Bajaj Allianz taps into telematics for car insurance

This is being offered to look into the driving habits and incentivise customers

Bajaj Allianz General Insurance has launched a telematics offering, a first in the sector, to look into driving habits and to incentivise customers.

The offering, called Drive Smart, is a device that can be fitted into a car and will provide real-time feedback on driving behaviour. Based on the data collected, insurers can provide discounts in motor vehicle insurance premium.

Tapan Singhel, managing director and chief executive officer, Bajaj Allianz General Insurance, said this would help incentivise those with good driving behaviour. Motor insurance premiums are fixed on an annual basis and discounts will be offered only after data is collected over a 12-month period.

This device will be given free to customers. A customer can opt for this service while buying the company’s motor insurance policy or while renewing their policy, along with add-on covers. Once the device is plugged-in, real-time feedback is provided on mobile phones with the help of an application.

Drive Smart will have features such as speeding alerts, 24/7 roadside assistance, real-time location sharing, towing alerts and a weekly driving summary, among others. Geo-fence alerts would also be given if a customer’s car crosses a defined geographical boundary.