Why should a careful driver who doesn’t cover many miles and drives predominantly during off-peak hours should pay the same premium as the one who drives recklessly?
“There are a variety of driving habits of customers and usage of vehicles also varies widely because of many factors like new forms of transport, demographic shifts, whether one is driving one’s own car or somebody else’s etc,” IRDA said while floating the concept of ‘telematics’ to determine motor insurance premium. Telematics is about integrated use of telecommunications and IT for vehicles. It is used for real-time navigation, roadside assistance, and vehicle tracking.
Telematics insurance is also known ‘Black Box Insurance’, ‘GPS Car Insurance’, ‘Smart Box Insurance’, ‘Pay-as-you- Drive-Insurance’ and ‘Usage Based Insurance’, among others.
