Delhi LG VK Saxena said that this move may encourage safer driving and create a more responsible attitude among drivers in India. He added that such a system would not only make insurance costs reflect the real risks associated with drivers, but also lessen the financial strain on insurance companies from frequent claims.
Delhi LG VK Saxena has suggested linking vehicle insurance premiums to the number of traffic violations each vehicle has.
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New Delhi: Lieutenant Governor, VK Saxena, has approached Union Finance Minister Nirmala Sitharaman, and suggested a new approach to vehicle insurance premiums. He proposed linking these premiums to the number of traffic violations each vehicle has. In his letter to the Union Finance Minister, Delhi LG suggested a tiered insurance system that would charge higher premiums for vehicles with a history of traffic offenses, such as speeding and reckless driving.
Saxena emphasised that this may encourage safer driving and create a more responsible attitude among drivers in India. He added that such a system would not only make insurance costs reflect the real risks associated with drivers, but also lessen the financial strain on insurance companies from frequent claims.
He added that similar systems are already in place in the US and European countries, where it has helped improve driving behavior and reduce accidents. Saxena also highlighted alarming statistics from the Road Transport and Highways Ministry, noting a rise in speeding and running red lights, which are major contributors to fatal accidents.
Traffic violations and road mishaps
A World Bank study also highlighted the connection between multiple traffic violations and an increased risk of serious crashes. In 2022, India recorded over 437,000 road accidents, leading to around 155,000 deaths. Notably, speeding was responsible for nearly 70 per cent of these road mishaps, with red-light violations also playing a significant role in fatal accidents.
The World Bank’s analysis revealed that vehicles with multiple traffic offenses have a 40 per cent greater chance of being involved in deadly crashes compared to those with clean records.
To back his suggestion, Delhi LG Saxena highlighted Delhi’s accident data. A report from the Delhi Traffic Police in 2023 indicated that 60 per cent of fatal road accidents involved vehicles that had previously been fined for traffic offenses, particularly for speeding and running red lights. In addition to this, vehicles that received over three traffic tickets in a year were found to be significantly more involved in severe accidents.
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