IRDAI Allows Insurers to Introduce ‘Pay-as-You-Drive’, Other Add Ons in Motor Insurance Policies
These covers will be provided as add-ons to the basic policy of motor own-damage cover
IRDAI said that introduction of the mentioned add-on options will aid in giving the much needed fillip to motor own damage insurance and increase its penetration
Insurance Regulatory and Development Authority of India (IRDAI) has allowed the general insurance companies to introduce a few tech-enabled concepts for the motor own damage (OD) insurance cover. These concepts includes — 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. These covers will be provided as add-ons to the basic policy of motor own-damage cover, the insurance regulator added.
Explaining the rationale behind this decision, IRDAI said “The advent of technology has created a relentless pace for the insurance fraternity to rise up to interesting yet challenging demands of the millennials. The general insurance sector needs to keep pace with and adapt to the changing needs of the policyholders.”
“In its perpetual endeavor to protect the interest of the policyholders and increase the insurance penetration in India, Insurance Regulatory and Development Authority of India (IRDAI) has been seeking to facilitate the industry to move with the times,” the regulator mentioned.
“Introduction of the above options will aid in giving the much needed fillip to motor own damage insurance in the country and increase its penetration,” IRDAI said in the notification.
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