Some time ago IRDA had invited applications for the regulatory Sandbox. A Sandbox is a workspace through which the insurance companies can test launch innovative financial products. Out of 173 proposals receivd by IRDA, 33 has been approved by IRDA.
IRDA’s Sandbox Project has provided the insurance industry with the flexibility to explore new products and services that suit today’s technology and data driven world.
The approvals relate to health profile-based pricing, use of wearable devices in for health products & pay as you drive, usage-based motor insurance & Floater motor insurance policy to cover multiple vehicle in one policy.
In addition the “Audatex soultions”, an intermediary has been granted approval to test launch well as an AI driven automotive claims and collision estimation system.
- Motor Floater policy: The policy would cover multiple vehicles in one, which saves time and any hassle involved in buying multiple policies for multiple vehicles.“Premiums will be charged as per usage. This is an innovative app-based policy that would allow policyholders to cover any damage to their vehicles based on usage. This simply means that the customer has the flexibility of adding and deleting vehicles as required on the app. The insurance cover can be switched on or off as per the requirement of the customer.
This is sum insured based ‘floater policy’ would cover all the vehicles owned by a customer under one policy. It will be defined basis value of the highest sum insured vehicle and the customer will have the option to add vehicles even at a later stage.
By choosing this policy, one shall entail benefits like premium leverage as multiple policies are not required to be bought and sum insured is optimized. Other benefits include change of details for all policies at one go and continuous coverage. “All the benefits including no-claim bonus, cancellation and so on shall be made available to a customer like any typical motor insurance own damage product both at the time of entry and exit,
2. Pay as you use: The premium for the Own Damage component was currently based on the age, make and the vehicle model. ‘ Pay as you consume’ will charge premium based on the kilo meters covered by the insured or the period of time they intend to drive the car. This may encourage more people to opt for Motor OD insurance since a majority of the vehicles only have Third Party Liability policy as mandated by law.
“The emerging era of shared mobility, makes it a very relevant product, for vehicle owners today where they can pay as per the usage of the vehicle and/or driving behavior
When it comes to claim settlement, the application claims to be settled through live video, uploaded either by you or your garage.
- On-line claim settlement: An intermediary “ audatex has been granted to approval to test launch the online motor claim estimation & AI based claim settlement products which may revolutionise the claim settlement process of the insurers with immense benefits to the policy holders.
Name of the applicant company & approved proposal under the regulatory sand box is given here under:
| S.No | Application ID | Applicant Name | Proposal Name | |
| HEALTH | ||||
| 1 | 240 | Max Bupa Health Insurance Co Ltd | Friend Assurance | |
| 2 | 238 | Max Bupa Health Insurance Co Ltd | Health profile based pricing | |
| 3 | 239 | Max Bupa Health Insurance Co Ltd | Wearable Fitness Tracker | |
| 4 | 114 | Star Health Insurance Co Ltd | Comprehensive Wellness programme with Wearable Device | |
| 5 | 132 | Star Health Insurance Co Ltd | Centrally administered Auto Adjudication system | |
| 6 | 224 | Religare Health Insurance Co Ltd | OPD and Wellness with Integrated Flexible Rewards program | |
| 7 | 229 | Religare Health Insurance Co Ltd | Short term Health Insurance | |
| 8 | 228 | Religare Health Insurance Co Ltd | Payment through Reward points | |
| 9 | 226 | Religare Health Insurance Co Ltd | Friend Assurance | |
| 10 | 60 | Bharti Axa General Insurance Co Ltd | Short term Health Insurance | |
| 11 | 140 | Kotak Mahindra General Insurance Co Ltd | Wearable Devices to existing customers | |
| 12 | 165 | Kotak Mahindra General Insurance Co Ltd | Wearable devices to New Customers | |
| 13 | 124 | Kotak Mahindra General Insurance Co Ltd | Friend Assurance | |
| 14 | 94 | TATA AIG General Insurance Co Ltd | Restricted Network (OPD / IPD) | |
| 15 | 82 | Go Digit General Insurance Ltd | Need based Health Insurance | |
| 16 | 222 | SBI General Insurance Co Ltd | Shagun- Gift an Insurance | |
| 17 | 50 | Bajaj Allianz General Insurance Co Ltd | Co-Pay model | |
| 18 | 145 | ICICI Lombard General Insurance Co Ltd | APP Monitored Diabetes Mellitus Wellness Program | |
| 19 | 146 | ICICI Lombard General Insurance Co Ltd | APP monitored Dyslipidemia Management Program | |
| NON-LIFE | ||||
| 1 | 59 | Bharti Axa General Insurance Co Ltd | Usage based Motor insurance – Pay as you Drive _ Private Car Policy_ Own Damage Section | |
| 2 | 77 | TATA AIG General Insurance Co Ltd | ||
| 3 | 79 | Go digit General Insurance Co Ltd | ||
| 4 | 173 | ICICI Lombard General Insurance Co Ltd | ||
| 5 | 175 | ICICI Lombard General Insurance Co Ltd | ||
| 6 | 17 | Acko General Insurance Ltd | ||
| 7 | 45 | Bajaj Allianz General Insurance Co Ltd | ||
| 8 | 96 | Liberty General Insurance Ltd | ||
| 9 | 138 | Edelweiss General Insurance Co Ltd | Motor Floater | |
| 10 | 4 | Reliance General Insurance Co Ltd | ||
| 11 | 179 | ICICI Lombard General Insurance Co Ltd | ||
| Distribution Development | ||||
| 1 | 35 | Audatex Solutions P Ltd | Online Salvage Auction Platform | |
| 2 | 36 | Audatex Solutions P Ltd | Online Automotive claims and collision estimation | |
| 3 | 37 | Audatex Solutions P Ltd | Online Automotive claims and collision estimation by using Artificial Intelligence (AI) | |
Surprising there is no initiative for approval of any innovative product from the public sector companies