Drive smart with Telematics

Sourabh Chatterjee

With technology fuelling a lot of changes around us, we are now witnessing motor insurance covers that not only pay for our claims, but also assist us to improve our driving behaviour. Here's everything that you need to know about telematics - the technology behind this transformation.

n Technically put, telematics is a conjunction of a GPS system with your vehicle's on-board diagnostic system. By putting these two together, complete details of a car can be mapped, from its location to its speed to even its engine health.

n This is done by fitting a dongle like device to your car's OBD II port, which then communicates all the relevant data to the insurer over a mobile network. This data is then used by the insurer to interpret your driving behaviour as well as your car's diagnostic details.

n The data so interpreted is then communicated to you via your smartphone. Usually the insurance companies integrate these features to the company-specific app that they have developed for their customers. After purchasing a telematics- based policy, the customers are required to enter their policy details in the app, on the basis of which, the insurer syncs their device to the app. This is a must to avail the features of this facility through one's smartphone.

n Through the App you will be able to get a complete connected experience where you will be notified on your car's engine and battery health, and shall receive a detailed driving summary where you would be advised on better driving techniques. Even stats on optimal utilisation of the fuel would be shared with you.

n There are additional features such as alerts on over speeding, rash driving etc. along with notifications on the approaching renewal dates of your insurance, PUC, car servicing etc.

You can even Geo-Fence your car i.e. define geographical boundaries for your vehicle. If the vehicle moves out of these set boundaries, you will instantly be notified about the same. This feature has several uses, esp. in case of chauffer- driven cars, where you can monitor your car's movement and hence ensure the safety of your loved ones using it.

n Till date the insurance companies used static parameters such as vehicle make, model, region of registration etc. to compute a vehicle's motor insurance premium. But with this technology, individuals can avail better pricing and renewal discounts basis the real time feedback of his/her driving behaviour.

n This means that good drivers will no longer have to compensate for the bad driving behaviour of their fellow motor car owners. They can avail better discounts and lower premiums basis their good driving behaviour.

n Though telematics as a concept is new to India, there are insurance companies that have clubbed this technology with their motor insurance offerings. Anyone with a smartphone and a car can avail the facilities of this motor insurance and get benefitted for their good driving skills.

Telematics as a technology is being used for years in Formula 1 races to track the movements of all the race participants. Insurers, now equipped with this technology, are offering their customers 24X7 connected experience. Not only is this going to make the Indian roads safer, but is also going to promise you safety, security, convenience and a lot of savings.

The writer is Head IT - Digital Marketing, Direct Marketing and Web Sales, Bajaj Allianz General Insurance Company. The views expressed in this article are his own