The Indian insurance sector prioritises simplicity by avoiding technical terms making policies more understandable for clients. With the rise of InsurTech and the shift to digital, the industry has become more customer-friendly. Emerging trends in the global car industry will soon influence the Indian car insurance market. Exploring car insurance benefits can help policyholders make informed decisions and maximise coverage advantages. *
Autonomous Cars
In India, the automatic cars on the market are pretty basic compared to the highly automated vehicles that Google and Tesla Inc. are testing. These vehicles strive for complete automation, in which there is no such thing as a “driver” because the car is self-driving. Will the car insurance market be destroyed by such driverless vehicles? Not at all. They could have an impact on the sector by lowering the accident rate. However, comprehensive car insurance also includes coverage against theft and natural disasters. Make sure you carry out the Bajaj Allianz car insurance renewal process on time.
Electric Vehicles
A growing number of stakeholders in the car industry are considering electric cars as a feasible option due to rising fuel prices and environmental concerns. The infrastructure gap that electric cars must overcome includes the scarcity of charging stations. If electric vehicles become the standard in the coming years, how the car insurance industry views them will depend on how much damage a car sustains in an accident. Solid and rechargeable batteries are required for electric cars, and these batteries can potentially catch fire in an accident. Another consideration will be the cost of the car and its parts.
Hired Cars
Every day, driving in major cities becomes more difficult. The daily travel time has increased due to increased traffic and construction-related activities. Due to the lack of adequate roads and parking facilities, more people are considering other ways to get around, like taking taxis. Due to this supply and demand statistic, app-based taxi services like Uber and Ola are growing.
Connected Cars
Telematics can transform any car into a “connected car,” regardless of your driving type. A vehicle can become a “connected car” by installing a telematics device. In this manner, it can monitor driver behaviour, which helps determine the perfect car insurance rate. Better underwriting may result from connected cars. Usage-based car insurance premiums can be assessed based on data recorded about the car, including its speed, regular distance driven, frequency of abrupt stops, fuel consumption, and whether or not safety precautions are taken.
Shared Cars
Although a carpooling option is available for hired cars, community-based carpooling will help reduce traffic and pollution. Can four residents of the same community rent a shared vehicle to meet their daily transportation needs? The corresponding short-term owners may provide short-term insurance for these rented vehicles. Is the insurance sector in India prepared for such extreme measures?
The Indian car insurancemarket cautiously embraces recent developments, conducting test runs and anticipating future changes. The Insurance Regulatory and Development Authority of India (IRDAI) imposes strict regulations, requiring careful consideration of any potential game-changing initiatives before approval due to their far-reaching impact. #
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