Hyundai Motor India Limited (HMIL) has introduced Usage-Based Insurance (UBI) for its connected car customers, offering significant potential savings based on driving performance. This new program, rolled out in collaboration with Hyundai India Insurance Broking (HIIB) and partners like Cholamandalam MS General Insurance, Go Digit General Insurance, and ICICI Lombard, aims to reward safer driving behaviors.
How Hyundai's UBI Program Works
The core concept of the UBI initiative is straightforward: drivers who exhibit safe habits can qualify for reduced insurance premiums. Hyundai's Bluelink technology plays a crucial role by collecting and analyzing vehicle usage data over a three-month period. This data is then used to generate a UBI score for eligible customers.
Key indicators for calculating the UBI score include:
- Driving Dynamics: Rapid acceleration, rapid deceleration, and rapid braking are monitored.
- Speed Control: Consistent and safe speed adherence.
- Idling Behaviour: Minimizing unnecessary engine idling.
Tarun Garg, MD & CEO, HMIL, stated, “In certain cases, customers may save up to 15% (basis insurers underwriting rules) on the own-damage component of their insurance premium, making vehicle ownership safer, smarter and more rewarding.”
Accessing Benefits and Improving Scores
Customers whose insurance renewal is due within the next 90 days can access their UBI score directly through the Bluelink App. A score of 70 or higher may unlock insurance benefits, subject to the underwriting policies of the participating insurance partners. For those with scores below this threshold, the app also provides personalized driving tips to help improve their habits and potentially qualify for savings in the future.
Growing Connected Car Ecosystem
Hyundai's UBI program leverages its expanding connected car ecosystem in India. The company currently has over 0.8 million connected cars on Indian roads and aims to reach 1 million cumulative connected car sales by 2027, with an ambitious target of 2 million by 2030, all powered by its Bluelink platform.