Poor Driving Can Increase Your Insurance Premium, IRDAI Suggests Traffic Violation Premium
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A working group set up by regulator IRDAI has suggested introduction of Traffic Violation Premium in addition to own damage and third party and other types of motor insurance premium. The group has recommended inserting a fifth section to motor insurance called Traffic Violation Premium in addition to motor own damage insurance, basic third party insurance, additional third party insurance and compulsory personal accident premium. This section will float over both Own Damage and Third Party sections of Motor insurance and can be attached to any section of motor insurance cover being purchased, chiefly, Own Damage or Third Party insurance, said the exposure draft issued by Insurance Regulatory and Development Authority of India (IRDAI). IRDAI has invited inputs of all stakeholders on the recommendations till February 1, 2021.