If you drive safely then you will have to pay less premium. At the same time, you will have to pay more premium for bad driving.
Motor Insurance: Insurance sector regulator Insurance Regulatory and Development Authority of India (IRDAI) on Wednesday allowed general insurance companies to issue sophisticated add-ons for motor insurance policies. These are telematics-based motor insurance plans for which the premium depends on the usage or driving behavior of the vehicle. This means that the drivers will get relief in premium. However, this relief will depend on the mode of driving. If you drive safely then you will have to pay less premium. At the same time, you will have to pay more premium for bad driving. IRDAI has been making changes and improvements in the insurance sector from time to time keeping in mind the needs of the common people.
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IRDA said in a statement, “The concept of motor insurance is constantly evolving. Technology has helped insurance companies to grow rapidly. The general insurance sector needs to adapt and improve with the changing needs of the policyholders.” It further states that IRDAI is making continuous efforts to protect the interests of policyholders and to advance the insurance sector in India.
These insurance products are also approved
IRDA has taken a major step towards facilitating insurance cover through technology. IRDA has allowed general insurers to introduce tech-enabled concepts for Motor Own Damage (OD) cover, which includes Pay as You Drive and Pay How You Drive. According to these new rules, now the drivers will get relief in the vehicle premium. But this relief will depend on the mode of driving. If you will drive well and safely then you will have to pay less premium and if you drive poorly then you will have to pay more premium.
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Pay as You Drive is a comprehensive motor plan where the premium will depend on the mode of use of the vehicle while the Pay How You Drive premium will be linked to the driving behavior. The regulator has also allowed a floater policy for two-wheelers and private cars owned by the same owner. These covers will be provided as an add-on to the basic policy of Motor on Damage and their introduction will help in promoting and increasing the penetration of Motor on Damage Insurance in the country.