Moneycontrol
Dec 07, 2017 05:03 PM IST | Source: Moneycontrol.com

IRDAI forms working group on innovations in cover for wearable, portable devices

Insurance Regulatory and Development Authority of India (IRDAI) has constituted a working group on innovations in use of wearable and/or portable devices in insurance.

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Not Calculating The Insurance Cover | Most of the time people get into the trap of buying life insurance policy which provides them highest sum assured without calculating whether they really need that much cover at that point in time or not. It is important to calculate your overall annual expenses. Therefore, you should take a cover accordingly, otherwise you may end up paying a heavy premium.
Not Calculating The Insurance Cover | Most of the time people get into the trap of buying life insurance policy which provides them highest sum assured without calculating whether they really need that much cover at that point in time or not. It is important to calculate your overall annual expenses. Therefore, you should take a cover accordingly, otherwise you may end up paying a heavy premium.

Insurance Regulatory and Development Authority of India (IRDAI) has constituted a working group on innovations in use of wearable and/or portable devices in insurance.

The regulator said that in the context of both health insurance and life insurance, wearable devices could be used to measure personal fitness, incorporate a healthy lifestyle, among others. When it comes to motor insurance, recently the IRDAI had put up a discussion paper on telematics in motor insurance.

"While encouraging innovation, the regulator must run alongside it, keeping in view the interests of policyholders," said IRDAI.

The ten-member committee has representatives from the regulatory body as well from life and general insurance companies. Yegnapriya Bharath, CGM, IRDAI will be the chair of the committee.

The working group will look at how technological advancements, particularly wearable and portable devices may be treated from the point of view of risk improvement, risk assessment and use/distribution of such devices as part of policy design.

Further, it will also understand the practices of other jurisdictions in this area and suggest the policy framework that needs to be put in place keeping in view the interests of policyholders.

IRDAI said that this commitee will also examine the various aspects that would impact the pricing. They are required to submit their report within 8 weeks.

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