Delhi L-G for linking vehicle insurance to traffic violations

Lieutenant-Governor (L-G) VK Saxena on Wednesday wrote a letter to Union Finance Minister Nirmala Sitharaman, proposing a change in the structure of vehicle insurance premiums in India. He suggested that premiums be linked to the number of traffic violations committed by vehicle owners, drawing a parallel to similar practices in the US and Europe.He said the initiative aimed to enhance road safety and reduce accidents in the country.

In his letter, Saxena stated, “I would like to suggest for your consideration that insurance premium should be index linked with the number of traffic violations recorded against a vehicle, which would have a salutary impact on road safety and traffic discipline.”

He said this financial deterrent would promote safer driving behaviour and improve overall road discipline.

Saxena said according to the Ministry of Road Transport and Highways, India recorded over 4.37 lakh road accidents in 2022, resulting in approximately 1.55 lakh fatalities.

Notably, overspeeding accounted for nearly 70 per cent of these accidents, while violations such as red-light jumping contributed significantly to fatal accidents.

Citing a 2023 report of the Delhi Traffic Police, Saxena said 60 per cent of fatal road accidents involved vehicles that had previously been fined for violations, primarily for overspeeding and red-light jumping.

Saxena advocated for a tiered insurance premium system based on the severity and frequency of violations, suggesting that a vehicle that has been frequently challenged for offences such as overspeeding, red-light jumping and dangerous driving should be obligated to pay the higher insurance premium.