IRDAI looks to hike motor insurance premiums for traffic violations
09 September 2019
In a move that could drive away vehicle buyers, the Insurance Regulatory and Development Authority of India (IRDAI) is looking at the possibility of linking of motor insurance with traffic violations – the higher the premium the more such traffic violations involving the vehicle.
- Recommend implementation framework and methodology to link insurance premium with traffic violations;
- Study international practices on the subject and recommend best practices suitable to lndia;
- Evaluate the current point system for traffic violations implemented by states and evolve standard point system considering each traffic violations;
- Develop data fields required to implement traffic violations as rating factor in motor insurance;
- Suggest system of access to traffic violation history data of each vehicle and transfer of data from enforcement authorities to llBl database; and
- Suggest modalities for carrying out an immediate pilot project at NCT of Delhi.