IRDAI Committee Recommends Higher Insurance Premium for Traffic Offences
Moneylife Digital Team/ IANS
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A working group set up by the Insurance Regulatory and Development Authority of India (IRDAI) has recommended linking of motor insurance premium to various traffic violations that range from parking in the no-parking areas to drunken driving.
As per the report, the motor insurance premium will be increased if the vehicle had been charged by traffic police for violating the traffic laws. The report recommends a system of calculating traffic violation points (TVP) on the basis of frequency and severity of different traffic offences.
The Insurance Information Bureau of India (IIB) will coordinate with various states traffic police and the National Informatics Centre (NIC) to capture the traffic violation data, calculate violation points of each violating vehicle, and make this information available to all general insurers through information technology (IT) system int