Link traffic offences with insurance premium: IRDAI committee
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Venkatachari Jagannathan ( IANS) |
Published on
Tue, Jan 19 2021 19:12 IST |
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Link traffic offences with insurance premium: IRDAI committee. Image Source: IANS News
Chennai, Jan 19 : Fined for parking in the no-parking area a couple of times? Be ready to pay an increased insurance premium for the traffic violation.
But don t ask how parking in no-parking area would increase the accident rate and the claims outgo for the insurers.
A Working Group set up by the Insurance Regulatory and Development Authority of India (IRDAI) submitted its report on Monday, recommending linking of motor insurance premium to various traffic violations that ranges from parking in no-parking areas to drunken driving.
Repeat traffic offender? IRDAI panel recommends higher motor premiums for you
There will be a points system maintained for every violation and those with higher points will pay additional premium. Incidents like drunk driving and over-speeding/racing will attract higher violation points.
Traffic
If you are a repeat traffic offender and have been penalised for violations while driving your car/bike, soon you will end up paying higher motor insurance premiums.
A working group set by Insurance Regulatory and Development Authority of India (IRDAI) has recommended that a traffic violation premium section be inserted into motor insurance.
This section will float over both own damage and third party segments. This means that irrespective of the motor cover sought by a customer, he/she will be subjected to traffic violation premium depending on their driving behaviour.
Higher insurance premium on cards for vehicles violating traffic rules
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IRDAI panel for introducing a new points-based Traffic Violation Premium
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The recommendation of higher premium for vehicles violating traffic rules is aimed to serve as a deterrent for reckless motor drivers.
| Photo Credit: SARINYAPINNGAM
IRDAI panel for introducing a new points-based Traffic Violation Premium
Traffic violations may soon become a costlier affair for vehicle owners with a working group of insurance regulator IRDAI recommending for introduction of a new section in motor insurance called Traffic Violation Premium.
It will be in addition to Own Damage, the mandatory Third Party, additional TP and compulsory personal accident premium. This section can be attached to any motor insurance cover being purchased, chiefly, OD or TP insurance, the Working Group’s report said. The Traffic Violation Premium will be linked to a system of penalty points accumu
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