Automotive Telematics for Insurance

 

For: Preliminary & Mains

Topics covered:

• What is Telematic Insurance?
• About IRDAI

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News Flash

The working group set up by the Insurance Regulatory and Development Authority (IRDAI) has proposed the implementation of telematics in motor insurance to enable insurers to offer relevant risk mitigation solutions to customers.

The panel has recommended ‘Named Driver Policy’ as an option for private car and two-wheeler policies. A ‘named driver policy’ as an automobile insurance policy provides coverage only for drivers specifically named on the policy and not for other individuals driving the vehicle.

This will enable insurers to build a risk-profile based on the details of the drivers driving the vehicle, age, and experience.

 

Telematics or Black box insurance

• Telematics insurance is the system of ‘pay as you drive’ and ‘pay how you drive’ covers based on data gathered from the insured vehicle and its driver — for motor vehicles.
• Telematics is car insurance where a small box is fitted to the car.
• The black box measures various aspects of how, when and where the car is driven. This data can be used to calculate a personalised renewal quote or premium, or in services like the accident alert and theft recovery. The device will have four components — a GPS system, a motion sensor (or accelerometer), a SIM card, and a computer software.
• Insurance Information Bureau of India (IIBI) which acts as data repository for insurance companies, can manage the data and its protection.

 

 

Insurance Regulatory and Development Authority

• IRDAI is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India.
• IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India.
• It was constituted by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament passed by the Government of India.
• The agency’s headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.

 

Source: Indian Express

 

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