“The concept of motor insurance is constantly evolving. The advent of technology has created a constant momentum for the insurance fraternity to meet the interesting yet challenging demands of the millennials. The general insurance sector has to adapt and adapt to the changing needs. of the policyholders,” IRDA said in a statement.
In its continuous endeavor to protect the interests of policyholders and increase insurance penetration in India, Insurance Regulatory and Development Authority It added that India (IRDA) wants to help the industry grow with the times.
As a step towards facilitating technology enabled covers, IRDA has allowed general insurance companies to introduce tech-enabled concepts. motor damage (OD) Cover including Pay as You Drive and Pay How You Drive.
Pay As You Drive is a comprehensive motor plan where the premium will depend on the usage of the vehicle while the Pay How You Drive premium will be linked to the driving behaviour.
The regulator has also allowed floater policy for same owner vehicles for two wheelers and private cars
These covers will be provided as an add-on to the basic policy of Motor Own Damage and their introduction will help in giving the necessary impetus to Motor OD Insurance and increase its penetration in the country. PTI DP MR