More than two decades after the Indian insurance industry was opened up, the sectoral regulator has allowed the non-life insurers to offer innovative add-on covers on motor insurance policies.
The Insurance Regulatory and Development Authority of India (IRDAI) on Wednesday said non-life insurers can offer the following technology enabled concepts on the motor insurance policies covering the vehicles.
The new covers on the own damage or vehicle damage portion are: pay as you drive, pay how you drive and floater covers for two wheelers and private cars owned by the same individual.
According to IRDAI, vehicle insurance is constantly evolving.
The advent of technology has created a relentless pace for the insurance fraternity to rise up to interesting yet challenging demands of the millennials. The general insurance sector needs to keep pace with and adapt to the changing needs of the policyholders, the IRDAI said.
The above mentioned covers will be provided as add-ons to the basic policy of motor own damage portion.