MSIG offering Usage-Based Motor Insurance after Successful Pilot Study
Following a successful pilot study, MSIG Insurance has launched a pay-how-you-drive car insurance policy named, UMax.
Eighty-five percent of the drivers who have participated in the pilot study agreed that the use of telematics has encouraged them to drive better.
“The positive feedback we have received from the pilot study has convinced us that car owners here appreciate this new technology,” said Michael Gourlay, CEO of MSIG Insurance.
“We are delighted to be bringing more options to the market. As consumers become more connected than ever, pay-how-you-drive is a more intuitive model for drivers. It is also a customised system and encourages our customers to drive more safely as they get instant feedback from the App,” Mr Gourlay added.
Drivers who sign up for UMax will have a telematics device professionally installed in their cars for the recording of driving data. Each journey is assessed and given a driving score based on the distance, speed and driving style such as cornering, acceleration and braking. There will be four scoring bands introduced – Green, Yellow, Orange and Red.
The driver can access his driving data through a free smartphone application – MSIG Connected Car. He can also tap on the App to check on his vehicle location in Singapore. If he signs up for a value-added option, he can even locate his vehicle if he travels to West Malaysia.
In the first year, drivers will pay a premium that is based on the existing pricing method using a combination of factors such as the vehicle make and model, driver’s profile and claims history. Driving data will be assessed 60 days from the policy commencement date.
In the event of an accident, the driver can bring down his own damage excess by 50% if he has achieved a driving score within the Yellow band in a 30-day period before the accident or even a complete waiver of the excess if his score is within the Green band. This excess adjustment is unique to MSIG’s UMax model.
|Driving Score||Excess Amount|
|Orange / Red||Standard|
“With the excess adjustment, drivers can literally reduce their excess to zero if they maintain an excellent driving score,” said Mr Jeremy Lian, Senior Vice President of Technical Services.
Car owners who buy UMax will not have to pay for the device or for the installation. MSIG will give a rebate of up to $150 upon the installation of the device in their cars.
MSIG is rolling out a similar product through its partnership with DBS bank.
About MSIG Insurance
MSIG Insurance Singapore, a member of the MS&AD Insurance Group, is one of Singapore's leading general insurers. With a local presence of over 100 years, MSIG Singapore offers an extensive range of insurance solutions for commercial and personal risk protection, enabling the security and safety of individuals and businesses. Wholly owned by MSIG Holdings (Asia) Pte Ltd, MSIG Singapore holds an A+/Stable financial rating by Standard & Poor's.