- NB-IoT technology is used by IoT devices that operate in a low-power, wide-area network.
- Focus is on providing insurance services for users who refuse to take benefit of one calling it as a “waste of money”.
Advanced Info Service (AIS) and Thaivivat Insurance, two major Thai companies focusing on telecommunications and property insurance respectively, have partnered to implement narrowband Internet of Things (NB-IoT) technology for car insurance service.
How it will work
First, a SIM-card-based embedded device needs to be installed on the vehicle and synced with the available mobile app. The user can easily track down the vehicle with its help.
Then IoT devices would send a signal to begin the insurance coverage as soon as the automobile engine starts. When the engine stops, the IoT devices would again send signals to end further insurance coverage. Thus, insurance coverage and premium insurance payment by customers would only be based on the actual use of their vehicles.
Yongsit Rojsrikul, chief of enterprise business for AIS said that, “AIS is collaborating with Thaivivat to use NB-IoT for serving customers and create a different business model as compared to other insurance companies.”
He added that this technology can work indoors and underground in the presence of low mobile data traffic.
With motorists typically driving less than four hours a day (unless on a road trip), on-demand auto insurance has seen an increase in recent years. As a result of which, around 30 percent of motorists don’t apply for auto insurance as they do not consider spending money on insurance premiums to be a worthwhile decision in the long run.
Jirapan Assawathanakul, president and chief executive of Thaivivat, said, “We found that an average user spends two hours driving between home and work every day. So, with this on-demand insurance, they can save premiums up to 40 percent”
Other use areas
Besides implementing NB-IoT technology for automobile industry, the companies also have plans to offer on-demand insurance services in sectors such as travel, health, logistics, delivery, transport and finance leasing.
Currently, the decision has been taken with keeping in mind the automobile drivers in Thailand. But with its success, this can be carried out in other parts of the world as well.