Private insurer Bharti AXA General Insurance has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) for 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 short-listed by the regulator. It may be recalled that IRDAI has selected just 33 of the 173 applications under the health, non-life and distribution segments for the sandbox project, which allows insurance and technology companies to collaboratively experiment with new products on a live audience under the supervision of the regulator.
“As customers’ needs are ever-evolving, there has always been a demand for flexible and ‘do-it-yourself’ coverages from partners and customers alike,” said Sanjeev Srinivasan, MD and CEO, Bharti AXA General Insurance. “We, at Bharti AXA General Insurance, 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 these are recent examples of our commitment towards customer-centricity.”
The proposed Usage-based Motor Insurance product charges premiums based on pre-declared or promised vehicle usage distance along with the standard parameters, thus benefiting those who drive less. The products currently available in the market do not allow any personalisation based on driving patterns. A customer who drives 20,000 km a year and one who drives just 5,000 km are offered the same product.
“Usage-based Motor Insurance is based on the ‘pay-as-you-go’ model. 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 mostly take cabs or public transport and rarely use their personal vehicles. It will also benefit customers who frequently travel beyond city limits and hence seldom use their vehicles.
Customisable product
The proposed Short-term Health Insurance product will cover customisable waiting periods, and includes both indemnity and benefit. Srinivasan said customers may choose a health insurance product for a short period during the emergence of specific diseases. Such covers will also make health insurance accessible to a wider audience, he added.
The insurance sandbox project has been launched mainly to help IRDAI gauge and measure real-life acceptance of new customer propositions before giving them regulatory nod for commercial launch. It also has the potential to facilitate innovation and experiment with ideas.