AXA, Singtel to offer a year of free car insurance to ‘safest driver’

SINGAPORE — In the latest move by motor insurers to use telematics, AXA Insurance has teamed up with telco giant Singtel to launch a device that is installed in cars to monitor driving behaviour.

Telematics — or the use of wireless telecommunications technologies to transmit data — can help insurers to track information related to a motorist’s driving style, including speed. And a potential benefit for the motorist-client is that he or she may get to pay lower premiums with the insurance company, if data shows that he or she is a safe driver.

In the latest collaboration, AXA and Singtel are offering a year of free car insurance worth S$5,000 to the safest driver found. To qualify, drivers have to sign up to activate the smart car device provided, drive at least 3,000km during a stipulated period, and match up to a “driving score” computed on a smartphone-based application (app).

There is a 24-month contract involved and drivers taking part need a Singtel postpaid mobile plan and a new Singtel MobileShare subscription, both companies said in their press release on Tuesday (May 16). This is to work with the smart car device and the cloud-based app subscription for 24 months.

Together, these technologies analyse driving patterns through the vehicle’s on-board diagnostic port, where the device will synchronise with the smart car app on the motorist’s smartphone over Singtel’s mobile network.

Drivers get insights into their driving habits, such as braking, acceleration and speed, which may also help them improve on lowering fuel consumption or to troubleshoot potential engine problems based on engine health information provided, such as battery voltage and engine temperature.

Apart from these, they may also get alerts for speed limits, their trip history, real-time location monitoring that could help them find their car, or to schedule reminders on vehicle maintenance.

This tie-up between Singtel and AXA comes on the back of insurer AIG’s announcement early this month that it would be offering motorists discounts on their insurance premiums if they are assessed to be of low safety risk based on a 20-minute questionnaire.

To gauge a motorist’s driving and reward the ones who drive well, AIG teamed up with the AAS Academy, a subsidiary of the Automobile Association of Singapore, on the questionnaire to test drivers’ knowledge, concentration and observation, driving attitudes, and hazard perception. Those who get a “low-risk” score will get a 15-per-cent discount on vehicle insurance premium.

Earlier in March, AIG already launched a smart driving app that grades a motorist’s driving each time he or she takes the wheel, using telematics to measure indicators such as acceleration, braking, cornering and speed. Safe drivers get up to 15 per cent off their insurance premiums. With the online questionnaire, a motorist could potentially get 30 per cent off on premiums.

Last year in October, NTUC Income also launched a scheme giving discounts to good drivers. Motorists have to download a free smartphone app that tracks their speed, manoeuvres, drive time and mileage, and the data is used to compute a score. Those who meet a high score and a minimum mileage can get savings on their motor insurance premiums.