From health profile-based pricing, use of wearable devices to pay as you drive to usage-based motor insurance as well as an AI driven automotive claims and collision estimation system, the Insurance Regulatory and Development Authority of India (IRDAI) has approved 33 product proposals of insurers under a regulatory sandbox approach.
The products can hit the market as early as next month as the approval is time-bound for six months from February 1. IRDAI had invited proposals in September and received 173. It had also set up an Evaluation Committee to evaluate the proposals related to health and motor insurance and from intermediaries. The objective behind promoting the regulatory sandbox route is to recognise innovative ideas to foster growth in insurance sector, in a way that provides flexibility in dealing with regulatory requirements and at the same time ensuring policyholder protection, according to the regulator. Among health insurers proposals that received approval were a comprehensive wellness programme with wearable device, short term and need-based insurance, and an app monitored diabetes mellitus wellness programme. In the non-life segment, 8 proposals pertain to a pay as you drive under the private car policy own damage segment. Two proposals of Bajaj Allianz General Insurance received approval Pay as you Consume for motor insurance and Co-pay under health insurance.
MD and CEO Tapan Singhel said premium for the Own Damage component was currently based on the age, make and the vehicle model. Pay as you consume will charge premium based on the kilometres covered by the insured or the period of time they intend to drive the car. This will encourage more people to opt for Motor OD insurance since a majority of the vehicles only have Third Party Liability policy as mandated by law.
Under the Co-pay model, he said the insurer was associating with tech enabled healthcare platform GOQii.
Based on the engagement level of the insured on the platform, the percentage of co-pay would be decided.
Edelweiss General Insurance has got approval for an app-based multi-vehicle, usage-based floater policy for Motor Own Damage. CEO and Executive Director Shanai Ghosh said the product allows you to cover any damage to your vehicles via a floater policy. The policy will cover all risk for all vehicles and the cover can be switched on/off as per the requirement of the customer with the flexibility of adding and deleting vehicles as required. The policy is a floater for multiple vehicles and usage-based.
What this means is that there will be premium savings for the customer as compared to having multiple policies for their vehicles. As per the sandbox guidelines the product can be launched only as a pilot and the period for launch and completion is from February 1 to July 31.
SBI General Insurance Head Underwriting and Reinsurance Subramanyam Brahmajosyula said the Shagun proposal of the company that has got approval wants to promote gifting of insurance policies in lieu of cash (Shagun) given on auspicious occasions.