In a bid to improve road safety and reduce traffic violations, Delhi lieutenant governor VK Saxena has suggested linking vehicle insurance premiums to the number of recorded traffic offences. He made the proposal in a letter to Union finance minister Nirmala Sitharaman, advocating for a system where drivers with multiple violations would face higher insurance premiums.
Saxena pointed out that similar measures have been effective in countries like the United States and Europe, where insurance costs rise for drivers who commit traffic offences. He argued that such a policy could have a significant impact on road safety in India, which saw over 4.37 lakh road accidents in 2022, resulting in 1.55 lakh fatalities.
Over-speeding and red-light jumping were major contributors to these accidents. Saxena noted that 60 percent of fatal accidents in Delhi involved vehicles that had previously been fined for similar violations, highlighting the need for a layered insurance premium system. Vehicles with a history of offences would pay higher premiums, encouraging drivers to follow traffic laws more strictly.
This proposal aims to create a financial deterrent for traffic offenders, following the model in the US where premiums can increase by 20 percent to 30 percent for repeat violations. The Delhi LG believes such a system would promote better driving behaviour and significantly reduce road accidents.
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