Insurers eye windfall from proposed satellite-based toll collection system

Lack of regulatory clarity complicates matters on third-party data-sharing

The National Highways Authority of India’s (NHAI) plan to switch to satellite-based toll collection system will not just eliminate the physical toll booths and the road congestion, but will also offer a significant opportunity to insurance companies to customise motor vehicle insurance based on real-time location data, according to insurers.

On Tuesday, the NHAI conducted a workshop on Global Navigation Satellite System (GNSS), for which it had floated tenders earlier this month.

According to preliminary deliberations in the run-up to the workshop, the authority plans to amend central motor vehicle rules to make fitting of an on-board unit (OBU)