Mr. Roopam Asthana, Chief Executive Officer and Director of Liberty Videocon, announced the implementation of new technology “telematics” which will monitor the behavior of the driver. This technology will assess the risk of the driver having the accident having an accident and charge premium accordingly. “Telematics”, which is a box like piece of equipment, will be fitted into the car.
He further stated that the intention of introducing the ‘telematic auto insurance’ is that a driver’s behavior is monitored directly while driving and this information is sent to the insurance company. Based on this information, insurance company will identify the chances that a driver has for accident and charge premium accordingly. For eg. A driver who indulges in rash driving will be charged higher premium against the driver who drives carefully.
Prior to this technology, insurance premium were charged on the basis of age, sex and location, assessing the risk of a driver having an accident. With the introduction of this new concept there will be a complete revolution in the whole motor insurance
This technology will be implemented after the company ties up with the dealers, manufacturers and technology providers and will be experimented in Mumbai and Ahmedabad on 1,000 cars.
Liberty Videocon General Insurance Company, which started its operations in May 2012, is a joint venture between Videocon Industries Limited and US based Liberty Mutual Insurance Group.