MG Astor: India's first car using blockchain technology to handle insurance cost and resale value

Aug 22, 2021 1 min read
MG Astor: India's first car using blockchain technology to handle insurance cost and resale value

Blockchain technology in MG Astor will enable the car to evaluate your insurance cost and resale value in real-time.

Not only is MG Astor's upcoming mid-size SUV equipped with level 2 autonomous technology, but the company is also incorporating blockchain technology into it.

Like most connected cars today, the MG Astor also records data about the user's driving skills. MG has partnered with local blockchain startup Koinearth to gather this data into a "Digital Passport."

For the client, the digital Passport is just an interface inside the app that displays the data collected by the car. However, Praphul Chandra, Koinearth's chief executive officer, said that the company is at the centre of a blockchain-based network that links different parties. In this instance, MG Motors produced the Passport, but the user owns the data contained therein, which means that anybody else wishing to access this data will need to have explicit consent.

Based on this data, carmakers, insurance companies, and even resellers can make future choices. For instance, insurance rates may be lower for a good driver than for someone whose Passport data indicates a more reckless driving behaviour. Similarly, if the client ever sells their car, service records and other information may keep on the Passport to determine the resale value.

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MG Motors will collaborate with various insurance and reseller businesses, all of which will require to join the platform. The Passport record on the blockchain and data can be accessed only with the user's consent. At the time, the carmaker has not revealed which insurance providers and resellers have partnered with it.

Unlike the company's self-driving technology for the MG Astor, the Digital Passport is a first-of-its-kind feature for Indian carmakers.

However, similar technology is already is in use on a global scale. In July, Allianz, Europe's biggest insurer, announced the launch of an enterprise blockchain platform that enables the business to streamline the insurance claims process across its many legal entities on the continent. The firm intends to implement the solution across 23 of its European subsidiary locations.

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