Delhi LG proposes higher vehicle insurance premiums for those having history of traffic violations

Asking the Union Minister to consider his proposal for a tiered insurance premium system, he said it would directly reflect drivers' behavior.

Vehicles with a history of violations, including overspeeding, reckless driving, or other traffic offences would be required to pay higher premiums if the proposal is approved.

Under this scheme, the premium would be incentivised for safe driving practices and foster a culture of responsible motoring on Indian roads, the Lieutenant Governor said.

Saxena, in his letter, stated that implementing such a system would not only align insurance costs with the actual risk posed by drivers but would also reduce the financial burden on insurers resulting from frequent claims.

The letter cited recent data from the Road Transport and Highways Ministry that reported a disturbing trend of speeding and red-light jumping, which led significantly to fatal accidents.

India recorded over 4.37 lakh road accidents in 2022, resulting in approximately 1.55 lakh fatalities. Notably, speeding accounted for nearly 70 percent of these accidents.

To back his proposal, Saxena also highlighted Delhi's accident statistics that corroborated these findings.

According to a 2023 report from the Delhi Traffic Police, 60 percent of fatal road accidents involved vehicles that had previously been fined for traffic violations like overspeeding and red-light jumping.

Vehicles with more than three traffic challans in a given year were found to have disproportionately high involvement in severe accidents.