Link traffic offences with insurance: Irdai
Fined for parking in the noparking area a couple of times? Be ready to pay an increased insurance premium for the traffic violation.
But don't ask how parking in no-parking area would increase the accident rate and the claims outgo for the insurers.
A Working Group set up by the Insurance Regulatory and Development Authority of India (Irdai) submitted its report on Monday, recommending linking of motor insurance premium to various traffic violations that ranges from parking in 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 basis 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 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 integration with them.
According to the report, the traffic violation premium may be fixed by the IRDAI and reviewed every three years or earlier as deemed appropriate.
The IRDAI Working Group is a follow-up of a High Powered Committee for Traffic Management in Delhi, under the chairmanship of Union Home Secretary.