RELATED APPLICATION

Benefit is claimed to India Provisional Application No. 710/CHE/2010, entitled "REAL¬TIME PRE-PAID MOTOR VEHICLE
INSURANCE PROCESSING SYSTEM AND METHOD" by, G. B. S. Bindra et. Al filed on March 17, 2010, which is herein incorporated in its entirety by reference for all purposes.

FIELD OF THE INVENTION

The present invention relates to the field of insurance system, and more particularly relates to a prepaid insurance system for automobiles.

BACKGROUND OF THE INVENTION

The current automobile insurances are period-based insurances, which provide claims for an accident occurred during the period of insurance. One of the currently known systems, insurance premium is calculated by obtaining driving information on a vehicle, while another known insurance systems include renewing period of an insurance through communication with an insurance company after elapse of a predetermined period of time by using a card-type insurance card loaded on a vehicle. However, these systems provide a renewal of insurance through communication with the insurance company upon expiry of the insurance recorded on a card irrespective of dynamic conditions of vehicle in motion.

Further, calculation of insurance fee may be made by investigating the parameters, such as driver's profile, details of the vehicle, driving history of the driver, health of the vehicle and its various parts such as tyres, brake, tyre pressure etc., so as to enhance efficiency of determining an insurance fee at the time of subscribing the insurance.

However, the currently known systems are nothing more than a manner of extinguishing the insurance fee after elapse of a certain period of time.

SUMMARY OF THE INVENTION

The present invention provides a method and system for charging a usage based premium for an insured vehicle. In one aspect, a method includes measuring dynamic conditions associated with an insured vehicle in motion by an onboard electronic unit fitted in the insured vehicle. The method also includes periodically communicating the dynamic conditions associated with the insured vehicle to a back-end server via a wireless communication channel by the onboard electronic unit. The method further includes dynamically calculating an usage based insurance premium for the insured vehicle by the backend server based on the periodically communicated dynamic conditions associated with the insured vehicle. Moreover, the method includes charging the usage based insurance premium in real time from a prepaid account of a user of the insured vehicle.

In another aspect, a non-transitory computer-readable storage medium having instructions stored therein, that when executed by a prepaid insurance system, results in performing a method of charging a usage based insurance premium for an insured vehicle described above.

In yet another aspect, a pre-paid insurance system for charging a usage based insurance premium for an insured vehicle includes an onboard diagnostic unit fitted in the insured vehicle, and a backend server wirelessly coupled to the onboard diagnostic unit. The onboard diagnostic unit measures dynamic conditions associated with the insured vehicle in motion, and periodically communicates the dynamic conditions associated with the insured vehicle to the backend server. The backend server dynamically calculates a usage based insurance premium for the insured vehicle based on the periodically communicated dynamic conditions associated with the insured vehicle, and charges the usage based insurance premium in real time from a prepaid account of a user of the insured vehicle.

Other features of the embodiments will be apparent from the accompanying drawings and from the detailed description that follows.

BRIEF DESCRIPTION OF THE ACCOMPANYING DRAWINGS

Figure 1 is a system view of a real time prepaid automobile insurance processing system for charging a usage based insurance premium for an insured vehicle, according to one embodiment.

Figure 2 is an exploded view of the onboard electronic unit such as those shown in Figure 1, according to one embodiment.

Figure 3 is a process flowchart of an exemplary method of charging a usage based insurance premium for the insured vehicle, according to one embodiment.

Figure 4 is a screenshot showing exemplary prepaid account details associated with a user of the insured vehicle, according to one embodiment.

Figure 5 is a screenshot showing exemplary usage information associated with the insured vehicle based on which a usage based insurance premium is calculated, according to one embodiment.

The drawings described herein are for illustration purposes only and are not intended to limit the scope of the present disclosure in any way.

DETAILED DESCRIPTION OF THE EMBODIMENTS OF THE INVENTION

The present invention provides a method and system for charging a usage based premium for an insured vehicle. In the following detailed description of the embodiments of the invention, reference is made to the accompanying drawings that form a part hereof, and in which are shown by way of illustration specific embodiments in which the invention may be practiced. These embodiments are described in sufficient detail to enable those skilled in the art to practice the invention, and it is to be understood that other embodiments may be utilized and that changes may be made without departing from the scope of the present invention.
The following detailed description is, therefore, not to be taken in a limiting sense, and the scope of the present invention is defined only by the appended claims.

