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
Synopsis
A committee appointed by insurance regulator IRDAI has recommended that traffic violations be linked with motor premiums to encourage better road sense. The report published Monday by the nine-member working committee suggested inserting “Traffic Violation Premium” to the ambit of motor insurance.
In practice, every motor insurance buyer will be assessed for traffic violation points based onwhich the premium will be fixed.
Mumbai: Speed thrills but kills – at least your savings.
Very soon, your motor insurance premium may depend on your traffic-ticket count. So, there’s sufficient incentive – besides better mileage - to go easy on the accelerator.
A committee appointed by insurance regulator IRDAI has recommended that traffic violations be linked with motor premiums to encourage better road sense.
Synopsis
A committee appointed by insurance regulator IRDAI has recommended that traffic violations be linked with motor premiums to encourage better road sense. The report published Monday by the nine-member working committee suggested inserting “Traffic Violation Premium” to the ambit of motor insurance.
In practice, every motor insurance buyer will be assessed for traffic violation points based onwhich the premium will be fixed.
Mumbai: Speed thrills but kills – at least your savings.
Very soon, your motor insurance premium may depend on your traffic-ticket count. So, there’s sufficient incentive – besides better mileage - to go easy on the accelerator.
A committee appointed by insurance regulator IRDAI has recommended that traffic violations be linked with motor premiums to encourage better road sense.
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.
UPDATED: January 19, 2021 16:11 IST
Vehicles that have collected higher penalty points for traffic violation in the past two years will have to pay more towards motor insurance premiums. (Photo: PTI/Representational image)
A working group committee appointed by the insurance regulator IRDAI has recommended introducing a new section in motor insurance premiums for reducing traffic violations. The committee recently submitted its draft report on the prospect of linking motor insurance premiums with traffic violations.
In a draft proposal, the committee has recommended inserting a new section to Motor Insurance called ‘Traffic Violation Premium’ or TVP in addition to the four sections Own Damage insurance, the mandatory Basic Third-Party insurance, Additional Third-Party insurance and Compulsory Personal Accident Premium.