Insurance: Now you can buy a single policy for multiple cars

Usage-based premiums will soon become a reality in the motor insurance industry, with companies offering the single owner of multiple vehicles the option to allocate coverage in line with the anticipated use of each car. So, for the first time, customers will have the option to buy a single policy for multiple vehicles, with different sub-limits for each car. 
As the The Economic Times reports, ICICI Lombard will be launching a “floater” policy option that will allow customers to optimise their sum insured, since they will not be driving two vehicles at the same time. ICICI Lombard’s ‘single owner, multiple vehicle’ floater is an app-based interface that will help link multiple vehicles together and offer coverage. This “floater” concept is currently available in health policies for families to buy a single sum insured for members covered. 
A prototype is valid for six months and companies can launch it if it works after this period. Insurers are launching usage-based motor insurance where the customer will have the option to pay their premiums on the basis of their driving choices. 
Today, most insurers charge customers’ own- damage premium basis the vehicle make, model, age, location and the no-claim bonus applicable on the policy. The new programme will also factor in driving behaviour — rash accelerations, hard braking, speed, distance travelled, or the time of the day — to compute premiums. An app will be used to monitor driving behaviour and reward the customer for safe driving practices. Based on their driving behaviour, customers will be able to see their scores, which will start reflecting in their own damage premium at renewal. Customers will be able to opt for this programme for a period of less than a year. 
“The ‘pay as you consume’ model will help us charge premiums based on kilometres utilised by the insured, or the amount of time they intend to drive the car,” said Tapan Singhel, CEO, Bajaj Allianz General Insurance. 
“This will encourage more people to opt for Motor OD insurance since a majority of the vehicles only have Third Party Liability policy as mandated by law.” 
Insurers plan to monitor and manage health risks by launching products under sandbox. Insurers have got approvals for products to monitor health. While ICICI Lombard is going to manage diabetes and cholesterol-related coverage, Bajaj Allianz General Insurance is coming up with a ‘co-pay’ under health insurance where it has tied up with GOQii. Here, based on the engagement level of policyholder on the health platform offered by GOQii, the percentage of their copay will be decided. 



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