Novatel Wireless, a leading global provider of solutions for the Internet of Things (IoT) has joined forces with Vulindlela Underwriting Managers (VUM) to deliver a customized usage-based insurance (UBI) solution for Uber driver-partners in South Africa.
Uber, the ride-share service that has coverage in over 400 cities worldwide, has a large presence in South Africa with nearly 25,000 driver-partners to date. VUM, Uber's preferred auto-insurance provider in South Africa, collaborated with Novatel Wireless to deliver a customized usage-based insurance program. The program encourages Uber drivers to drive more safely by rewarding them with lower insurance premiums for those who improve their driving behavior.
Their driving style is measured by the Ctrack telematics solution that reports on performance factors such as hard braking, harsh cornering, and excessive speeding. The technology also accurately measures distance traveled. VUM charges a set amount per kilometer, which they will deduct from the Uber driver-partners' fares on a weekly basis. This type of usage-based model in the automobile insurance and automobile leasing sectors throughout Europe and Africa is coined "pay-per-kilometer," (pay-per-kay) in which rates are measured based on the number of kilometers traveled.
Dave Gould, Managing Director of VUM
We are very excited about the potential of this insurance model with the Ctrack solution. Our partnership with Novatel Wireless has meant that we are able to take into consideration important risk factors that were previously unknown.
Pierre Bruwer, Managing Director of Ctrack SA
This model combined with driver behavior monitoring has huge potential for the South African market where road fatalities are at unacceptable levels, as good driving styles can only lead to improved safety on the road.
