GG News Bureau
New Delhi, 25th Sept. Delhi Lieutenant Governor VK Saxena has written to Union Finance Minister Nirmala Sitharaman, proposing that vehicle insurance premiums be linked to the number of traffic violations committed by drivers.
Saxena suggested a tiered insurance premium system that would increase costs for vehicles with a history of violations such as speeding and reckless driving. This system, he said, would serve as a financial deterrent, encouraging safer driving habits and fostering responsible motoring on Indian roads.
In his letter, Saxena noted that such a policy would align insurance costs with the actual risk posed by drivers, reduce the financial burden on insurers, and promote a culture of safer driving. He highlighted practices in the US and Europe where similar systems have led to reductions in accidents and more efficient insurance claim management.
Saxena pointed to alarming data from India’s Road Transport and Highways Ministry, which showed speeding as the cause of nearly 70% of road accidents in 2022, contributing to over 1.55 lakh fatalities.
A World Bank study also showed that vehicles with multiple violations were 40% more likely to be involved in fatal crashes than those with a clean driving record.
Citing Delhi’s 2023 accident statistics, Saxena emphasized that 60% of fatal accidents involved vehicles previously fined for traffic violations.
He urged Sitharaman to collaborate with the Insurance Regulatory and Development Authority of India (IRDAI) to develop a framework for this proposal, which he believes could significantly improve road safety and reduce accidents across the country.
The post Delhi LG Proposes Linking Vehicle Insurance Premiums to Traffic Violations appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates.
