Compiled by Aditya!
Telematics has not picked up in a big way in any single country that I know of. Second, Telematics in India is unlikely to have a major impact on pricing, because of one simple reason: third-party premiums are already fixed by the regulator. Own-damage premiums are going down because of no-claim bonus or as cars get older and their value goes down, the third party premium are standard.
Typically, telematics is making an impact in other countries essentially in third-party. Telematics in India, you might have a car and say that I will drive the car only on my birthday. You still need third-party insurance, and no amount of telematics can bring it down.
Second, high-end cars in India are driven by drivers. Also, we have a culture that a car is driven by more than one person. So it will be difficult for telematics system to recognize any one driving behaviour. Also, in telematics where you drive is more important than how you drive.
Last, typically a telematics device is priced between Rs2,500 and Rs3,000. Who will fund this device. If insurance companies give it themselves and also give a discount in future, how will they fund it. And why would a customer buy a it for Rs3,000 for a possible reduction of premium of Rs3,000 over 3 years? This is again one of the things that people are talking about.
I do not know of any country in the world where more than 5% of the cars have telematics. Telematics has been around for more than 10 years now. I am not being biased, I am just sharing my understanding. If you ask any insurance company that offers telematics, they will be reluctant to tell you how many cars have that system, because the number will be very low.