Partnership: Uber's Preferred Insurance Provider

Standing by its commitment to ensure the safety of drivers and passengers on South African roads, the vehicle tracking and insurance telematics company Ctrack, a subsidiary of Novatel Wireless (Nasdaq:MIFI), has recently partnered with Vulindlela Underwriting Managers (VUM), the preferred insurance provider for innovative technology platform Uber South Africa.

This is the first "Pay-Per-Kay" (PPK) model that actively encourages Uber driver-partners to improve their driving behaviour, since they will be rewarded with lower insurance premiums for good driving. Their driving style is measured by a Ctrack telematics device installed in their vehicle. VUM will receive monthly driving behaviour scores for each driver partner’s vehicle fitted with a Ctrack device and insured through the variable model. Performance factors such as harsh braking, harsh cornering and excessive speeding will all be taken into account when determining premiums.

The insurance model furthermore also factors in the distance travelled when setting their insurance premiums – and hence the risk they present while on the road is finely assessed using such data. The Ctrack device will let VUM know how many kilometres the driver has driven in a week. VUM charges a set amount per kilometer, which they will deduct from the Uber driver-partners’ fares on a weekly basis – a model they call “Pay-Per-Kay”.

“This model 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,” said Pierre Bruwer, MD of Ctrack SA. “Ctrack’s driver behaviour monitoring is already being used by companies operating small and large fleets. As adoption of such technology increases, so does the awareness and contribution to improving driving habits in the country.”

“We are very excited about the potential of this insurance model. Our partnership with Ctrack has meant that we are able to take into consideration important risk factors that were previously unknown. Our hope is that this would lead to safer roads for all of South Africa’s commuters,” said Dave Gould, Managing Director of VUM.