Car insurance policy Infotoday

Outlook For Car Insurance Buyer in 2022

February 24, 2022

Like any other industry, the car insurance field is also constantly evolving. With the latest fast-moving innovation and technology and ever-increasing data sharing, the car insurance industry is on the verge of adapting to the latest trends and changes in the year 2022. The car insurance industry has shifted and gone through a few changes in the last two years. Several providers are offering more online tools since policyholders couldn’t do business in person over the past two years. Many large insurance companies were already offering online platforms pre-pandemic, but more providers are beginning to add features such as virtual claims processing to make the claim process easier.

The following aspects will be deciding factors in the car insurance industry for the year 2022:

Impacts of Emerging Technologies on Car Insurance:

Technological advancement in car manufacturing not only changes the driving experience but also influences car insurance. Accessories like airbags, seat belts, rear cameras, and distance sensors are making the drive safer than it was ever before. Emerging technologies, such as stability control systems and sensing systems that extend beyond the car, will be helpful to drivers in avoiding collisions and accidents and thus reducing the chances of life-threatening casualties. Other technologies such as Global Positioning Systems (GPS), anti-theft devices and tracking devices will be promoted to reduce theft. In addition, an on-vehicle Event Data Recorder (EDR) is an emerging technology with the potential to enhance road safety. These technologies will help keep cars safe, which in turn will be good for drivers since they won’t have to pay high insurance premiums.

Digitalisation helping new buyers:

Digitalisation and AI (Artificial intelligence) are rapidly taking over manual systems and processes. Digitalisation will help create a less time consuming and fully automated experience to meet the high-speed demands of modern consumers. From fast claim processing, identifying risk of fraud, identifying outlier claims, interactive chatbots, giving customers a personalised experience, digitalisation and automation will help the car insurance industry reach new heights.

Personalised customer care:

Taking care of the customer is the most crucial part of any industry. A modern-day consumer will get more personalised service from their insurance provider. With new emerging technologies and tools made available by insurers, the new-age car insurance buyer will be able to compare various policies easily, get personal quotes, expert advice, tailor-made plans, and insurance products priced according to their own needs and behaviours. With the aid of AI chatbots and automated texting, consumers will get answers to their problems right away, which will make all the difference in the insurance game.

Enhancing customer experience with analytics:

To build long-lasting relations with customers, it is crucial that customers feel comfortable using digital means of business. That is where the data collection and Integrated analysis of that data come in handy. In future the digitisation of data will allow the insurers to perform the transaction and automate claim processes with little to no time to help the customers – for example, by assisting a customer get ahead on the claim process shortly after an unfortunate incident such as an accident or stolen vehicle, with available data from the smartphone, health tracking devices, GPS, security systems etc., insurers will get a head start on their response to the customer.

The future of car insurance industry is bright, and it will be more consumer-driven. The new technologies will emerge and make it easier for consumers to get car insurance of their choice and help the insurers to provide their consumers with world-class insurance products and services. But in all that, buying a car insurance policy and securing yourself and your vehicle against any unforeseen event will always be the crucial element.

This article is authored by Suresh Sankaranarayanan, Sr. Executive Vice President & Chief Technology Officer at Kotak General Insurance, and views expressed in this article are the author’s personal views.

Finance

Everything you need to know about Electric Car Insurance

December 17, 2021

Over the last few years, we have seen significant advancements in the auto industry, especially in the category of Electric Vehicles (EVs). An electric car is a car whose engine is powered by rechargeable batteries instead of fuel- petrol or diesel. The sales and demand for Electric Vehicles (EVs) are slowly picking up in the Indian auto market with a genuine surge in the number of people shifting from conventional cars (petrol and diesel) towards EVs.

With global warming and climate change threatening the environment around us, switching to electric vehicles can be seen as the best decision you can make for yourself and generations to come. EVs are not just an eco-friendly alternative to petrol and diesel vehicles but are also cheaper to run in the long term.

Though the EV market is still growing in India, prospective buyers may have concerns about insuring the electric car. There are only a handful of insurance providers offering vehicle insurance for electric cars. Nevertheless, the idea of providing a safety cover to the policyholder remains similar to the car insurance policy for petrol and diesel vehicles.

EVs are manufactured and equipped with cutting-edge technology such as high-capacity batteries, sophisticated car parts, and more. Therefore, in the event of an accident, your car may suffer heavy damages. High car repairing expenses can put a significant strain on your financial budget, especially in the case of an electric vehicle. Therefore, a comprehensive car insurance policy is needed to take care of the repairs, whether the damage to your car is due to your mistake or someone else’s. It also seems the most logical investment any electric car owner can make.

The electric car insurance policy offers financial protection to your car against damages such as accidents, natural calamities, fire, theft of the insured vehicle, and third-party injuries or damages to their property. Choosing the right cover for your electric car helps you avoid out-of-pocket expenses.

Along with all the advantages, it is also compulsory to have at least a third-party liability insurance policy according to the Motor Vehicles (Amendment) act 2019. The Motor Vehicle Act dictates the laws associated with motor vehicles in the country. All vehicles must have valid insurance to drive legally on public roads, which also includes electric cars.

Another reason the electric car/motor insurance market will see a rise in the upcoming FY2022 is because of the various types of compensations provided by the authorities on insurance for electric vehicles. For instance, IRDAI, the insurance regulator, has mandated the incentivisation for electric car owners in order to work towards a goal of a sustainable environment by making the third-party liability insurance for private electric cars in India 15% lower than that of general private cars of similar categories, effective from June 16th, 2019. Similarly, certain state governments have extended tax incentives on the registration of hybrid and electric cars in India.

It is crucial that no matter which car you opt for, be it electric, petrol, or diesel variant, you must make sure that you insure it with an optimum car insurance policy.

This article is authored by Pulak Sarmah, Head of Marketing at Kotak General Insurance, and views expressed in this article are the author’s personal views