Motor Insurance Policy for Multiple Cars and Vehicles: Owners having multiple vehicles may soon get an app-based single insurance policy. They will also get new options to financially protect their vehicles against any damages as insurers are planning to roll out unique features in their policies, reported The Indian Express. Insurance companies may offer insurance policies computed on the basis of driving pattern, distance covered while driving the vehicles or a first-of-its-kind mobile app-based single policy for multiple vehicles.
According to the report, insurance companies are gearing up to introduce innovative schemes such as ‘pay as you use’ or ‘pay how you use’ under pilot projects through the sandbox route. Various non-life insurance companies had filed as many as 173 proposals before the Insurance Regulatory and Development Authority of India (Irdai) under the regulatory sandbox structure out of which 33 proposals were accepted by the insurance regulator.
Irdai has framed pre-operational regulations under sandbox guidelines which say that the product can be launched only as a pilot and the period for launch and completion is from February 1, 2020 to July 31, 2020. The fresh framed sandbox guidelines have raised the premises for the insurance industry to experiment and innovate for newer policies driven by data and gen-next technology.
“Pay as you consume model will help us change this and charge premiums based on kilometers utilised by the insured or the amount of time they intend to drive the car. This will encourage more people to opt for motor OD insurance since majority of the vehicles only have third party liability policy as mandated by law,” the Indian Express quoted Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance as saying.
The IRDAI has already given permission for ‘pay-as-you-use’ and ‘pay-how-you-use’ policies for private cars to ICICI Lombard General Insurance while Edelweiss General Insurance has IRDAI’s backing for its motor floater policy designed for a single owner of multiple vehicles based on usages. Edelweiss General Insurance is planning to allow its policy buyers to set sub-limits on different vehicles and sum total of all the vehicles will be calculated while estimating the insurance premiums.