HomeEODB NewsThe proposed new insurance model shifts from "Punishment oriented" to "Rewarding oriented".

The proposed new insurance model shifts from “Punishment oriented” to “Rewarding oriented”.

GAME CHANGER: The proposed new insurance model to pay premiums “as you drive” and “how you drive” is a real game-changer.

It’s a win-win scenario for insurance companies and the drivers.

These are the first few things WEF-led Road Safety 2.0 initiative has identified and been pursuing for a long time. We started capturing “Safe Driving Score” and tried incentives for these scores.

It focuses on incentivising the good drivers with “rewards/rebates” for safe driving by tracking & converting their subjective driving behaviour into easily understandable objective Scores using next-gen technology solutions.

This changes the basic narrative from “Punishment oriented ” to “Rewarding oriented”! A transformative positive change in the mindset of drivers.

You can’t solve a multifaceted and complex social problem like road safety only with the punishment mindset.

We had multiple rounds of meetings with IRDA and gave documentary evidence backed by data from our pilot projects to support how “you drive” i.e. “Driver’s Behaviour” is measurable and how rewarding is effective in reducing accidents by over 90%.

Let us tell you how it works:

. Pay as you drive: It will allow the car owner to pay for the insurance as per the usage.

. Pay how you drive: The premium amount depends on the driving behaviour of the car owner.

. Floater policy: It will allow individuals who own more than one vehicle to opt for a single motor insurance policy to cover all their vehicles.

Thanks to the new chairman of IRDA, Mr Debasis Panda, for his pragmatic thinking.

This is a big boost to self-motivated drivers to improve their behaviour and improve road safety.

Congratulations to all the road safety pioneers.

Authored by Akhilesh Srivastava
NHEV Knowledge Group Member | World Economic Forum | IT Advisor to Government of Uttarakhand

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular