Emerging Future of Telematics Insurance in India
Vehicle telematics provides services like vehicle tracking, real-time navigation, roadside help, and now vehicle insurance. Telematics-based insurance provides an opportunity for vehicle insurers to segment customers and pricing based on driving behavior of a customer.
Telematics helps monitor driving performance and recording driver behavior with a telecom device fitted in a car. Taking advantage of this technology, a vehicle fitted with the telematics device can send out, pick up and process information based on driver behavior. This can allow customized insurance policies for cars. Telematics can help cut down premium for vehicle insurance.
What is Telematics?
Telematics is an integration of information technology with telecommunication that enables send, pick and keep information from and to a moving vehicle. A plug-and-play device, or a GPS device
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In the end, premiums can come down for the policyholder substantially, if he continues to use a disciplined driver for his vehicle. The car insurers can make telematics-based insurance a popular one by making it a profitable and helpful way out for the policyholders with tangible benefits compared with the cost incurred. For this, they need to evolve comprehensive policies to protect the sensitive data, its storage and security of the telematics generated data. These steps can help garner confidence of policyholders for opting the telematics-based vehicle insurance.
While telematics rewards disciplined driving, it works as a disincentive for reckless driving. It thus promotes safe driving habits with incentives. In addition, it helps a driver to bring down the frequency of occurring accidents, improve recovery tracking of a stolen vehicle, easier settlement of claims amidst