Insurance Essay Example | Topics and Well Written Essays - 1500 words - 2

Insurance - Essay ExampleThe insurance policy schemes development telematics technology has several advantages while at the same time it ails from certain disadvantages.One of the main advantages of telematics insurance is that it can constantly remind the driver of how fast he or she is impetuous the vehicle. Thus, when a individual drives the vehicle beyond the safe speed limit, it works as an automatic check on dodgy habits. Thus, the younger generations who tend to embark on dangerous tearaway(a) habits will b encouraged to film safe driving practices through this system of insurance. Since the insurance company collects the superior based on the driving behaviour of educatee drivers, telematics will inculcate in them the habit of safe driving. It also offers a no claim-discount for the first five years and, at that placefore, it can reduce the risk of accidents in the case of young student drivers, who otherwise tend to drive recklessly. This in turn will also help the students to get a low insurance premium, which can be an attractive proposition for them. On the expiry of the insurance coverage reimbursement is made for the unused miles, and this enables the students to save the amount from their first premium deposit. Telematics technology helps the insurer also to instruct young student drivers when they meet with any road accident. Since the technology tracks driving behaviour, it allows them to claim damage from the insurer, provided there is no fault in their part. Some insurers such as Insure the Box provide a bonus of 100 mile per month to young student drivers if they drive safely (Avery, 2011). As per ABI news release on 5th march 2013 a reduction in car insurance premium for young drivers of up to 20% is expected, if the government takes action for maintaining a complete risk free driving on roads by the young students (ABI News Release, 2013). The European Court of Justice (ECJ) has announced late that it will prohibit insurance companies which tax more premiums