India: IRDAI permits “sophisticated” usage-based add-ons to basic motor insurance policies
The Concept of Motor Insurance is constantly evolving. The advent of technology has created a relentless pace for the insurance fraternity to rise up to interesting yet challenging demands of the millennials. The general insurance sector needs to keep pace with and adapt to the changing needs of the policyholders.
In its perpetual endeavor to protect the interest of the policyholders and increase the insurance penetration in India, Insurance Regulatory and Development Authority of India (IRDAI) has been seeking to facilitate the industry to move with the times. And as a step towards facilitating technology-enabled covers, IRDAI has permitted general insurance companies to introduce the following tech-enabled concepts for the Motor Own Damage (OD) cover:
- Pay as You Drive
- Pay How You Drive
- 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.
Introduction of the above options will aid in giving the much needed fillip to Motor OD Insurance in the country and increase its penetration.
