This insurance policy is being brought for private two wheelers and four wheelers. The rate of insurance premium will also depend on the mode of driving your vehicle. That is, 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.
Apart from this, if you drive more than one vehicle, then the insurance of all the vehicles can be covered in a single premium. Explain that the new rules of the insurance regulator have come into force with immediate effect and companies can file related products.
Driving pattern will be tracked with GPS
You will be charged the vehicle premium according to the mode of driving your vehicle. For this, companies will use GPS devices to track your driving patterns. At the time of taking the policy, a small GPS device will be installed in your vehicle which will keep the company informed about your driving pattern. With this driving pattern, the insurance premium will decrease and increase. It is being told that insurance companies will decide the driving score with the help of technology and the premium will be fixed accordingly.
This company launched new policy
Edelweiss General Insurance (EGI) has launched a one of its kind comprehensive motor insurance product ‘SWITCH’ as part of a new initiative of IRDAI. Under this policy a mobile app will detect the speed of the vehicle and automatically decide the insurance as per the movement of the vehicle. This usage-based model measures not only the quantity but also the quality of driving and fixes the premium accordingly.
Insurance companies responded
Sharad Mathur, Managing Director and CEO, Universal Sompo General Insurance said, “Now the vehicle insurance premium will depend on our driving habits. This will motivate us to create a better driving record which will also improve our driving habits. “
‘Pay as you drive’ vehicle insurance includes covers where the insurance cost depends not only on how much we drive but how, where and when we drive. How we drive can also help us reduce our car insurance costs significantly. It monitors certain factors like braking, speed and driving time of the vehicle to find out the driving pattern over a stipulated short period of time.
Presently, there are two types of motor insurance cover – comprehensive insurance and third party insurance. In a comprehensive vehicle insurance plan, the third party as well as own damage cover is provided whereas in third party insurance cover is given only to cover the damage to the vehicle of others.