Figure 1 is a system view of a real time prepaid automobile insurance processing system 100 for charging a usage based insurance premium for an insured vehicle 104, according to one embodiment. In Figure 1, the system 100 includes an onboard electronic unit 102 mounted in the insured vehicle 104, a back-end server 106 communicatively coupled to the onboard electronic unit 102.

According to Figure 1, a user of the vehicle 104 purchases an insurance policy for insuring the vehicle 104 by paying a predetermined amount of insurance fee (e.g., a base cost for covering the insurance of the vehicle in a stationary position and a prepaid amount for deducting premium based on usage of the vehicle 104). Upon purchasing, the insurance company creates a prepaid account associated with a rate plan for dynamically deducting an insurance premium. The insurance policy of prepaid type can be a for life time or for a certain period.

Also, the insurance company mounts the onboard electronic unit 102 in the insured vehicle 104. The on-board electronic unit 102 is capable of collecting dynamic conditions of the insured vehicle 104 and driver associated with the insured vehicle 104 when the insured vehicle 104 is in motion. Once the insured vehicle 104 is driven, the onboard electronic unit 102 collects dynamic conditions from various external sources such as Global Positioning System (GPS) Satellites, Geographical Indication System (GIS) Server) and internal sources like OBD II port, crash sensor, motion sensor and so on associated with the vehicle 102.

The dynamic conditions may include but not limited to driver's profile, details of the insured vehicle 104, driving history of the driver, health of the insured vehicle and its various parts such as tyres, brake, tyre pressure, windscreen wipers etc., external factors that affects drivability of the insured vehicle 104 such as rain, fog, snow etc., optimized use of safety features such as seat belts, windscreen wipers during rain, suitable speed of the windscreen wipers, sudden braking, usage of fog lamps during fog etc., traffic rules violations such as usage of high beam lamp in city limits, turning the insured vehicle 104 without turn indicators, quick turn at higher speeds, use of turn indicators while going in a straight road, use of mobile phones while driving, jumping signals, frequent lane change etc., density of traffic where the insured vehicle 104 is running, number of passengers present in the insured vehicle 104 at a time, age of the driver and usage of spectacles, day of travel such as week day, weekend holiday, type of road used (highway/city road), etc.

The collected dynamic conditions are temporarily stored in memory of the onboard electronic unit 102. The onboard electronic unit 102 collects and stores the dynamic conditions till a minimum distance travelled exceeds minimum configured distance or minimum time elapsed exceeds a configured time. Once either of the parameters is met, the onboard electronic unit 102 establishes a communication session with the backend server 106 and transmits the collected information to the backend server 106. In one embodiment, the dynamic conditions are transmitted via a wireless communication channel (e.g., GPRS) as a stream of data. Each transmission session has a unique session identifier and each record transmitted has a unique record number.

Upon receiving the dynamic conditions, a collation module 108 in the backend server 106 generates a rating request including unique identifier associated with the onboard electronic unit 102 and the dynamic conditions and sends the rating request to a rating engine 110 in the backend server 102. The rating engine 110 identifies the user associated with the insured vehicle 104 based on the unique identifier in the rating request. Accordingly, the rating engine 110 calculates a usage based insurance

premium as per the charge plan associated with the user based on the dynamic conditions. In one embodiment, the rating engine 110 compares the dynamic conditions with optimal values for the dynamic conditions set within master database 122. Based on which, the rating engine 110 calculates the usage based premium associated with the insured vehicle 104. An example of usage based insurance premium computation is given below:

Consider that, the insured vehicle 104 is driven 1833 Kms after purchasing the insurance policy. Also, the last time when the insured vehicle was driven is 3Km at a speed of 70Km/Hr during Night time (Between 20:31-20:31 Hrs). As per the above charge plan associated with th insured vehicle, the rating engine 110 calculates in real time the usage based insurance premium for 3 Kms as shown below:

((0.7 * 3) * 0.4) + ((0.65 * 3) * 0.3) + ((0.75 * 3) * 0.3) = 2.1. Thus, the usage based insurance premium charged to the user is 2
rupees and 10 Paisa.

