Mileage Protection

A regulatory push is creating a flurry of usage-based motor insurance policies in India

- TEENA JAIN KAUSHAL

THERE IS GOOD NEWS for car owners who do not drive a lot but have to keep their vehicles insured nonetheless. Insurers are increasingly starting to use telematics data from vehicles to determine the premium rates of motor-vehicle insurance policies based on a policyholder's risk exposure, and the distance driven. The 'pay as you drive motor insurance policies charges you a premium based on the usage of the car, which translates into a lower premium payment when the vehicle is driven less, and higher when it is driven more.