How you drive and how much you drive would soon affect your vehicle’s insurance premium, the Insurance Regulatory and Development Authority of India (IRDAI) has notified. A “pay as you drive” add-on in basic policies will allow owners to opt for a lower premium provided their vehicle spends less time on the road. The premium will increase if the vehicle has more accidents and fines. Additionally, a floater facility would allow owners to club multiple vehicles, including two-wheelers, within the same policy. IRDAI has permitted general insurers to offer these add-ons to increase the penetration of own damage cover. The report adds that data will be tracked using Artificial Intelligence (AI) and telematics.
Source : Economics Times