IRDAI allows general insurers to enable tech-driven add-ons in Motor-OD cover
The introduction of such add-ons would help give motor vehicle damage insurance in the country the much-needed push and help in expanding its penetration, according to the insurance regulator.
- Jul 6, 2022,
- Updated Jul 6, 2022 3:14 PM IST
The Insurance Regulatory and Development Authority of India (IRDAI) has granted general insurance companies permission to include add-ons in motor own-damage policies for two-wheelers and private cars called "pay as you drive," "pay how you drive," and "floater policies" for vehicles owned by the same individual owner.
According to the insurance regulator, the introduction of such add-on alternatives would help give motor vehicle damage insurance in the country the much-needed push and help in expanding its penetration.
“In its perpetual endeavour to protect the interest of the policyholders and increase the insurance penetration in India, IRDAI has been seeking to facilitate the industry to move with the times. And as a step towards facilitating technology-enabled covers, IRDAI has permitted general insurance companies to introduce the following tech-enabled concepts for the Motor Own Damage (OD) cover including Pay as You Drive and Pay How You Drive,” IRDAI said in a statement.
As part of the development, the insurance regulator has permitted the concepts of ‘Pay as You Drive’ and ‘Pay How You Drive’ apart from a floater policy for vehicles belonging to the same individual for two-wheelers and private vehicles.
While policyholders who choose the "Pay as You Drive" option can secure a comprehensive motor plan with premiums based on vehicle usage, those who choose the "Pay How You Drive" option can select insurance based on their driving habits and behaviour. Additionally, the floater insurance provision is intended to make life easier for two-wheeler and private automobile owners by removing the need to buy separate policies for each vehicle.
These covers will be offered as add-ons to the regular Motor-Own Damage (or Motor-OD) policy, according to the statement released by the insurance regulator.
Also read: Bombay HC upholds disqualification of Tata Motors from e-buses tender process
Also read: Maruti Suzuki remains top seller in PV segment; Tata Motors emerges leader in CV sales: FADA
The Insurance Regulatory and Development Authority of India (IRDAI) has granted general insurance companies permission to include add-ons in motor own-damage policies for two-wheelers and private cars called "pay as you drive," "pay how you drive," and "floater policies" for vehicles owned by the same individual owner.
According to the insurance regulator, the introduction of such add-on alternatives would help give motor vehicle damage insurance in the country the much-needed push and help in expanding its penetration.
“In its perpetual endeavour to protect the interest of the policyholders and increase the insurance penetration in India, IRDAI has been seeking to facilitate the industry to move with the times. And as a step towards facilitating technology-enabled covers, IRDAI has permitted general insurance companies to introduce the following tech-enabled concepts for the Motor Own Damage (OD) cover including Pay as You Drive and Pay How You Drive,” IRDAI said in a statement.
As part of the development, the insurance regulator has permitted the concepts of ‘Pay as You Drive’ and ‘Pay How You Drive’ apart from a floater policy for vehicles belonging to the same individual for two-wheelers and private vehicles.
While policyholders who choose the "Pay as You Drive" option can secure a comprehensive motor plan with premiums based on vehicle usage, those who choose the "Pay How You Drive" option can select insurance based on their driving habits and behaviour. Additionally, the floater insurance provision is intended to make life easier for two-wheeler and private automobile owners by removing the need to buy separate policies for each vehicle.
These covers will be offered as add-ons to the regular Motor-Own Damage (or Motor-OD) policy, according to the statement released by the insurance regulator.
Also read: Bombay HC upholds disqualification of Tata Motors from e-buses tender process
Also read: Maruti Suzuki remains top seller in PV segment; Tata Motors emerges leader in CV sales: FADA