You may soon end up paying more car insurance premium for violating traffic rules, here's what you should know
New Delhi | Jagran News Desk: Insurance Regulatory and Development Authority of India is planning to link motor insurance premium with traffic violations, they have also submitted the report.
As per reports, in addition to motor own-damage insurance, additional third-party insurance, basic third-party insurance and compulsory personal accident premium, the committee has recommended inserting a fifth section to motor insurance 'traffic violation premium'.
So people living in not just Delhi-NCR, but also in Uttar Pradesh and Haryana need to be careful while driving otherwise their insurance premium will increase.
It is believed by involving economic interest, that is, by increasing the premium pay will force people to follow the traffic rules. Also, people who drink in the drive will be fined 100 points while for wrong parking it will cost 10 points.
IRDA has asked necessary suggestion from the concerned parties regarding the draft by February 1, 2021.
In this draft, IRDA has also suggested that motor insurance premiums should compensate for the damages, compensate for the losses of third parties and other types of insurance premiums as well as the premiums for self and third party losses. The invoice data for violations of traffic rules will be obtained from the National Informatics Center to the insurance companies. This means that the traffic violation premium will have to be paid by the owner of the vehicle in whose name the vehicle is registered. The owner will take full responsibility for the traffic violations caused by the authorised vehicle driver.
Traffic violation premium will be charged only on the policy date. If the policyholder has already paid traffic violation premium and approaches an insurer to buy an additional cover then they will not need to pay the violation premium all over again, as per reports.
Posted By: Niharika Sanjeeiv