In the wake of the coronavirus outbreak, with a global shift towards work-from-home practices and reduced travel, Tata AIG General Insurance has taken a progressive step by introducing a revolutionary “pay as you drive” insurance policy. This policy features the cutting-edge GPS-enabled device, AutoSafe, which syncs with a mobile app to track various driving parameters, including distance traveled, live speed, and driving patterns. Additionally, it offers personal accidental cover of ₹15 lakh for both the vehicle owner and the driver.
Unlike conventional auto insurance policies where premiums are based on the car model, Tata AIG‘s “pay as you drive” policy allows customers to tailor their premiums according to their driving habits. This means that individuals will only have to pay premiums based on the distance they drive their cars.
The AutoSafe Device
The AutoSafe device is linked to the vehicle as soon as the motor insurance policy becomes active and must be retained throughout the policy period. This device records comprehensive information, monitors the distance traveled, and generates insightful reports on the vehicle’s health and driving patterns. Over time, each policyholder receives points based on their driving performance. The device also includes motion sensor support and generates fuel-saving reports while monitoring aspects such as hard braking, nighttime driving, and acceleration.
Savings on Premiums
Compared to traditional policies, Tata AIG’s flexible kilometer-based package offers significant savings for policyholders. Customers can choose from different options, such as 2,500 kilometers, 5,000 kilometers, 7,500 kilometers, 10,000 kilometers, 15,000 kilometers, and 20,000 kilometers. If policyholders exceed their chosen kilometers within the policy period, they can purchase additional kilometers through the top-up option. Top-up options include 500 kilometers, 1,000 kilometers, and 1,500 kilometers, providing savings on costs based on actual usage.
Promoting Safe Driving
The “pay as you drive” policy also encourages safe driving habits. It offers bonus kilometers for good driving behavior during the policy renewal, which results in lower premiums for those who drive less.
IRDAI’s Regulatory Sandbox
Tata AIG’s customized auto insurance policy is launched under IRDAI’s regulatory sandbox. This policy goes beyond standard coverage and includes other value-added propositions such as depreciation reimbursement, daily allowance, and no claim bonus protection cover.
Parag Ved, Executive Vice-President & Head-Consumer Lines at Tata AIG General Insurance, believes that the introduction of telematics-based solutions signifies a significant evolution in the insurance industry. These innovations make insurance more intuitive and responsive to customers’ needs. The “pay as you drive” approach is especially relevant during the current uncertain times when unnecessary journeys are discouraged, and work-from-home arrangements offer benefits for organizations and employees alike.