Tech mahindra
Tech mahindra

On the go insurance made easy – it’s personalised too

Posted by: Team TechMahindra On August 22, 2014 10:34 AM facebook linked in twitter

Insurance – whether it’s life, health or automobile - has always put us in a dilemma. We have often wondered why we have to pay so much when we can do with a little less, if the money we are paying is worth the insurance cover provided and so on. Take a deep breath, sit back and relax as you can now decide yourself how much to pay for your automobile insurance. Thanks to Usage-Based Insurance (UBI) or what is better known as pay as you drive (PAYD).

There are many companies offering UBI which gives you the flexibility of paying insurance premiums basis your actual driving habits rather than based on traditional rating methods. Tech Mahindra’s UBI (Usage Based Insurance) solution offers insurance premiums based on the actual usage patterns of the consumer, such as the actual miles you drive, how often you drive, and other habits like how often you brake hard. A BIG Data based solution, UBI provides accurate information based on real time physical world data. It employs in-vehicle telematics to accurately profile driver behaviour to align the insurance premiums and control the claim costs.

So what is UBI and how does it work? It’s a type of automobile insurance in which the costs/premium to be paid by the consumer are dependent upon type of vehicle used, measured against time, distance, behaviour and place. The information on how you drive, how good or bad a driver are you basis your driving habits are transmitted to the insurance company via a small device that is placed on the car to record how fast you drive, where you drive, how frequently you drive and such habits as braking and turning. This information is then used to determine how much you should pay for insurance. But the distinguishing point here is that – you decide whether or not you want to have this monitoring device in your car. It is voluntary.

The main USP’s of Tech Mahindra’s UBI are global reach, availability on all technologies (GSM, CDMA and GPRS), minimum entry barriers and upfront investments by the insurance company. The potential benefits include reduction in Insurance company's claim costs by up to 30% as also your premium is reduced by up to 50%. This creates a win-win situation for both the insurer and the insured. The benefits of UBI technology include:

1. Better alignment of insurance costs to actual risk
2. Social and environmental benefits from more responsible driving
3. Potential cost savings for responsible customers
4. It enables other vehicle to infrastructure solutions including drive-through payments, emergency road assistance and more
5. High-risk drivers pay more per use, hence, they have higher incentive to change driving behaviour
6. Continuous tracking of vehicle location enhances both personal security and vehicle security
7. GPS technology could be used to trace the vehicle location following an accident, breakdown or theft
8. The same GPS technology can often be used to provide other (non-insurance) benefits to consumers, like satellite navigation

Tags: Connected Platforms & Solution
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