You can, in the coming days, get an option of having a single policy (motor insurance) for multiple vehicles by having different sub-limits for each vehicle.

This “floater policy” option for motor insurance is one of the five ICICI Lombard proposals that have got IRDAI nod under the sandbox approach introduced by the insurance regulator, Sanjay Datta, Chief-underwriting, claims and reinsurance, ICICI Lombard General Insurance, told BusinessLine.

The current regulations do not allow “floater” for motor policy, but now with this sandbox approach this segment may be opened up in India.

In all, ICICI Lombard had made 32 proposals under the IRDAI sandbox programme and received approval for five till date.

The other four proposals that have got IRDAI nod are — App Monitored Diabetes Mellitus (Diabetes); App monitored Dyslipidemia (Cholesterol); Pay As You Use (PAYU) policies for Private Car; and Pay How You Use (PHYU) policies for private car .

This sandbox initiative could help bring the element of risk management in rating process, he said. Datta said that the sandbox enables insurance firms to ideate, experiment and innovate with financial products.

Of the 173 proposals it had received, the regulator approved 33. ICICI Lombard has bagged the maximum approvals, with five schemes. Of the five, two are health and the rest are motor schemes.

Datta also said that it is not necessary these five proposed products will hit the market at the end of the six months. An insurer can decide against its introduction even after the end of the six months.

MOTOR FLOATER

For the ‘floater’ policy, Datta said that an app-based interface will help link the multiple vehicles together and offer coverage. With this “floater” policy option, customers will be able to optimise their sum insured since they will not be driving both vehicles at the same time. This “floater” concept is currently available in health policies for families to buy a single sum insured for their family, Datta said.

HEALTH INSURANCE PRODUCTS

For the diabetes offering, customers will be offered a Disease Management Program (DMP), including nutritionist counselling for diabetic diet. “We will be rewarding positive behaviour, for example, a customer who exhibits regular exercise and well-managed sugar, cholesterol, weight and hypertension levels will be given wellness points. These wellness points earned can be redeemed for availing discount on purchasing health insurance policy,” he said.

PAYU FOR PRIVATE CARS

With this programme, Datta said that the customer will have an option to pay their premiums based on the kilometres that they are driving.

Today, most insurers charge the customer the own damage premium basis the vehicle make, model, age, location and the no-claim bonus applicable on the policy. With this program, it will also include vehicle usage as a part of the premium computation.

Also, an app will monitor their driving behaviour and reward the customer for safe driving practices. It will also notify the customer when they are driving fast and will show the location of the vehicle using GPS technology.

PAY HOW YOU USE (PHYU)

With this programme, the customer will have an option to pay their premiums based on how they are driving. Today, most insurers charge the customer the own damage premium basis the vehicle make, model, age, location and the no-claim bonus applicable on the policy. With this programme, it will also monitor driving behaviour (rash accelerations, hard braking, speed, distance travelled, time of the day) as a part of the premium computation.

An app will be used to monitor driving behaviour and reward the customer for safe driving practices.