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Telematics serving as a risk management tool at every turn.

In the beginning, telematics was used for the purpose of navigation only but identifying the needs of the fleet, several advancements were made with the passage of time. Recognizing the potential of telematics, an important progress that needs to be noticed is the transformation of telematics from a simple navigation tool to the risk management tool. With this progress of telematics, recorded data can be ‘masticated’ for gaining an insight of driver’s behavior while on the road.

Accidents are not only responsible for damaging the asset but it also produces the downtime of vehicle and driver. Besides this, the company’s vehicle is a mobile billboard. Harsh driving behavior will not only be risky for an asset but the reputation of an organization is also at stake. Installation of telematics system such as Eagle-i helps in identifying the driver based on their individual scorecard and driver behavior (such as harsh acceleration, cornering, over-speeding, and braking). Identifying the drivers will benefit both consumer and fleet owner, as drivers with lower risk rate can be rewarded while risky drivers can be trained and supported for safer driving. This will also benefit the insurer in making better policies and quoting rates depending on their policyholders’ driving behavior and vehicle mileage.

When telematics is used as a risk management tool, it will not only reduce the number of accidents but will also increase productivity and cut the fuel cost. It is noted that the installation of telematics in the vehicle fleet reduces the chances of accidents by 20-30% and increase the operational efficiency by a minimum of 10%.  Since with the installation of telematics, excessive idling can be monitored along with the routes taken. Another safety benefit of telematics is the speed reduction. Enormous studies reveal that with the 1% increase in speed, fatality rate increases between 4 – 12%. This will not only help the consumers but also the fleet owners and insurers.


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