Sunday, 6 August 2017

17 years to catch up ?



17 years after it got introduced in US / UK , IRDAI { Insurance Regulatory and Development Authority of India } is considering introduction of Telematic Insurance for vehicles ( see news report below )

  
Some 6 months back , I wrote :


=================================


I expect that , over the next 5 years , all of these will converge into an





when :


       Prepaid RFID chips ( linked to Aadhar / Bank Accounts  ? ) for Road Taxes / Insurance Premiums / Toll charges / Fines / Carbon Credits ( through DBT )



How many years will it take us to implement ,









( Source : Times of India / 07 Aug )


IRDAI plans norms for pay-as-you-drive cover

Can driving fast result in a higher insurance premium for your vehicle?



Can your family find out the accident location and send help in case you become unconscious ?



The Insurance Regulatory and Development Authority of India (IRDAI) had put out a draft report on telematics on August 3, asking insurers to send their views on implementing technology and revisiting the pricing methodology.


The insurance regulator has also told insurers to look at alternatives to conventional telematics devices like smartphones with mobile apps, dongles, black boxes, Bluetooth, etc.



Some of the challenges in implementation the regulator pointed out are that "a good driver might still have to pay more premium if he clocks up many miles of driving.


Also, if a policyholder shifts insurers, then would the new insurer take into account previous driving record ?


Sanjay Datta, chief underwriter, ICICI Lombard General Insurance, said,

 " For mass adoption of telematics in India, cost of the device has been a problem. Now with the exposure draft, there could be better understanding of how the product design should be, pricing, etc.


We are of course keen on innovation and developing a sustainable product. We've had a couple of pilot telematics projects and it helps as a tool for data analysis to have a better understanding of customers and their driving patterns."


The IRDAI also noted that there could be issues surrounding data privacy.



Another challenge would be to get the devices fitted in the vehicle so as not to affect vehicle performance.



When Liberty 
Videocon General Insurance launched a telematics project in 2013, one of the biggest problems they faced was the reluctance from car service centres.


The regulator said that telematics implementation would involve higher costs, for which the alternative could be using smartphones or a `dongle' on the on-board-diagnostic (OBD) or car socket.



But will insurance policies get cheaper with implementation ?


" I think currently we are not looking at it from just a price standpoint. It is more about a value addition for the customer," said Sourabh Chatterjee, head-IT digital marketing, direct marketing and web sales, Bajaj Allianz General Insurance.





07  Aug  2017




  

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