News Regulations30 Sep 2024

India:Finance Minister urged to correlate insurance premiums with traffic violations

| 30 Sep 2024

A proposal has been sent to Finance Minister Nirmala Sitharaman to link insurance premiums of vehicles to the number of traffic violations recorded against the vehicles.

Delhi lieutenant-governor Mr VK Saxena, who made the proposal in a letter, asked Ms Sitharaman to consider his proposal for a tiered insurance premium system that directly reflects the driving behaviour of drivers, reported NDTV.

Vehicles with a history of violations, including speeding, reckless driving, or other traffic offences would be required to pay higher premiums. This would foster a culture of responsible motoring on Indian roads, Mr Saxena said.

The letter mentioned recent data from the Road Transport and Highways Ministry that found a disturbing trend of speeding and red-light jumping, which contributed significantly to fatal accidents.

To back up his suggestion, Mr Saxena highlighted Delhi's accident statistics. According to a 2023 report of the Delhi Traffic Police, 60% of fatal road accidents involved vehicles that had previously been fined for traffic violations, primarily speeding and red-light jumping.

To read the original article, please click here.

| Print
CAPTCHA image
Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.

Other News

Follow Asia Insurance Review