New Delhi: Leading private non-life insurer Bharti AXA General Insurance on Tuesday said it has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) for its two insurance proposals under the regulatory Sandbox project.
The company said its two proposed products -- Usage-based Motor Insurance in the non-life category and Short term Health Insurance in the health segment -- have been shortlisted by the regulator for its Sandbox project.
Notably, the IRDAI has selected only 33 out of 173 applications under health, non-life and distribution segments for the Sandbox project, which allows insurers and technology companies to collaboratively experiment with new products along with unique customer proposition on a live audience under the supervision of the regulator.
Sanjeev Srinivasan, Managing Director and CEO, Bharti AXA General Insurance said: "As customers' needs are ever-evolving, there has always been a demand for flexible and 'Do It Yourself' coverages from partners and customers alike. We are cognizant of this and always put their needs at the forefront of our innovations."
"Our proposed products for the Sandbox project cater to this requirement, and they are recent examples of our commitment towards customer centricity. With the launch of Sandbox, we would like to congratulate the IRDAI for the commendable momentum demonstrated towards this initiative.
"It is a positive signal for the transformational phase for the domestic insurance industry and an exciting time for insurers, customers and partners," said Srinivasan.
The proposed 'Usage-based Motor Insurance' product charges premium based on pre-declared or promised vehicle usage distance along with the standard parameters, thus benefiting those who drive less. Currently, the product available in the marketplace, does not allow any personalisation to customers based on their driving pattern. A customer who is driving 20,000 kms a year versus the one who is driving only 5,000 kms a year is offered the same product.
"Usage-based Motor Insurance is based on the 'pay as you go' model, which is differentiated from the traditional motor insurance. Through this innovative offering, we expect increased penetration of motor insurance by covering the customers who drive less and generally may not have a preference for own damage covers," said Srinivasan.
This is useful for people who commute using cabs or public transport on day-to-day basis and rarely use their personal vehicle. It would also benefit the customers who frequently travel beyond city limits and hence would seldom use their vehicles.