Now not the companies, you will decide the premium of your bike-car insurance, Irda approved

Telematics in auto insurance is used to monitor ‘driving’ data, understand driving patterns and determine premium rates.

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Soon you will be able to decide your own car insurance. In fact, the Insurance Regulatory and Development Authority (IRDA) has allowed insurance companies to introduce telematics based insurance policies. Accordingly, the premium for motor insurance depends on the mode of use or driving of the vehicle. That is, if you do not drive safe and cover long distances, then you will have to pay less premium. It will all be in your hands. You will be able to reduce your premium by driving safe.

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change will come like this

Telematics in auto insurance is used to monitor ‘driving’ data, understand driving patterns and determine premium rates. According to IRDA, insurance companies need to keep pace with and adapt to the changing needs of the policyholders. IRDA has taken a step towards facilitating technology enabled insurance cover. Under this, the regulator has allowed general insurance companies to offer a technology-led concept for ‘Motor Own Damage’ (OD) ie damage cover of their vehicle. This includes ‘Pay As You Drive’ and ‘Pay How You Drive.

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Policyholders will have more rights

‘Pay as you drive’ and ‘pay how you drive’ are vehicle insurance models. It allows the policyholder to customize his/her insurance policy up to a limit. This helps in reducing the premium. ‘Pay as you drive’ is a comprehensive motor plan where the premium will depend on the use of the vehicle while the ‘pay how you drive’ premium will be linked to the mode of driving. The regulator has also allowed a ‘floater’ policy for multiple vehicles of the same owner. It is a single vehicle insurance plan which covers multiple vehicles.

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