An OBD (On-Board Diagnostics) device is viewed as a game changer by the motor insurance companies. A report in Banking Frontiers quotes Tarun Mathur, chief business officer at Policy Bazaar.com, as saying the cost of installing and maintaining the device is Rs 3000 and these devices will be successful in India provided manufactures start installing it; the insurance companies cannot do anything about it. The device, apart from providing driver behavior, will also alert the driver for over speeding and provide information as to how much the car has run on highways and city roads. It also helps insurance companies to identify responsible drivers from irresponsible ones. Further, The GPS device installed in 2-wheeler will be the greatest gamechanger, and it will be successful in reducing bike thefts.
According to Devendra Rane, founder & CTO at Coverfox.com, his company has introduced OBD devices at Rs 1600, by having a tie-up with Chinese companies. But still the cost of the device is high for the customers, he feels. In some developed countries, usage-based discount in insurance premiums is already being offered either through mobile app or through physical hardware fitted in vehicles.