WATCH the way you drive. Soon, vehicle insurance premiums will shoot up depending on the number of traffic violations one is charged with. The Insurance Regulatory and Development Authority of India (IRDAI) has called for the institution of a nine-member Working Group to examine and recommend linking of motor insurance premiums with traffic violations.
It is a global practice to link violations with premiums, but India did not consider it till it implemented the latest Motor Vehicles Act. TL Alamelu, member, IRDAI, said that linking insurance premiums to traffic violations would reduce road accidents and change the behaviour of drivers.
The idea came about after a high-powered committee for traffic management in the National Capital Territory asked IRDAI to examine the concept of linking insurance premiums with traffic violations. Though the Motor Vehicles Act falls in the Concurrent List, it is for the states to decide how to implement it. But insurance companies are not going to let go of the new rule as it would lead to less insurance claims. Careful driving would mean fewer accidents.
However, vehicle owners are not amused. Gurvinder Singh, a Delhi resident, told India Legal: “The new rules that impose stiff fines are okay, but tying traffic violations to insurance premiums is a bit too much. No one is asking the government what it is doing with the revenue that it is getting from traffic fines. It should be improving the conditions of roads and employing more traffic personnel to help bring discipline on the roads.”
The group is studying international norms to figure out how India can implement it. Once its recommendations come in, a pilot project would be launched in the capital to examine how to implement the new formula of fixing insurance premiums. The group comprises officials of the Delhi Traffic Police, Insurance Information Bureau of India and other private sector general insurance companies.
Denne historien er fra October 21, 2019-utgaven av India Legal.
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Denne historien er fra October 21, 2019-utgaven av India Legal.
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