameters and rewards bonus kilometres on safe driving.
Commenting on the product launch, Tata AIG General Insurance consumer lines EVP and head Parag Ved said: “With the regulatory sandbox permitting telematics-based solutions, insurance will evolve to become more intuitive and responsive to the customer’s needs.
“Technology innovations can change the insurance paradigm, gone are the days when it used to ‘one size fits all’ approach.
“The shift towards pay-as-you-drive insurance makes sense in this uncertain time when unnecessary journeys are discouraged, and organisations and employees alike are discovering the benefits of working from home.”
