Car Insurance policies in India are a big hassle to some of the car owners. Some people still struggle with the terms like NCB, IDV etc and the others simply find paying the insurance premium as a burden because they drive their cars very less. As per the current norms, a third party cover is mandatory for all the vehicles plying on the Indian road. Other insurance policies include covers for the car, driver, passengers and so on. Have you ever thought these insurance policies to be unfair? Want a video explanation to this topic? Scroll down and watch the video!
Many car owners around the world find car insurance policies as an extra expense because they don’t use their cars much or own multiple cars. Imagine a person who drives his car only 5000 kms a year has to pay the same insurance premium as a person who drives the same car for 1,00,000 kms! Unfair isn’t it? The Insurance Regulatory and Development Authority of India received about 173 applications from insurance companies under the ‘Sandbox’ projects. Many insurance companies came up with innovational ideas for new types of insurance policies which could solve the problems that car owners currently face. 23 applications got accepted and some major brands like Bharti AXA and ICICI Lombard have started working on these in the testing phase.
Pay As You Use (PAYU)
Among all the new insurance policies, this one would be a fair alternative for those who drive their car occasionally. This policy divides the user base into groups based on how much they drive their cars. 3-4 slabs have been laid down where you can select the number of km you expect yourself to drive in a year. Depending upon your needs, you can select your slab and obviously a person who drives less will have to pay less.
What if you exhaust your selected limit somehow? You can anytime upgrade to the next slot by getting in touch with your insurance provider! Amazing isn’t it?
Pay How You Drive
How’s your driving style? No one would say they drive bad but sadly some of us do. Tailgating, frequent lane changing, overspeeding and many more things cause major road accidents which then lead to insurance claims. This time, the insurance companies have come up with insurance policies that will reward the good drivers! Yes, if you drive safely and keep your car in good condition, you will be eligible for an additional discount on your insurance premium. Those who drive bad have more chances of having an accident therefore, will be liable to pay more premium than those who drive safe.
Single Owner Multiple Vehicles
Its 2020 and there are many people who have got multiple cars at their home. Paying the insurance premium for multiple cars is always painful because in most cases one of the cars is kept unused for long. This time under the insurance sandbox, the single owner multiple vehicles option is also there which will allow you to get a single policy for multiple cars that you own! If you own two cars, you won’t have to pay separately for both of them but this policy will have both of them covered! The calculations to be done for the premium are still not official but still, the scheme seems appealing to many!
The new insurance plans definitely come with a lot of challenges. I have figured out some of the challenges in this video that I think to accompany these new insurance policies for a country like India. While the UK and the US have been following this for a long time, will this workout in India? Check this video out!