IRDAI to link insurance premium with traffic violations

IRDAI to link insurance premium with traffic violations

Representative Image. (PTI Photo)

Drivers may face a double whammy soon as the Insurance Regulatory Authority of India (IRDAI) is planning to set up a working group to examine linking of motor insurance premiums with traffic violations.

With this decision, the IRDAI aims to curb road accidents and change the driver behavior, according to a report The Economic Times.

"The Government of India is focusing on Intelligent Traffic Management System in the Metropolitan and Smart Cities. In view of this, the Automated Traffic Enforcement and violations of the Motor Vehicles Act through e-Challan have been initiated to take action against Registered Owners/Drivers of Motor Vehicles involved in traffic offenses. It is perceived that linking Insurance premium to traffic violations committed could reduce road accidents and change driver behavior," the IRDAI order stated.

Recently the government made certain changes in the Motor Vehicles Amendment Bill effective from September 1, 2019, that have levied heavy penalties for traffic violations.