As part of the new usage-based car insurance policy, the company has rolled out a new telematics-based app and device ‘AutoSafe’ using which policyholders can save on premiums by selecting the kilometers they will be driving
New usage-based car insurance policy introduced by Tata AIG in India. (Credit: Free-Photos from Pixabay)
Tata AIG General Insurance has launched a usage-based car insurance policy in India called Tata AIG AutoSafe, which enables the policyholders to pay premium only for the distance they drive.
The pay-as-you-drive solution has been launched under the IRDAI Regulatory Sandbox, said the Indian general insurance company, which is a joint venture between the Tata Group and US-based American International Group (AIG).
How the Tata AIG usage-based car insurance policy works
As part of the policy, the company has rolled out a new telematics-based app and device ‘AutoSafe’ using which policyholders can save on premiums by selecting the kilometers they will be driving. AutoSafe doubles up as an anti-theft device, said the company.
Tata AIG AutoSafe provides personal accidental cover up to INR1.5m ($19,832) for owner and driver through its new car insurance policy.
The app keeps track of the distance travelled by the insured car, real-time speed, and other driving pattern parameters apart from giving bonus kilometers for good driving behaviour during renewal of the policy.
The telematics device or app is fitted or linked to the insured car once the motor insurance policy becomes active and should be kept throughout the policy period.
The new car insurance policy is said to have other value-added propositions such as depreciation reimbursement, daily allowance, and no claim bonus protection cover.
According to Tata AIG, policyholders can select between 2,500km, 5,000km, 7500km, 10,000km, 15,000km, and 20,000km as the distance they need insurance for. In the case of exhausting the kilometers within the policy period, customers can buy extra kilometers by selecting between 500km, 1000km, and 1,500km.
Tata AIG General Insurance executive vice-president and consumer lines head Parag Ved said: “With the regulatory sandbox permitting telematics-based solutions, insurance will evolve to become more intuitive and responsive to the customer’s needs. We are meticulously working to arrive at new ways to enhance the experience of our valued customers.
“The value proposition is based on value-added services, personalized advice based on driving behavior and the reward.
“Technology innovations can change the insurance paradigm, gone are the days when it used to ‘one size fits all’ approach. It is time for personalized insurance products.”