The Insurance Regulatory & Development Authority of India (IRDA), last week, gave its nod for adjusting insurance premiums on the basis of driving behaviour.
Hailing the move, Akhillesh Srivastava of World Economic Forum New Delhi Liaison Office said, “My theory of change has been to reward good drivers rather than wasting energy, time and money in capturing & penalising bad drivers. In the road safety 2.0 pilot programme, we are tracking and analysing driving behaviour using Internet of things (IoT) and converting those data into Safe Driving Scores. It’s a real game changer for road safety in India as dependency of the third party funds for road safety will drastically reduce and create a self sustainable ecosystem.”
A good Driving score translates into better driving skill, more rebate in insurance premium, lesser accidents, lesser payout for insurance companies. Given the exponential rise in road accidents in India, this move by IRDA can truly make a difference.
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