In an order dated 6 September, the Insurance Regulatory and Development Authority of India (IRDAI) has set a Working Group to examine the establishment of a system of linking of motor insurance premium with traffic violations on a pilot basis in the National Capital Territory, Delhi.
Following the implementation of the Motor Vehicles Amendment Act on 1 September in the Delhi region, e-challans are being issued against owners and drivers involved in the violation of traffic rules through the Automated Traffic Enforcement. IRDAI has been receiving suggestions that linking insurance premium to traffic violations committed, as followed in developed countries like the US, could reduce road accidents and improve driving behaviour among Indians.
"ln this regard, the High Powered committee for Traffic Management in the National capital rerritory (NCT) of Delhi under chairmanship of Union Home secretary requested lnsurance Regulatory and Development Authority of lndia (lRDAl) to examine the issue of linking insurance premium with traffic violations. subsequently, in a meeting held under the chairmanship of special Commissioner of Police: Traffic, Delhi on lntegration of lnsurance and Traffic Prosecution Data, it was decided that a Working Group will be formed to take the idea forward," the order said.
The Working Group has to submit its report in eight weeks time from the date of the order.