Tech based Own Damage cover - IRDAI

?IRDAI has permitted general insurance companies to introduce the following tech-enabled concepts for the Motor Own Damage (OD) cover:

?1.????Pay as You Drive

2.?????Pay How You Drive

3.????Floater policy for vehicles belonging to the same individual owner for two wheelers and private cars

The above mentioned covers will be provided as add-ons to the basic policy of Motor OD.

?Pay As You Drive [PAYD]

?You pay the premium for the distance that you drive. However, the premium for the mandatory policy shall not be affected by the distance. Thus, if you drive less, you pay less for overall car insurance.

?It offers Comprehensive Coverage but is based on the distance travelled by the vehicle and the mandatory Third-party Liability Car Insurance Policy for the policy period

?While purchasing the policy:

• You notify the Current odometer reading and other car details.
• You will have to choose a ‘distance to be travelled’ slab. Usually, the slabs are as follows:
• ?< 3000 km
• > 3000 km but < 5000 km
• ?> 5000 km
• A?Telematic?Device is installed in your car by the insurer which helps to track the distance travelled and other analytical features. A Telematics App is installed in the policyholder’s phone as well which presents the relevant driving-related information.
• App communicates with the policyholder regarding exhaustion of the chosen kilometre slab and send subsequent top-op or renewal notifications.

?“Pay How You Drive” [PHYD]

?Telematics-based program collects information about your driving using mobile app technology. When you sign up for the program, you download the telematics app and enable some features on your mobile phone and begin to drive. Technology begins to collect data related to your driving habits as you drive.

4 variables are considered by the system?to grade you on, to generate a score to apply to your premium.?These factors or a combination of them have been shown to increase the risk of an accident:

• Time of day:?When you drive can be as important as how you drive.
• Speed:?Keep your speed in check so you have more time to react.
• Acceleration:?Smooth acceleration is easier on your car and good for your score.
• Braking:?Drivers who anticipate situations have fewer hard brakes.

?Motor Floater policy

?A Motor Floater Policy is a single?motor insurance?plan which covering?multiple vehicles. ?Covers all private vehicles (cars/two-wheelers) registered under a single owner.?

The vehicle with the highest?IDV?(Insured Declared Value) will be the Primary Vehicle and will be the sum insured amount of the motor floater policy. Other the vehicles under this plan are Secondary Vehicles

Driver behaviour is also considered when calculating the premium.?

Main advantage of purchasing a motor floater policy is discounted pricing.?