Drive less, pay less premium

July 07, 2022

How you drive and how much you drive would soon affect your vehicle’s insurance premium, the Insurance Regulatory and Development Authority of India (IRDAI) has notified. A “pay as you drive” add-on in basic policies will allow owners to opt for a lower premium provided their vehicle spends less time on the road. The premium will increase if the vehicle has more accidents and fines. Additionally, a floater facility would allow owners to club multiple vehicles, including two-wheelers, within the same policy. IRDAI has permitted general insurers to offer these add-ons to increase the penetration of own damage cover. The report adds that data will be tracked using Artificial Intelligence (AI) and telematics.

Source : Economics Times