Chip in car bonnet to determine insurance premium
Chennai: An electronic chip under the car bonnet that can tell a policyholder's driving pattern so that a car policy can be properly priced is what private general insurer Liberty Videocon General Insurance Company Ltd. is experimenting with, said a top company official.
"An electronic chip costing around Rs.800 will be installed in a car. The telematics will tell the manner in which the car was used - average speed at which it is driven, roads travelled and other data. This will give us data to decide on the premium that needs to be charged," Roopam Asthana, CEO and director at Liberty Videocon General Insurance, told reporters here Friday.
"We are doing this with new cars and have tied up with the dealers of several car makers in Mumbai and Ahmedabad. The device has the facility to trace the car and also immobilise it when needed," Asthana added.
Queried about the admissibility of warranty claims by the car manufacturers as the device is fixed at the dealer end and not at the vehicle factory, he said that aspect has been taken care of by the dealers.