India: Regulator forms working group to link motor premiums with traffic violations

The group will also suggest modalities for carrying out a pilot project on this linkage in the National Capital Territory of Delhi.

The setting up of the panel followed a request to the IRDAI from the High Powered Committee for Traffic Management in Delhi, under the chairmanship of the Union Home Secretary, to examine the issue of linking insurance premiums with traffic records. The move is expected to improve compliance with rules and pave the way for more business for insurers.

Listing the terms of reference of the nine-member working group, the IRDAI said the panel would recommend implementation of a framework and methodology to link insurance premiums with traffic violations.

The group will study international practices and recommend best practices suitable to India. It will evaluate the current point system for traffic violations implemented by states and evolve a standard point system considering each violation.

Other terms of reference include developing data fields required to apply traffic violations as a rating factor in motor insurance and suggesting an access system to the traffic record of each vehicle and transfer of data from enforcement authorities to the Insurance Information Bureau of India.