People who have purchased an automobile in the last few years know that car insurance is expensive, with a fixed premium that must be paid each year. But now, the Insurance Regulatory and Development Authority of India (IRDAI) has revealed a new set of car insurance rules that will allow the user to pay for the insurance based on their use of the automobile, under “Pay as you drive, pay how you drive”. and floating policy for vehicles belonging to the same individual owner for passenger cars and two-wheelers.

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(Auto insurance could become more affordable with the new rules)

In a notification, IRDAI said these technology add-ons for auto personal damage (OD) insurance aim to provide flexibility to auto users, allowing them to pay for insurance based on their driving history. , general insurers offering dynamic insurance coverage. The floating policy will allow people who own more than one vehicle to get one insurance coverage for all of their motor vehicles. Of course, the telematics-based car insurance plan will also impact the premium, with safer driving and less driving resulting in lower premiums. This should benefit the entire car insurance ecosystem.

(The auto insurance premium may change with the new set of rules)

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“This is a very welcome step towards a broader goal of incentivizing better driving behavior on Indian roads. While, for now, you are only paying for your ride, the end goal will be to ensure a lower insurance premium when we meet road and safety standards.The entire ecosystem, be it insured, insurance companies and partners will benefit in the long run term,” said Vivek Sharma, Founder and CEO of Fixcraft.

“The concept of auto insurance is constantly evolving. The advent of technology has created a relentless pace for the insurance fraternity to meet the interesting yet challenging demands of millennials. The general insurance industry must keep pace and adapt to the changing needs of policyholders,” IRDAI said in a statement.