The motor insurance space has been going through innovations, as insurers are increasingly using telematics to ascertain the correct premium based on a policyholder’s risk exposure and distance driven. For instance, ‘'pay as you drive' policies charge a lower premium when the vehicle is driven less and charge higher when driven more.
The latest entrant in the innovative space is Edelweiss General Insurance (EGI). The company on Monday launched SWITCH, which is an on-demand comprehensive motor insurance product, under the insurance regulator IRDAI’s Sandbox initiative.
Under the policy, the app detects motion and automatically activates insurance when the vehicle is driven, making it convenient for customers. Moreover, it rewards policyholders if they are driving well, as it measures both the quantity and quality of driving and calculates premiums accordingly.
Shanai Ghosh, Executive Director and CEO, Edelweiss General Insurance said, “SWITCH has been designed keeping in mind the changing driving preferences of today’s mobile-savvy customers. Our attempt is to incentivise good driving and make customers pay only as per usage. It is the only on-demand motor product in the country that places complete control in the hands of customers. Pay only for how much you drive and how well you drive. ‘Drive less, pay less; Drive better, pay less’ is what SWITCH is all about. With this, we are also hoping to encourage people to drive better and safer.”
Policyholders are given a driving score based on several driving parameters such as over-speeding, distracted driving, sudden braking, etc. In addition, policyholders do not need to switch on the policy if they use their car, the app will do it for them. The policy is based on an app while many companies rely on a device installed in the car to track movement.
However, before going for such policies do keep in mind that you will be tracked by the insurance company as your location will be shared. Moreover, it suits people who do not travel very frequently as they can earn discounts based on good driving skills.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today