Bajaj Allianz has launched a new car insurance program named Drive Smart. Drive Smart is a telematics (long-distance transmission of information). Drive Smart will decide the price of insurance renewal premium based on your driving habits. This is a new way of motor insurance pricing, aims to incentivize good drivers. Currently insurance is priced based on four factors – make, model, location, and year of manufacture. Bajaj Allianz’s Drive Smart will add telematics to the above factors.
If customers opts for the Bajaj Allianz’s Drive Smart package, a device that plugs into the car’s OBD (On-Board Diagnostics) port will be installed. Since the device works on OBD II ports, it will be compatible with every car manufactured after 2010. This OBD device then connects the car to the owner’s smartphone.
This OBD device will provide real-time data to the car owner’s smartphone. The OBD device will detect sudden accelerations, harsh braking, or any major impact, and will alert the owner through the smartphone app.
Additionally, customers will even have an option to request roadside assistance through the app, in case of an accident. The app has various other features like a digital wallet, geo-fencing and vehicle tracking.
The company is also planning to bring out a ‘pay as you go’ insurance plan that will price insurance renewal depending on how frequently a car is driven. This will help those who rarely drive their car, but need to pay the full insurance amount under the current renewal method. The policy is currently available only for cars.