Page 27 - Insurance Times May 2023

to traditional car insurance policies, which are primarily
based on the model of the vehicle. The Insurance Regulatory
and Development Authority of India (IRDAI) is encouraging
insurers to provide usage-based car insurance policies, which
are expected to grow in popularity in the future. However,
there are barriers to widespread adoption, such as the
requirement for tracking devices in automobiles. Some
businesses also use a plug-in USB to map data.

Clean Energy:
More than 25 Indian companies, including Mahindra &
Mahindra, Volvo, Shell, and clean mobility start-ups, are
requesting government assistance in order to meet a target
of at least 65% of all new vehicle sales being electric by 2030.
individuals being the main buyers. In March, 2023EV retail
The World Business Council for Sustainable Development
sales reached a new monthly record of 140,509 units.
(WBCSD) is leading the charge, and it is the first collective
effort by Indian companies to transition to clean mobility.
Recent Trends in Motor Insurance The announcement comes ahead of a United Nations
Edelweiss General Insurance began operations two years climate change conference, which is expected to spur more
ago, with auto insurance as a primary focus, and has since government commitments to combat global warming.
introduced new age offerings to its customers. Meeting the 2030 target could generate a $200 billion
investment opportunity and reduce India's road transport
SWITCH, a driver-based insurance model in which insurance emissions by 15%. India has some of the most polluted cities
is calculated based on the driver's age and experience, in the world, and the government has encouraged
employs a pay-as-you-use model that allows the customer automakers to switch to EVs in order to clean the air and
to pay the premium only on the days they use the vehicle. reduce costly oil imports. Companies, on the other hand,
This provides significant cost savings as well as convenience. have been slow to adapt due to high EV prices and
Customers can use the insurance company's app to turn on insufficient charging infrastructure. The Indian government
and off their policy coverage based on whether they are is taking steps towards a cleaner and greener transportation
driving that day. Furthermore, while the policy covers system, such as the new battery-swapping policy with
accidental damage when activated, vehicles are covered interoperability standards announced in the Union Budget
against fire and theft throughout the year, even if the policy for 2022. This trend is expected to continue.
is turned off at the time.
Conclusion:
In India, the electric vehicle (EV) insurance industry is seeing
People have gradually begun to consider contactless or zero
steady growth and significant developments. As EV adoption
touch services in which they do not need to make physical
grows, insurers are tailoring policies, collaborating with
contact with a third party. With its pre-inspection benefit,
original equipment manufacturers (OEMs), and mitigating
paperless insurance, and cloud-based service, insurance
risk factors related to batteries and technology. The
companies such as Digit, which has a 2.6% overall market
implementation of improved telematics enables the
share for motor insurance in India as of June 2020, provide
collection of data on driving behaviour, resulting in premium
a zero-touch experience.
democratisation. These advancements are driving the
purchase of EV insurance policies, in addition to promoting
Due to inefficiencies and challenges in the existing
safe driving practises. With the successful culmination of
transportation ecosystem, an increasing number of
these efforts, India's EV insurance sector is poised for
commercial vehicles are opting for telematics solutions.
continued growth, contributing to a cleaner and more
sustainable mode of transportation.
Telematics is a technology that allows for the tracking,
storage, and transfer of driving data. Telematics can be used
in the auto insurance industry to charge personalised References:-
premiums based on a driver's risk profile. This is in contrast Various Sources.
The Insurance Times May 2023 25