Edelweiss General Insurance (EGI) has introduced a mobile telematics-based auto insurance product whose premium is based on the policyholder's use of the car, a top company official said..
The usage-based model measures both quantity and quality of driving through a mobile app and calculates premium accordingly, the official said. It is a subscription-based policy and customers can pay premiums monthly as per usage.
The product, SWITCH, is a completely digital, mobile telematics-based motor policy, EGI Executive Director & CEO Shanai Ghosh said, adding that the app detects motion and automatically activates insurance when the vehicle is driven, making it convenient and hassle-free for customers.
SWITCH has been designed keeping in mind the changing driving preferences of today's mobile-savvy customers, Ghosh said.
"Our attempt is to incentivize good driving and make customers pay only as per usage. It is the only on-demand motor product in the country that places complete control in the hands of customers. Pay only for how much you drive and how well you drive. 'Drive less, pay less; Drive better, pay less' is what SWITCH is all about," he said.
The product allows customers to pay premiums in monthly installments after the initial premium is paid to activate the policy, making it convenient for them, the company said.
While the policy covers accidental damage while in motion and switched on, the vehicle will be covered round the clock against fire and theft, it said.
Meanwhile, insurance regulator IRDAI on Wednesday permitted general insurers to issue sophisticated add-ons for motor insurance policy. These are telematics-based motor insurance plans for which the premium depends on usage of vehicle or driving behaviour.
Irdai has permitted general insurers to introduce tech-enabled concepts for the Motor Own Damage (OD) cover including Pay as You Drive and Pay How You Drive.
Pay as You Drive is a comprehensive motor plan where premium would depend on usage of vehicle while Pay How You Drive premium would be linked to driving behaviour.
