Traffic violation premium shall be payable by the registered owner of the vehicle, whether an individual or an entity.
A working committee group appointed by insurance regulator IRDAI has recommended introducing a new section in the motor insurance premiums that lead to a significant decrease in traffic violations. The committee recently submitted its report on the prospect of linking motor insurance premiums with traffic violations.
This means you could have to pay a heftier fine in case you violate any traffic rule. The committee recommended inserting a new section to Motor Insurance called ‘Traffic Violation Premium’ or TVP in addition to the four sections — Own Damage insurance, the mandatory Basic Third-Party insurance, Additional Third-Party insurance and Compulsory Personal Accident Premium.
"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 exposure draft issued by Insurance Regulatory and Development Authority of India (IRDAI).
IRDAI has invited inputs of all stakeholders on the recommendations till February 1, 2021.
"Traffic violation premium shall be payable by the registered owner of the vehicle, whether an individual or an entity. Effectively this means that the owner will take full responsibility for the traffic violations caused by the authorized vehicle driver," it said.
As per the table of offences provided by the working group, drinking driving will attract the highest penalty of 100 points, while wrong parking will have 10 points penalty. The amount of premium will be linked to these penalty points.
The nine-member committee appointed by the IRDAI said that the TVP will be linked to a system of penalty points accumulated by vehicles for each traffic violation over the past two years.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Traffic violation")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}