Young Indians want usage-based insurance that rewards safe driving, for their motor vehicles, according to a study by Zuno General Insurance.
Zuno General Insurance, previously known as Edelweiss General Insurance, recently conducted a consumer study named Usage Based Insurance: Decoding Awareness, Perception, and Behavior.
Findings revealed that two factors, namely ‘rewards for safe driving’, and ‘driving score’ were the top two influential factors for individuals to opt for usage-based insurance. A huge 95 per cent respondents said rewarding safe driving would positively influence driving behaviour.
For the study, Zuno General Insurance questioned mobile-savvy millennials and GenZ in eight Indian cities on their understanding and perception of usage-based insurance.
According to the findings, 65 per cent of respondents felt people in India drove safely, while 90 per cent wanted a driving score that indicated how safe they drove. A huge 70 per cent respondents had strong intention to buy usage-based insurance over other insurance options, the study revealed.
In addition, 58 per cent respondents said they were aware of usage-based insurance, while 76 per cent of the respondents strongly believed that getting a driving score would help improve their driving skills.
What is Usage-Based Insurance?
Some auto insurance companies offer usage-based insurance that track the insurer’s driving pattern and habit to generate a driving score. If the driving score is good, that leads to lower insurance premium.
The usage-based insurance is usually powered by an in-vehicle telecommunications devices (telematics) with plug-in devices, or, integrated in original equipment installed by car manufacturers. But Zuno General Insurance says it has adopted a mobile telematics system for the Indian market. The system measures a number of elements, including the kilometres driven, location of the vehicle (Global Positioning System), rapid acceleration, hard braking, hard cornering, and deployment of air bags.
This data is then analysed to calculate the driving range and pattern to arrive at the insurance premium. According to Zuno, usage-based insurance will encourage safe driving practices.
The general insurer further said it went for the new name as part of a brand strategy to resonate with the millennials and GenZ who identify more with the brand’s young, innovative, approachable, digital native and upbeat personality.