Delhi Proposes Higher Insurance Premiums to Crack Down on Traffic Violations

Delhi Lieutenant Governor VK Saxena proposes higher insurance premiums for vehicles with frequent traffic violations in a letter to Finance Minister Nirmala Sitharaman. He suggests index-linked premiums based on traffic infractions to promote safer driving. Statistics from the Delhi Traffic Police and World Bank highlight the correlation between traffic violations and accidents.

Delhi Lieutenant Governor VK Saxena has urged Finance Minister Nirmala Sitharaman to consider a stringent road safety measure aimed at imposing higher insurance premiums on vehicles with a history of traffic violations.

In a recent letter, Saxena outlined that vehicles frequently penalized for offenses like over-speeding, red light jumping, and dangerous driving should face elevated insurance costs. He argued that this financial deterrent would encourage better driving behavior, citing data from the Ministry of Road Transport and Highways (MoRTH).

According to Saxena, aligning insurance premiums with the number of traffic violations recorded in the MoRTH's VAHAN database could significantly enhance road safety. The proposal is backed by the 2023 Delhi Traffic Police report, revealing that 60% of fatal accidents involved vehicles previously fined for violations. This policy, already successful in countries like the US and parts of Europe, aims to save lives and manage insurance claims more efficiently.

(With inputs from agencies.)