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Challans to make the most expensive car cover, test soon at NCR | India News

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NEW DELHI: With the insurance regulator planning a “traffic violation premium” to control errant drivers, a year-long pilot project will soon be launched in Delhi that will link vehicle insurance premiums to traffic violations committed in the last two years. For starters, vehicle owners in Delhi and adjacent areas in the NCR would be the first to pay the additional premium as they renew their vehicle insurance for violating traffic and motor vehicle rules.
Such additional premiums would be between 100 and 750 rupees for two-wheelers, and for four-wheelers and commercial vehicles, it would be in the range of 300 to 1500 rupees, according to the insurance regulator.

Challans to make the most expensive car cover, test soon at NCR |  India News

According to the exposure draft published by the Insurance Regulatory and Development Authority (IRDA), while a driver caught driving drunk would attract the maximum number of traffic violation points, the second highest score would be for dangerous driving, which includes speaking for phone while driving.
Traffic violation points will double and triple if the violation is committed for the second and third time in two years.

Time view

In 2018, 151,000 died in traffic accidents in India. Given this sobering truth, it is necessary to actively discourage reckless drivers. Hopefully, this punitive move will deter them from breaking the law.

The Delhi Traffic Police has been recording traffic offenses digitally. Although initially the pilot test was planned only for vehicles registered in Delhi, it was found that a large number of NCR vehicles are on the roads of the city and therefore those vehicles would be included in this scope.
Based on the pilot’s finding in Delhi, this will spread to other states and UT. TOI on June 29, 2020 had first reported IRDA’s plan to launch this pilot in Delhi.
The additional premium would be paid by the vehicle owner, as he / she is responsible for allowing anyone to drive the vehicle. The traffic violation premium will float over the self and third party damage sections of auto insurance and can be attached to any section of auto insurance coverage that is purchased. IRDA has invited all interested parties to participate in the recommendations until February 1.

Reference page

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