Mumbai: The Insurance Regulatory and Development Authority (IRDA) has prepared draft guidelines for linking the motor insurance with traffic rule violations to determine the premium. The IRDA published the report of the working committee which was appointed to conduct a study in this regard, for collecting public opinion.
Certain points have been fixed for each type of rule violation. The extra premium will be determined on the basis of this. More points will be given to drunken driving. The committee has recommended to decide the premium after considering the seriousness of traffic rule violations made by the vehicle owner.
The amount of premium for the damage of vehicle, third party insurance and compulsory personal accident insurance will be decided on the basis of the rule violations. Even if the driver violated rules, the owner will be held responsible.
When general insurance companies are approached to buy or renew motor insurance, they will have to examine if the vehicle has violated traffic rules in the past. The IRDA has directed the companies to arrange facilities for this inspection.
The premium will be decided considering the vehicle rather than who drives it. If the driver had violated traffic rules in the past, it will not affect the premium. Also the previous history will be avoided when the vehicle is sold for the second time.
The Insurance Information Bureau will be assigned to collect data and regulations as part of implementing the new system. They will work together with the state traffic police and National informatics Centre and make data available for the companies.
The new changes will be first implemented in Delhi on a trial basis. Even if people from other states violate traffic rules in Delhi, it will be included in the insurance premium. The IRDA has directed in the draft guidelines that the suggestions should be submitted within February 1.
| Traffic rule violation | Point |
| Drunken driving | 100 |
| Dangerous driving | 90 |
| Disobeying police | 90 |
| Overspeed | 80 |
| Driving without license and insurance | 70 |
| Wrong track | 60 |
| Loading dangerous objects | 50 |
| Signal violation | 50 |
| Overload | 40 |
| Security rule violation | 30 |
| Vehicle modification | 20 |
| Parking rule violation | 10 |
Published: 24 Jan 2021, 08:23 am IST
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