New Delhi: Lieutenant Governor of Delhi, VK Saxena, has put forward a proposal to the Union Finance Minister, Nirmala Sitharaman, suggesting a reform in vehicle insurance premiums. The proposal aims to link insurance costs to the number of traffic violations committed by vehicle owners, a move that could result in higher premiums for those with a record of offenses such as speeding or reckless driving.Saxenas proposal for tiered insurance systemIn a letter to the Union Finance Ministry, Saxena proposed a tiered insurance model where drivers with a history of traffic violations would face higher insurance premiums. The LG believes that this approach could promote safer driving practices across India, making drivers more responsible. He further stated that by aligning insurance costs with the actual risks posed by drivers, this system could reduce the financial burden on insurance companies caused by frequent claims.Saxena noted that similar systems are already in place in countries like the US and across Europe, where tying insurance premiums to traffic violations has significantly improved driver behavior and reduced accident rates.The growing concern of traffic violations and accidentsSaxena highlighted alarming statistics from the Ministry of Road Transport and Highways, which showed a sharp rise in accidents caused by speeding and red-light violations. According to the data, such infractions are among the leading contributors to fatal accidents in India.A 2022 World Bank study reinforced the link between repeated traffic violations and the likelihood of serious crashes. India recorded over 437,000 road accidents in that year alone, resulting in approximately 155,000 deaths. Speeding accounted for nearly 70% of these incidents, with red-light violations also significantly contributing to the grim toll.Higher risk for frequent violatorsThe World Banks analysis found that vehicles with multiple traffic offenses are 40% more likely to be involved in fatal accidents compared to those with no history of violations. This data strengthens the argument for Saxenas proposed reform, which aims to deter frequent offenders and reduce the risk of severe accidents.Delhis traffic data supports the proposalTo further support his suggestion, Saxena referred to traffic data from the Delhi Traffic Police. A 2023 report revealed that 60% of fatal road accidents in Delhi involved vehicles that had previously been fined for traffic offenses, primarily for speeding and running red lights. The report also found that vehicles with more than three traffic tickets in a single year were disproportionately involved in serious accidents.By introducing higher premiums for such drivers, Saxena believes the system could not only improve road safety but also provide a financial incentive for better driving behavior.
