Skip to main content

Future Generali car insurance - `pay-as-you drive'

Drive safely and pay less for your car insurance

 

Future Generali to float pay-as-you-drive motor insurance plan "WE are now devising the pricing model for the product and hope to file it with Irda for approval within a month" KG Krishnamoorthy Rao MD &CEO, Future Generali Insurance

BEING a safe driver on the road and adhering to traffic rules are virtues that go un-acknowledged in India.


But, there could soon be an incentive for such healthy-driving behaviour in the form of paying a lower insurance premium for the vehicles.

Life and general insurance company, Future Generali, is planning to launch a `pay-as-you drive' motor insurance product soon. The `pay-as-you drive' model, where the vehicle owner pays motor insurance premium based on his driving behaviour and the mileage he clocks on his vehicle, may soon be introduced in India.

Since drivers with a higher mileage or baddriving behaviour are more prone to risk of claims, the premium paid by them would be much higher than the one paid by better drivers and less frequent users of vehicles. Those who go on a long holiday would also not be required to pay for the whole year but only for the number of days they actually use the vehicle.

"We have conduced the pilot studies in three-four cities and have collated data. We are now devising the pricing model for the product and hope to file it with the Insurance Regulatory and Development Authority (Irda) for ap proval within a month. We hope to launch it in the market within three months," said KG Krishnamoorthy Rao, managing director and chief executive officer, Future Generali Insurance.

The company has tied up with technology services firm, Logica, which has developed a product, Logica Crimson, which calculates the premium on a real-time basis using data from a device aboard the vehicle and gives real-time data on vehicle usage.

A usage-based insurance solution will ensure a lower claims ratio for insurance companies. The high-risk users would also realise that they have to drive carefully to avail settlement in case of a claim.


Also, claims arising from vehicle theft would go down as the device would help track vehicles in case of theft.

Selling the insurance product would require embedding the tracking device on the vehicle, which would have to be paid for.


Embedding the product and tracking it would carry a cost. It has to be built into the premium amount.


We cannot charge the entire cost in the first year premium but will look at phasing it out over three years. We believe that the customer would not mind paying slightly more when they know that it will help settle claims in genuine cases.

 

Popular posts from this blog

Gold: What Can Trigger the Inevitable?

A stronger dollar or rising interest rates could derail the epic yellow metal mania   Before you sell that last piece of jewellery, keep in mind that the gold price will not go up indefinitely. There are number of reasons why it might crash. If you're over weighted in gold or commodities, the warning is the same: A stronger dollar, strengthening US economy or rising interest rates could derail the epic yellow metal mania. Who knows? Congress could even reach an agreement to clear up its balance sheet and pay down its debt. What are the chances of any of this happening? It's beyond the limits of my minuscule, clouded crystal ball, which is about the size of a pin-head.   Nevertheless, you should prepare your portfolio for any number of eventualities, which can be easily accomplished with exchange-traded funds. Gold is troublesome in my book because it really isn't an investment. It's a reserve currency of sorts that's heavily traded by institutional investor...

What is Statutory Liquidity Ratio - SLR?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 What is Statutory Liquidity Ratio - SLR ?   Last week, the RBI cut statutory liquidity ratio ( SLR ) by half a percentage point to 22.5%, effective June 14. By this, the central bank intends to release additional money into the banking system. SLR is the amount of funds that every commercial bank should have either through its holdings in government approved bonds and securities, gold or a combination of these assets. This is another way of ensuring enough liquidity for each bank before they lend to customers. By reducing SLR, the RBI released another half a percentage point of commercial banks' total deposits (in banking parlance, total demand and time liabilities that include FDs, savings and current accounts) to be free ...

7 Things You Should Look for in a Financial Planner

Recently, a new breed of professionals has emerged who are making financial plans for everyone and are not restricting themselves to investment planning. A financial plan includes planning for your taxes, retirement, kids' education and marriage, buying a home, estate planning or any other goals you may have. This new breed of professionals, known as financial planners, writes a plan for you with all your goals specifically laid down and then provides you with a road map on how to achieve these goals. They always give you a holistic account of all your finances, taking into account all your assets and liabilities, besides taking care of all the risks associated with you and your family and also the assets owned by you. These financial planners will first collect all the data related to your finances and the goals you have for future. These goals may be anything ranging from buying a home, to planning for your child's education to going on a vacation. After this exercise of d...

Market Pre-open session - How It works and Its benefits

   With an intention to reduce volatility in various scrips at the opening of the markets, and to arrive at the ideal opening price of a scrip, the exchanges have introduced a call auction process in the pre-open session from October 18.    The pre-open session is a new innovation to arrive at the ideal opening price of a scrip for the current trading session. The session intends to reduce volatility in the beginning of a day. Under this new arrangement, an exchange will collect orders for the first few minutes of this session. On the basis of orders received, it will arrive at the opening price and match the tradable orders to that price. The remaining orders will be moved to the normal trading session.    The call auction process will be initially introduced for scrips forming part of Nifty and Sensex, and trading in other scrips and F&O contracts will only begin at 9:15 am when normal market trading begins. Orders not will get traded during the order entry period in the pre-...

ASBA Option for Initial Public Offer (IPO)

IPO (initial public offering) applicants, particularly the unsuccessful ones, often have to face a double whammy of sorts. On the one hand they fail to get allotment of shares and on the other, they lose out on the interest during the period their money is locked —that is, if they have opted for the traditional method of issuing cheques for depositing the application money. However, if they choose the ASBA (Application Supported by Blocked Amount) facility, they can circumvent this problem. But do note that you cannot decide to make two applications – one by way of cheque payment and the other through ASBA. If you do so, it could be rejected on the grounds that it constitutes multiple applications. Introduced by Securities and Exchange Board of India ( Sebi ) in 2008, using ASBA has become mandatory for all non-retail investors. Retail investors, though, continue to have the option of choosing between the old and new mechanisms. However, it is in your interest to opt for ASBA. He...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now