Delhi LG Proposes Higher Insurance Premiums for Traffic Violators

Linking vehicle insurance premiums to traffic violations aims to improve road safety and reduce accidents in India.

Delhi Lieutenant Governor VK Saxena has recommended linking vehicle insurance premiums to the number of traffic violations recorded against a vehicle.
The proposal suggests a tiered premium system where vehicles with a history of speeding, reckless driving, or other offences would pay higher insurance rates.
India recorded over 4.37 lakh road accidents in 2022, with speeding accounting for nearly 70% of these incidents.
A World Bank study indicates vehicles with multiple traffic violations have a 40% higher risk of fatal crashes compared to those with clean records.
The Delhi Traffic Police report from 2023 shows that 60% of fatal accidents involved vehicles previously fined for traffic violations, primarily speeding and red-light jumping.