The usage based insurance premium is calculated in such a manner that the user is provided discounts or charged additional amount. For example, if the insured vehicle 104 is driven as per optimal values, then discount is provided to the user. If the insured vehicle 104 is not serviced within the service interval specified by the vehicle manufacturer, then a surplus amount is charged in the usage based insurance premium. Thus, safe drivers may end up paying less insurance premium as compared to rash drivers. Also, the insurance premium amount can be brought down by improving driving behaviour monitored by the onboard electronic unit 102. For example, the user may monitor the dynamic conditions that are deviating from a predefined optimum level and take actions accordingly to bring these conditions to the optimum level.

Based on the calculated insurance premium, the rating engine 110 notifies regarding the usage based insurance premium amount to the user via a display of the onboard electronic unit 102 or a mobile device of the user. Simultaneously, the rating engine 110 charges the usage based insurance premium from the prepaid account of the user. As a result, amount in the prepaid account dynamically diminishes as the vehicle 104 is driven from one location to another. Also, the rating engine 110 notifies the user of the charging the usage based insurance premium along with discount/surcharge information. Further, the rating engine 110 updates a master database 122 in the backend server 106 upon charging the usage based insurance premium so that the insurance premium applicable at particular time duration can be applied till the next interval arrives. Thus, the insurance fee can be settled on a rational basis because the insurance premium is charged based on the usage of the insured vehicle 104.

When the balance amount in the prepaid account falls below threshold value, the rating engine 110 sends alerts to the user regarding low balance in the prepaid account so that the user can top-up credit limit associated with the pre-paid account on need basis using various communication medium such as GPRS, SMS etc. It is appreciated that, the alerts can be sent to the onboard electronic unit or the mobile device as email or SMS text. Alternatively, the user may check with the backend server 106 regarding the balance amount in the prepaid account. The user can recharge the prepaid account through SMS or IVR system to increase credit limit above the threshold value via a payment gateway.

The rating module 110 along with other components of the insurance system 100 uses a messaging gateway module 120 for sending various notifications and alerts to parties (users, engineers and administrators), or receiving SMS top up requests for recharging credit limit in the prepaid account. As shown, the backend server 106 includes a device manager module 112, a provisioning module 114, a value added services module 116, and a web interface module 118. A value added services module 116 is used for providing extended services like Assisted map/guidance services, Pay parking services, Road breakdown services, Car pooling services, and so on. A provisioning module 114 triggers the onboard electronic unit 102 for controlling functions like Activation, Deactivation, Restart, Status enquiry of the onboard electronic unit 102. The device manager module 112 directly connects to the onboard electronic unit 102 for sending triggered commands posted by the provisioning module 114 The web interface module 118 provides web interface services for the user and administrators to perform the desired functionalities. The web interface module 118 also interfaces with the insurance system for providing various services requested by the insurance company.

Figure 2 is an exploded view 200 of the onboard electronic unit 102 such as those shown in Figure 1, according to one embodiment. The on-board electronic unit 102 includes a global positioning system (GPS) module 202, an onboard diagnostic (OBD) scan module 204, a global system for mobile communications (GSM) module 206, a processor 208, memory 210, a display 212, crash sensors 214, motion sensors 216, and a power unit 218.

The GPS module 202 captures longitude, latitude and altitude (LLA) based on geographical position of the insured vehicle 104. The OBD scan module 204 and calculates distance and speed of the insured vehicle 104 based on the captured LLA and also records driving patterns of the driver of the insured vehicle 104. The processor 208 collates the dynamic conditions from all sources (internal and external to the insured vehicle 104) and calculates driving speed and distance covered based on the input from the GPS module 202 and/or the OBD scan module 206. The crash sensors 214 detect crash situations or possibility of vehicle crashes. The motion sensors 216 is used for measuring driving pattern as well as driving behavior of the driver of the insured vehicle 104 like hard breaking, hard acceleration etc. In one embodiment, the GPS module 202, the OBD) scan module 204, the crash sensors 214, and the motion sensors 216 measures and provides various dynamic conditions for calculating usage based insurance premium for the insured vehicle 104 as described in Figure 1.

