Tata-AIG has launched the new usage-based car insurance policy. Along with that, the insurance company has rolled out a new telematics-based application and device ‘AutoSafe’. The policy is designed to enable policyholders save more money on their premium by paying only for the kilometres that they drive.
About the AutoSafe Solution
Tata-AIG came up with this pay-as-you-drive solution under the IRDAI Regulatory body with a joint venture of and US-based American International Group (AIG).
Its AutoSafe device also works as an anti-theft device. It offers personal accidental cover up to nearly INR 15 lacs for the owner. This also includes the coverage for the driver as per the new policy.
In this app, there is a tracking option by which the distance traveled by the car insured can be recorded. It also tracks down the driving style and real-time speed. There are some extra kilometres also covered in the policy as a bonus point for the good driving nature which the policyholder shall get during policy renewal.
You can link the app or device to your insurance car right after the insurance policy becomes active. Policyholders must have a constant look at the policy period and its expiry.
The telemetric 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.
As per Tata AIG, the policyholders can choose from the distances mentioned below to insurance the car:
If the distance already gets covered within the policy period, the customers also get the choice to purchase an additional kilometre by choosing between 500km to 1,500km.
Tata AIG General Insurance executive vice-president head Mr. Parag Ved stated that as the regulatory authority permits the telematics-based options, the insurance can evolve in the future to meet the needs of the policyholder.
He also added that the team is currently striving hard to come up with better options for valued customer’s good experience. With such possible changes in the policy, it is evident that technology innovation can even change the paradigm of insurance and thus policyholders can always choose personalised insurance products.
Such innovative insurance products will certainly bring down the ownership cost of cars. It will also give a boost to the reeling car industry.