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This article is more than 1 year old.

Tata AIG launches 'pay-as-you-drive cover' for private cars

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Tata AIG General Insurance has joined the list of a select few insurers to offer usage-based insurance cover to private car owners which reduces the overall premium payout.

Tata AIG launches 'pay-as-you-drive cover' for private cars
Tata AIG General Insurance has joined the list of a select few insurers to offer usage-based insurance cover to private car owners which reduces the overall premium payout.
The new policy called 'AutoSafe' uses telematics-based next-gen application and device to track the usage of the car and decide on the premium. The app helps policyholders save on premium by selecting the kilometers-driven, promotes safe driving, works as anti-theft device as it comes with a GPS-based tracking facility.
Last month, Edelweiss General Insurance had also launched a similar product offering similar benefits.
Available on all policies offering personal accidental cover to the tune of Rs 15 lakh for owner and driver, this app also tracks the distance the vehicle has covered, live speed and other driving patterns and offers bonus kilometers for good driving at the time of the renewal, the company said in a statement on Thursday.
The usage-based private car cover, launched under the Irdai's regulatory sandbox, is more affordable offering customised solution towards one's driving profile apart from offering other value-added propositions like depreciation reimbursement, daily allowance, no-claim bonus etc.
"Policyholders will benefit from flexible kilometer-based premium that enables savings. One can choose between 2,500, 5,000, 7500, 10,000, 15,000 and 20,000 kms, it said, adding if all the kilometers is exhausted within the policy period one can top-up km between 500 and 1,500 kms.
The Autosafe device is GPS-enabled and is linked to a mobile app that records all information, tracks the distance travelled and generates reports about vehicle health or driving patterns of the policyholder. This telematics device is fitted or linked to the car as the insurance policy becomes active and must be kept throughout the policy period.
This device also comes with motion sensor and generates fuel-saving reports apart from monitoring hard-braking, nighttime driving and acceleration apart from guarding against fuel slippage and dangerous driving habits.
Parag Ved, executive vice-president, said with regulatory sandbox permitting telematics-based solutions, insurance will become more intuitive and responsive to customer needs and our new policy meets and reflects this.
"The shift towards pay-as-you-drive insurance makes sense in this uncertain time when unnecessary journeys are discouraged, and organizations and employees alike are discovering the benefits of working from home .
Tata AIG General Insurance is a joint venture between the Tatas and American International Group. Its gross written premium stood at Rs 7,862 crore in FY19, up from Rs 5,567 crore in FY18.
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