Delhi Lieutenant Governor, V K Saxena has reached out to Union Finance Minister Nirmala Sitharaman, requesting a policy revision that would result in higher insurance premiums for vehicles with a record of traffic violations.
In a letter sent last week, Saxena emphasized that imposing a financial penalty could encourage safer driving habits, noting the link between repeated traffic offenses and the likelihood of accidents.
“I would, therefore, recommend the introduction of a tiered insurance premium system, based on the frequency and severity of traffic violations as recorded in MoRTH’s VAHAN database,” the letter stated.
Referring to a 2023 report from the Delhi Traffic Police, Saxena highlighted that 60% of fatal road accidents involved vehicles that had previously been penalized for traffic violations, particularly for speeding and red-light violations. He pointed out that vehicles with more than three traffic challans in a year showed a higher involvement in serious accidents.
He also cited World Bank analysis of accident data, which suggests that vehicles with multiple traffic offenses have a 40% greater likelihood of being involved in fatal crashes compared to those with a clean driving history. Saxena further encouraged Sitharaman to collaborate with the Insurance Regulatory and Development Authority of India to create a system for index-linked insurance premiums. This approach, driven by financial deterrents and already practiced in the US and European nations, would foster more responsible driving, thus reducing accidents, he said.