More than 4.37 lakh road accidents were recorded in India in 2022.
New Delhi:
Delhi Lieutenant Governor VK Saxena has written to Union Finance Minister Nirmala Sitharaman asking her to link car insurance premiums with the number of traffic violations registered against vehicles.
He asked Ms. Seetha Raman to consider his proposal for a tiered insurance premium system that directly reflects the driving behavior of drivers. Vehicles with a history of violations, including speeding, reckless driving, or other traffic offenses will pay higher premiums. The Lt. Governor said that this monetary barrier will encourage safe driving practices and promote a culture of responsible motoring on Indian roads.
In his letter, Mr. Saxena stressed that implementing such a system would not only bring the cost of insurance in line with the actual risk faced by drivers but also reduce the financial burden on insurers resulting from frequent claims. .
The Lt. Governor said that this monetary deterrence mechanism, which is practiced in the US and European countries, will promote responsible driving behavior, which will reduce accidents, save lives and lead to more efficient management of insurance claims. will be ensured.
The letter cited recent data from the Ministry of Road Transport and Highways which found a disturbing trend of speeding and red light jumping, which contributed to fatal accidents. A comprehensive study by the World Bank further highlighted the link between multiple traffic violations and increased risk of serious accidents and emphasized the need for urgent action.
India recorded more than 4.37 lakh road accidents in 2022, resulting in about 1.55 lakh deaths. Notably, about 70 percent of these accidents were caused by speeding, while violations such as red light jumping contributed to fatal accidents.
An analysis of accident data by the World Bank shows that vehicles with multiple traffic violations have a 40 percent higher risk of being involved in fatal accidents than those with a clean driving record.
In support of his proposal, the Lt. Governor also highlighted Delhi's accident statistics which corroborate these findings. According to a 2023 Delhi Traffic Police report, 60 percent of fatal road accidents involved vehicles that had previously been fined for traffic violations, mainly speeding and red light jumping. Vehicles with more than three traffic violations in a year were found to be disproportionately more involved in serious crashes.
The Lt. Governor asked the Union Finance Minister to involve the Insurance Regulatory and Development Authority of India (IRDAI) to take immediate action for a framework for index-linked insurance premiums.
By implementing this policy, India can take a significant step towards creating safer roads, saving lives and ensuring a more sustainable transport system for future generations, the letter said.