IRDAI: Traffic violators should pay higher insurance premium

The new premium is likely to be called “Traffic Violation Premium” and will vary depending on the offence committed.

Your driving habits will now decide the insurance premium that needs to be paid. According to a media report, the Insurance Regulatory and Development Authority of India (IRDAI) has suggested that those who violate traffic rules should pay more insurance premium. This new premium is likely to be called “Traffic Violation Premium”.

The amount of traffic violation premium that needs to be paid will depend on the number of violation points collected. Different types of offences have different points. The penalty points for drinking and driving will be the highest at 100 points, while that for wrong parking will be 10 points.

The traffic challan data is stored on National Informatics Centre (NIC) and will be shared with the Insurance Information Bureau of India (IIB) on a daily basis.

Every motor insurance buyer will be assessed for traffic violation points. The premium will be paid by the owner of the vehicle, regardless of who the owner of the vehicle is (individual or a company). The traffic violation points will be on the vehicle and not the person. So, if the owner buys a new car, the violation points will be reset to zero regardless of previous offences. Points will be added to the new car if there are any violations. If a car is sold and the insurance of a vehicle is transferred, the violation points will be reset to zero.

A pilot run is expected to be held in the National Capital Territory (NCT). The traffic police have been collecting traffic violation data of vehicles, which means the violation premium could be levied as soon as the pilot begins. If out-of-state drivers commit an offence in the NCT region during the pilot run, they will get violation points as well.

Source: Read Full Article