Premiums may go down for good drivers, low car usage

A device can be installed for insurer to get real-time data tracking driving behaviour

The insurance regulator wants to reward car owners with good driving skills. It has come up with a discussion paper on lowering premiums of those auto insurance customers who display good driving behaviour, don’t use their car often or have limited usage each day.

If the Insurance Regulatory and Development Authority of India (Irdai) implements this (the discussion paper has been put up on the website currently), a person would need to fit an on-board diagnostic (OBD) device that tracks driving behaviour, car health and usage. “The data will be relayed to your insurer in real time. Using the information,