The memory 210 stores the dynamic conditions of the vehicle in motion temporarily for transmission or when the GSM network is unavailable for transmission. The GSM module 206 periodically transmits the dynamic conditions of the insured vehicle 104 via GPRS or SMS to the backend server 106 for computing the usage based insurance premium associated with the insured vehicle 104. The display 212 facilitates displaying of notification and alerts associated with the usage based insurance premium and the prepaid account to the user. For example, the display 212 may display discounts or surcharge calculated on the usage based insurance premium by the rating engine 110. The power unit 218 is used for powering up above mentioned modules of the backend server 106.

Figure 3 is a process flowchart 300 of an exemplary method of charging usage based insurance premium for the insured vehicle 104, according to one embodiment. At step 302, dynamic conditions associated with the insured vehicle 104 in motion are measured by the onboard electronic unit 102 fitted in the insured vehicle 104. At step 304, the dynamic conditions associated with the insured vehicle 104 are periodically communicated to the back-end server 106 via a wireless communication channel by the onboard electronic unit 102. At step 306, an usage based insurance premium for the insured vehicle 104 is dynamically calculated by the backend server 106 based on the periodically communicated dynamic conditions associated with the insured vehicle 104. At step 308, the usage based insurance premium is charged in real time from a prepaid account of a user of the insured vehicle 104.

Figure 4 is a screenshot 400 showing exemplary prepaid account details associated with a user of the insured vehicle, according to one embodiment. As shown in Figure 4, the prepaid account details include information associated with the insured vehicle 104 and driver information. The information associated with insured vehicle may include vehicle registration number, year of registration, model number, year of manufacture, value of the vehicle, and so on. The driver's details may include driving license information, name, age, address, driving history and so on.

Figure 5 is a screenshot 500 showing exemplary usage information associated with the insured vehicle based on which a usage based insurance premium is calculated, according to one embodiment. As shown in Figure 5, the usage information includes driving distance, drive time, driving speed, driving behaviour and driving location. Based on the above, the screenshot shows the premium amount charged dynamically from the prepaid account of the user.

The present embodiments have been described with reference to specific example embodiments, it will be evident that various modifications and changes may be made to these embodiments without departing from the broader spirit and scope of the various embodiments. Furthermore, the various devices, modules, selectors, estimators, and the like described herein may be enabled and operated using hardware circuitry, for example, complementary metal oxide semiconductor based logic circuitry, firmware, software and/or any combination of hardware, firmware, and/or software embodied in a machine readable medium. For example, the various electrical structure and methods may be embodied using transistors, logic gates, and electrical circuits, such as application specific integrated circuit.

We Claim:

1. A method of charging a usage based insurance premium for an insured vehicle, comprising:

measuring dynamic conditions associated with the insured vehicle in motion by an onboard electronic unit fitted in the insured vehicle;

periodically communicating the dynamic conditions associated with the insured vehicle to a back-end server via a wireless communication channel by the onboard electronic unit;

dynamically calculating an usage based insurance premium for the insured vehicle by the backend server based on the periodically communicated dynamic conditions associated with the insured vehicle; and
charging the usage based insurance premium in real time from a prepaid account of a user of the insured vehicle.

2. The method of claim 1, wherein the dynamic conditions associated with the insured vehicle are selected from the group consisting of a driver's profile, details of motor vehicle, driving history of the driver, health of the insured vehicle, external factors that affects drivability of the insured vehicle, optimized use of safety features, suitable speed of windscreen wipers, sudden braking, usage of fog lamps during fog, traffic rules violations, density of traffic where the insured vehicle is running, number of passengers present in the insured vehicle at a time, age of the driver, usage of spectacles, and day of travel.

3. The method of claim 1, wherein dynamically calculating the usage based insurance premium for the insured vehicle by the backend server based on the dynamic conditions associated with the insured vehicle, comprises:

generating a rating request upon receiving the dynamic conditions from the onboard electronic unit by a collation module of the back-end server, wherein the rating request comprises unique identifier associated with the onboard electronic unit, and the dynamic conditions;

identifying the user associated with the insured vehicle based on the unique identifier in the rating request by a rating engine of the backend server; and

calculating a usage based insurance premium based on the dynamic conditions as per a charge plan associated with the user by the rating engine.

4. The method of claim 1, wherein the usage based insurance premium comprises the usage based insurance premium with a discount offered to the user or a surcharge charged to the user based on the dynamic conditions.

