The pandemic induced lockdowns and new norms of social distancing are causing people to adopt work from home culture, and ensure minimal face-to-face interactions with one another.
Tata AIG General Insurance has introduced an innovative scheme “pay as you drive” insurance policy. The insurance company launched a telematics-based GPS-enabled device called ‘Auto Safe’ which is linked to a mobile app that documents the distance traveled by the vehicle, speed, and other driving patterns. The AutoSafe device will be offered to all policies with a personal accident cover of up to ₹15 lakh. In a usual automobile insurance policy, customers require to pay a premium based on the car model. But, under this new scheme, they will have a choice to determine premiums according to their driving patterns and distance covered. This means that the clients will pay premiums for the distance they drive.
More about AutoSafe device
The telematic based device AutoSafe is linked to the car as soon as the automobile insurance policy becomes active and must be enabled throughout the policy period. The device is set to record all information regarding the distance traveled to generate subsequent reports about vehicle health or driving patterns of the policyholder. The information gathered so is evaluated and the policyholder is awarded points based on their performance. The device contains motion sensor support and generates fuel-saving reports, hard braking, night-time driving, and acceleration, and it also works as an anti-theft device.
USP
In these times of uncertainty, Tata AIG offers a flexible kilometer-based package which helps clients save money on premiums as you only have to pay for the cost incurred on usage. Policyholders are provided with an option to choose a distance range like 2,500 kilometers, 5,000 kilometers, 7500 kilometers, 10,000 kilometers, 15,000 kilometers, and 20,000 kilometers for a given policy period. In the case of exhausting the kilometers limit within the policy period, additional kilometers can be purchased by choosing the top-up kilometers option. The top-up choices offered are 500 kilometers, 1000 kilometers, and 1500 kilometers. To encourage safe driving, bonus kilometers are awarded for the good driving pattern at the time of the renewal of the policy.
The Usage-Based Insurance policy (UBI) is launched under IRDAI’s regulatory sandbox. The ‘Pay as you Drive’ policy includes other value-added propositions such as depreciation reimbursement and no-claim bonus. “With IRDA regulatory sandbox permitting telematics-based solutions, insurance will evolve to become more intuitive and responsive to the customer’s needs. The shift towards pay-as-you-drive insurance makes sense in this uncertain time when unnecessary journeys are discouraged, and organizations and employees alike are discovering the benefits of working from home,” says Parag Ved, Executive Vice-President & Head- Consumer Lines, Tata AIG General Insurance, on the launch of AutoSafe.
