Insurance companies will soon offer vehicle owners analytics-based insurance that include ‘pay as you drive’ policies and covers where the premium varies according to driving behaviour. Companies have also been allowed to issue floater policies for multiple vehicles belonging to the same owner.
“As a step towards facilitating technology-enabled covers, IRDAI has permitted general insurance companies to introduce tech-enabled concepts for the motor own damage (OD) cover,” the IRDAI said in a statement. According to the regulator, the advent of technology has created a relentless pace for the insurance fraternity to rise up to interesting yet challenging demands of millennials.
Digit Insurance MD & CEO Jasleen Kohli said, “This will encourage insurers to come out with new tech-enabled motor products and increase competition. We wholeheartedly welcome it. With impending open architecture for all distribution channels and changes to ‘file and use’ products, the competition will ensure better value for customers.”
