Cheaper insurance as IRDAI greenlits tech-enabled cover for motor

This will enable Indian insurers to offer analytics-based policies.

The Insurance Regulatory and Development Authority of India has permitted general insurers to introduce tech-enabled concepts for motor own damage covers as part of its first step towards facilitating technology-enabled insurance solutions.

This means that insurance companies may be able to issue cheaper insurance policies using ‘pay how you drive’ policies, where premiums would vary according to the driving behaviours of individuals.

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Insurers have also been allowed to issue ‘floater policy’ for multiple vehicles belonging to the same owner.

The Indian regulator introduced this add-ons as part of its bid to increase penetration to own damage insurance cover in the country.