5. The method of claim 1, wherein charging the usage based insurance premium in real time from the prepaid account of the user of the insured vehicle comprises:

communicating the usage based insurance premium information to the user;

dynamically deducting the usage based insurance premium from the prepaid insurance account of the user of the insured vehicle; and

notifying the deduction of the usage based insurance premium from the prepaid account.

6. The method of claim 1, wherein charging the usage based insurance premium in real time from the prepaid account of the user of the insured vehicle further comprises:

sending an alert to the user of the insured vehicle on a mobile device of the user when the credit limit in the prepaid insurance account falls below a threshold value; and allowing the user to recharge credit limit in the prepaid insurance account.

7. A pre-paid insurance system for charging a usage based insurance premium for an insured vehicle comprising:
an onboard diagnostic unit fitted in the insured vehicle; and

a backend server wirelessly coupled to the onboard diagnostic unit, wherein the onboard diagnostic unit measures dynamic conditions associated with the insured vehicle in motion, and periodically communicates the dynamic conditions associated with the insured vehicle to the backend server, and wherein the backend server dynamically calculates an usage based insurance premium for the insured vehicle based on the periodically communicated dynamic conditions associated with the insured vehicle, and charges the usage based insurance premium in real time from a prepaid account of a user of the insured vehicle.

8. The system of claim 7, wherein the dynamic conditions associated with the insured vehicle are selected from the group consisting of a driver's profile, details of motor vehicle, driving history of the driver, health of the insured vehicle, external factors that affects drivability of the insured vehicle, optimized use of safety features, suitable speed of windscreen wipers, sudden braking, usage of fog lamps during fog, traffic rules violations, density of traffic where the insured vehicle is running, number of passengers present in the insured vehicle at a time, age of the driver, usage of spectacles, and day of travel.

9. The system of claim 7, wherein in dynamically calculating the usage based insurance premium for the insured vehicle based on the dynamic conditions associated with the insured vehicle, the backend server comprises:

a collation module for generating a rating request upon receiving the dynamic conditions from the onboard electronic unit, wherein the rating request comprises unique identifier associated with the onboard electronic unit, and the dynamic conditions; and

a rating engine for identifying the user associated with the insured vehicle based on the unique identifier in the rating request, and for calculating a usage based insurance premium based on the dynamic conditions as per a charge plan associated with the user.

10. The system of claim 9, wherein the usage based insurance premium comprises the usage based insurance premium with a discount offered to the user or a surcharge charged to the user based on the dynamic conditions.

11. The system of claim 10, wherein in charging the usage based insurance premium in real time from the prepaid account of the user of the insured vehicle, the rating engine communicates the usage based insurance premium information to the user, dynamically deducts the usage based insurance premium from the prepaid insurance account of the user of the insured vehicle, and notifies the deduction of the usage based insurance premium from the prepaid account.

12. The system of claim 10, wherein in charging the usage based insurance premium in real time from the prepaid account of the user of the insured vehicle, the rating engine sends an alert to the user of the insured vehicle on a mobile device of the user when the credit limit in the prepaid insurance account falls below a threshold value, and allows the user to recharge a credit limit in the prepaid insurance account.

13. A non-transitory computer-readable storage medium having instructions stored therein, that when executed by a prepaid insurance system, results in performing a method of charging a usage based insurance premium for an insured vehicle comprising:

measuring dynamic conditions associated with the insured vehicle in motion by an onboard electronic unit fitted in the insured vehicle;

periodically communicating the dynamic conditions associated with the insured vehicle to a back-end server via a wireless communication channel by the onboard electronic unit;

dynamically calculating an usage based insurance premium for the insured vehicle by the backend server based on the periodically communicated dynamic conditions associated with the insured vehicle; and

charging the usage based insurance premium in real time from a prepaid account of a user of the insured vehicle.

14. The storage medium of claim 13, wherein the dynamic conditions associated with the insured vehicle are selected from the group consisting of a driver's profile, details of motor vehicle, driving history of the driver, health of the insured vehicle, external factors that affects drivability of the insured vehicle, optimized use of safety features, suitable speed of windscreen wipers, sudden braking, usage of fog lamps during fog, traffic rules violations, density of traffic where the insured vehicle is running, number of passengers present in the insured vehicle at a time, age of the driver, usage of spectacles, and day of travel.

15. A method and system of charging a usage based insurance premium for an insured vehicle as described herein and with reference to the accompanying drawings.