Delhi LG suggests linking vehicle insurance premiums to traffic violations for road safety

In a significant push to enhance road safety and deter traffic violations, Delhi Lieutenant Governor VK Saxena has written to Union Finance Minister Nirmala Sitharaman, proposing that vehicle insurance premiums be linked to the number of recorded traffic offenses. This initiative aims to create a more responsible driving culture and could have profound implications for road safety nationwide.

In his letter, Saxena highlighted successful implementations of similar measures in countries such as the United States and various European nations. He stated, “I would like to suggest that insurance premium should be index linked with the number of traffic violations recorded against a vehicle, which would have a salutary impact on road safety and traffic discipline.” His proposal comes in response to alarming statistics from the Ministry of Road Transport and Highways (MoRTH), which reported over 4.37 lakh road accidents in India in 2022, resulting in approximately 1.55 lakh fatalities.

The data reveals that over-speeding accounted for nearly 70 percent of these accidents, with other violations like red-light jumping also contributing significantly to fatal incidents. Saxena further cited a World Bank analysis indicating that vehicles with multiple traffic violations face a 40 percent higher risk of fatal crashes than those with clean records. This connection between traffic offenses and accident risks underscores the need for a systematic approach to road safety.

In addition, a report from the Delhi Traffic Police indicated that 60 percent of fatal road accidents involved vehicles that had been previously fined for traffic violations, particularly for over-speeding and red-light jumping. Saxena suggested introducing a layered insurance premium system that reflects the frequency and severity of traffic violations recorded in MoRTH's VAHAN database. He emphasized that vehicles frequently flagged for offenses should be required to pay higher insurance premiums, thus incentivizing safer driving behaviors and potentially reducing accident rates.