Traffic Violation Premium | IRDAI: Traffic violations may soon be linked with motor insurance premium

Mumbai: Speed thrills but kills – at least your savings.

Very soon, your motor insurance premium may depend on your traffic-ticket count. So, there’s sufficient incentive – besides better mileage – to go easy on the accelerator.

A committee appointed by insurance regulator IRDAI has recommended that traffic violations be linked with motor premiums to encourage better road sense.

The report published Monday by the nine-member working committee suggested inserting “Traffic Violation Premium” to the ambit of motor insurance. The panel included officials from the Delhi Traffic Police, IRDAI, Insurance Information Bureau (IIB) and insurance companies have

“This section will float over both Own Damage and Third-Party sections of motor insurance and can be attached to any section of motor insurance cover being purchased, chiefly, Own Damage or Third-Party insurance,” said the report. “This will ensure, regardless of any insurance cover a motor owner wants to buy, he/she will be subjected to Traffic Violation Premium, unless he already has in force a motor insurance policy wherein traffic violation premium has already been paid.”

In practice, every motor insurance buyer will be assessed for traffic violation points based onwhich the premium will be fixed.