Now your way of driving and use of vehicles can determine the nature of your own damage motor insurance. The Insurance Regulatory and Development Authority of India (IRDAI) has permitted the general insurers to introduce sophisticated technology enabled add-ons to the Own Damage (OD) cover.
“As step towards facilitating technology-enabled covers, IRDAI as permitted general insurers to introduce tech-enabled concepts of pay as you drive, pay how you drive and floater policy for vehicles belonging to the same individual owner for two-wheelers and private cars,’’ the insurance regulator said in a release issued on Wednesday. These covers would be provided as add-ons to the basic policy of motor OD.
The move by the regulator comes in the wake of a series of reforms being introduced recently including permission for both life and general insurers to launch products without pre-approval as part of perpetual endeavours to protect the interests of the policyholders and increase in insurance penetration.
The concept of motor insurance is constantly evolving with advent of new technologies, IRDAI said, adding: “the general insurance sector needs to keep pace with and adapt to the changing needs of the policyholders.”
The introduction of these options will aid in giving the “much-needed” fillip to motor OD insurance and increase its penetration, according to the regulator.