IRDA forms panel to link motor premium with traffic violations

It is perceived that linking Insurance premium to traffic violations committed could reduce road accidents and change driver behavior said IRDAI.



The insurance regulator IRDAI has asked the insurance companies to undertake a pilot project in NCT, Delhi to implement the premium escalation formula for registered owners/drivers of motor vehicles involved in traffic offences.


The regulator has constituated a  working group under the chairmanship of Anurag Rastogi, chief actuary & chief underwriting officer, HDFC Ergo General Insurance company  to examine the establishing of a system of linking of motor insurance premium with traffic violations.


The panel, composed of officials of Delhi Traffic Police, IRDAI, Insurance Information Bureau of India (IIBI) and feneral insurance companies, is expected to submit its report in eight weeks’ time from the date of this order. .


It is perceived that linking Insurance premium to traffic violations committed could reduce road accidents and change driver behavior said IRDAI.


According to the IRDAI the Government of India is  focussing on Intelligent Traffic Management System in the Metropolitan and Smart Cities.


In view of this, the Automated Traffic Enforcement and violations of Motor Vehicles Act through e-Challan have been initiated to take action against Registered Owners/Drivers of Motor Vehicles involved in traffic offences.


In this regard, the High Powered Committee for Traffic Management in the National Capital Territory (NCT) of Delhi under chairmanship of union home secretary requested Insurance the IRDAI to examine the issue of linking insurance premium with traffic violations.


Subsequently, in a meeting held under the chairmanship of special commissioner of police, Traffic, Delhi on Integration of Insurance and Traffic Prosecution Data, it was decided that a working group will be formed to take the idea forward.


Among other issues, the working group will recommend implementation framework and methodology to link insurance premium with traffic violations,

-to study International practices on the above subject and recommend best practices suitable to India, .

-to evaluate the current point system for traffic violations implemented by States and evolve standard point system considering each traffic violations.

-to develop data fields required to implement traffic violations as rating factor in Motor Insurance.

-to suggest system of access to traffic violation history data of each vehicle and transfer of data from enforcement authorities to IIBI database.

-to suggest modalities for carrying out an immediate pilot project at NCT of Delhi.

-to consider any other aspect relating to the subject.


Some of the members are  Rakesh Paweriya, DANIPS, DCP/Traffic (Central Range), Delhi Traffic Police, Member,  Ravinder Soni, DANIPS, ACP/Traffic (Engineering), Delhi Traffic Police, Anjitha Chepyala, DANIPS, ACP/Traffic (Headquarters), Delhi Traffic Police, Member,  Vinay Verma, Deputy General Manager, The Oriental Insurance Co. Ltd., . Pankaj Jain, vice President and head of Motor Underwriting, Bajaj Allianz General Insurance, Amitabh Jain, head - customer service motor, ICICI Lombard General Insurance Co..