In a bid to investigate and suggest linking of motor premiums with traffic violation, IRDAI has, set up a working group on the request of government. For the purpose of implementing the premium escalation formula, insurance companies will have to undertake a pilot project in the National Capital Territory (NCT), Delhi, according to an order issued by IRDAI on September 6.
As the working group is tasked with submitting its report within 2 months of the IRDAI order, bad drivers may face a double whammy soon as penalties for traffic violations have already gone up sharply.
According to the IRDAI order, “The Government of India is focusing on Intelligent Traffic Management System in the Metropolitan and Smart Cities. In view of this, the Automated Traffic Enforcement and violations of the Motor Vehicles Act through eChallan have been initiated to take action against Registered Owners/Drivers of Motor Vehicles involved in traffic offences. It is perceived that linking Insurance premium to traffic violations committed could reduce road accidents and change driver behaviour.”
