With Tesla gearing up to enter India’s electric vehicle market, the automaker might not implement its trademark telematics insurance model because of the Digital Personal Data Protection Act (DPDPA) and the awaiting IRDAI sanction for usage-based insurance (UBI). Rather, Tesla is expected to utilize a China-like strategy by collaborating with regional insurers—like Acko, Zurich Kotak, and Liberty General—to provide bundled, fixed insurance plans at the moment of purchase. Worldwide, Tesla’s insurance system employs real-time driving data to set monthly premiums, incentivizing safer driving via its “Safety Score.” Nevertheless, India’s data legislation requires explicit, detailed, and retractable user approval for personal data usage, hindering real-time data gathering. The law permits individuals to revoke consent and demand data removal, rendering Tesla’s direct approach unfeasible. An insurance package, incorporated into the online or showroom experience, is anticipated to utilize standard pricing factors such as age, location, and vehicle details. This change also reflects Tesla’s approach in data-sensitive regions such as China and Europe. Moreover, Tesla’s insurance division has experienced underwriting losses, prompting worries about the viability of its direct approach. Currently, India’s stringent data regulations and oversight seem to be directing Tesla away from its innovative insurance strategy.
