Delhi’s traffic violators might soon face higher vehicle insurance premiums. The city’s Lieutenant Governor, VK Saxena, recently sent a proposal to Union Finance Minister Nirmala Sitharaman, suggesting that insurance costs be linked to the number of traffic violations registered against a vehicle. The proposal aims to improve road safety by promoting better driving habits.
High accident rates linked to over-speeding and red-light jumping
In his letter, Saxena highlighted the alarming accident statistics in India. According to the Ministry of Road Transport and Highways (MoRTH), India witnessed more than 4.37 lakh road accidents in 2022, leading to over 1.55 lakh deaths. He pointed out that nearly 70% of these accidents were caused by over-speeding, with red-light violations being a major factor in many fatal crashes.
Citing research from the World Bank, Saxena added that vehicles with frequent traffic violations are 40% more likely to be involved in serious accidents compared to those with clean records. The data from Delhi’s roads further supports these findings, showing a clear connection between repeat offenders and the risk of accidents.
Proposal to introduce tiered insurance premiums for violators
Saxena’s proposal suggests that insurance premiums be adjusted based on the frequency and severity of traffic violations. He proposes a tiered system, where vehicles with multiple warnings for over-speeding, red-light violations, or dangerous driving would face higher insurance costs. This system would be linked to MoRTH’s VAHAN database, which keeps track of traffic violations.
The idea is to create a financial incentive for drivers to follow traffic rules. By increasing the insurance premium for frequent violators, it is hoped that this will act as a deterrent and encourage safer driving habits.
International examples show success in linking violations with insurance premiums
In his letter, Saxena pointed out that this system is already in place in countries like the United States and several European nations. In these regions, drivers with repeated violations often see an increase of 20-30% in their insurance premiums. These countries have successfully used this approach to reduce traffic violations and improve overall road safety.
