[TusharK]

TATA AIG has launched a telematics-based application called AutoSafe for usage based insurance.



According to the company, the AutoSafe mobile app comes with a telematics device that is fitted to the car throughout the policy period. It also works as an anti-theft device as it has a GPS-based tracking facility.

The device has a motion sensor and generates fuel-saving reports. It also monitors hard braking, acceleration and night time driving. It tracks distance traveled by the vehicle, live speed and other driving parameters. Depending on the driving pattern, the app offers bonus kilometers for good driving behaviour.

The AutoSafe app is available on all policies offering personal accident cover of up to Rs. 15 lakh for owner and driver.

Policy holders can choose between 2,500 km, 5,000 km, 7500 km, 10,000 km, 15,000 km and 20,000 km. Beyond that, customers also get an option to top-up kilometres if they have exhausted their kilometres within the policy period. They can choose between 500 km, 1000 km and 1500 km.

Tata AIG's usage based insurance policy includes depreciation reimbursement, daily allowance and no claim bonus protection cover.

Link to Team-BHP News

[hortons15]

I hope this gets adopted by the masses and helps improve the Indian driving style as a whole. Incentivizing civilized driving behavior is a great start for us here. I remember using Progressive's Snapshot in the US back in 2010, a similar device that plugs into your car's OBD port and monitors your driving habits. Within a month of using it, I was able to save over 60% on my insurance rate

But some might say now you have another company tracking your location. Which I'm okay with as long as we are able to save on insurance. Hey at least it's just your insurer. We're anyway being tracked full-time by our phones, apps and personal devices, plus most newer cars have connected tech that relay back information to who-knows-where.

[akash.1318]

Do you guys think that these new usage based insurance policy schemes would in anyway have an impact on the yearly based premium costs? I for one, think the yearly based premium should go down.

[sridharj77]

While this may seem beneficial initially, such driving data can be used by insurers to decline insurance or claims. There needs to be a strong regulatory framework, else the insurance folks won't stop using only for premiums, but sell that data for other purposes.

I work peripherally (software) and some of the business conversations on what we can do with millions of data records, esp when shared across insurers scares me!

[haisaikat]

Originally Posted by sridharj77

While this may seem beneficial initially, such driving data can be used by insurers to decline insurance or claims. There needs to be a strong regulatory framework, else the insurance folks won't stop using only for premiums, but sell that data for other purposes

Spot on, I previously have had bad experience with Tata AIG refusing to renew the policy on account of previous year claims made and as it seems other BHPians have had similar experience with them https://www.team-bhp.com/forum/india...nt-claims.html (Tata-AIG refuses to renew my insurance policy, due to accident claims!)

This telematics approach may be a step forward to strengthen what they practice but a regulation should be in place to control the capture and use of this data clubbed with personal preference of individuals. While I condemn rash driving and irresponsible road manners but I strongly believe that defeating the purpose of what Insurance stands for will never be accepted by the consumers in the longer run.