Are you a car owner? If yes, then think about how it will look like if the amount of your car insurance will be decided on your driving behavior? To put it simply, you may end up paying more if your car marks you as a bad driver!
The idea is limited to the idea, but soon it will be implemented in metropolitan cities where number of cars is comparatively high than in other parts of the country. So, the reality is not far away. Internet Of Things (IoT) may work hand in hand with Usage Based Insurance (UBI) to roll out the automobile insurance that monitors driving behavior and pattern with the help of IoT embedded sensor devices. That device will be mounted inside of your vehicle, and 24/7 monitor your driving scenario.
Lux Rao, the technology speaker, and NTT India director say, UBI is going to play a vital role in changing the insurance industry while speaking about ‘Top disruptive trends and future possibilities for IoT in India.’ The whole discussion took place at the IoT Innovation Conclave organized in Bangalore.
UBI platform is operated by the collected data through telematics devices. These devices monitor and record al behavioral patterns like distance traveled, average speed maintained, any case of harsh accelerations, condition of different parts of the vehicle, replacement suggestion, internal and external damages, fast driving instances, any instance of deployment of airbags, etc.
In the emergence of connected car devices, Rao discussed that a premium sedan has more than 70 sensors that are sending important data to the cloud on a 24/7 basis. The insurance companies can use this data to determine the driving pattern of a particular vehicle. On the basis of that they can estimate how much premium should be collected from the vehicle owner. If someone drives more kilometers by pushing the accelerator real hard, might be asking paying more premium due to risky driving behavior than someone who drives shorter distance following standard driving rules. Depending on the driving pattern, vehicle owners can be tagged as a ‘safe driver’; they can be also be given a discount on their consistent safe driving behavior.
He further added, by the end of 2020, the number of IoT device users will approach 50 billion, which is currently about 27 billion.
The role of the automobile sector will become prominent as the government puts special emphasis on electric vehicles (EVs). By the end of 2022 70% of the commercial vehicle will be converted to EVs, as suggested by the government. EVs are fully connected with sensors and completely driven by IoT embedded sensors. These devices will help us track the driving behavior of the vehicle which may help in addressing range-anxiety.
The settings of electric scooters can be controlled through IoT devices; it can also suggest the vehicle’s condition to help in predictive diagnostics.
The research wing ministry of road transport and highway transport says most of the road accidents caused by human errors, and in some cases, it happens due to poor road conditions like portholes etc. According to the 2018 report most of the traffic violation results from lack of lane discipline and over speeding of the vehicles that leads to road accidents, the same report suggests in 2018 more than 90,000 people died in all over India overspending among which nearly 8000 dues to lane indiscipline. The IoT embedded sensors will reduce the chances of accidents by controlling over-speed and alerting the vehicle owner about the condition of the vehicle (if any).
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