Follow Traffic Rules - Get Incentives by RTO

As traffic in every part of the country is increasing by many folds, the government and the departments are taking all possible measures to increase the safety of all drivers. If everyone follows the traffic rules, the number of accidents on the roads will considerably reduce. To encourage more people to follow good road manners, the RTO decides to give incentives for following traffic rules.

Expected Change in Traffic Rule

As per this rule which should come into force soon, if any person has not violated any traffic rules in five years, he or she will be eligible to get a discount on the insurance premium. On Tuesday (5th February 2019), a safety workshop was held, where Shekhar Channe, the State Transport Commissioner gave these recommendations.

The Insurance and Regulatory Authority of India (IRDAI) will now get recommendations from the Transport Authority about low insurance premium based on the record of following good road manners. All those people, who have often offended traffic rules, will need to pay a higher premium for the insurance of their vehicles. This move should act as a deterrent and the payment of higher amount as premium would ensure that these people start to take the traffic rules seriously.

In the safety workshop, Channe also said, that it will now be compulsory for all bike and scooter dealers to provide helmets to all the buyers of two wheelers. He said that helmets are lifesaving gears, and should be provided at the time of the purchase and there should be no charges for it. It was suggested that each buyer gets two helmets and if this rule is not complied with, complaints can be lodged in the local RTO office.

Figures prove that there are about 70% fewer injuries when helmets are used by the people on two wheelers. There is also a proposal to identify the areas of high risk for mishaps and put the same on the websites for the information of all.

The Scenario Now

In India, as of now, the pricing of the insurance premium is based on the vehicle and not the driver. Thus, in the present scenario, the data for violation of rules will only be used as peripheral data. As per Sanjay Dutta, ICICI Lombard's Chief of Underwriting and Claims, this data will help find out the frequent violators, but will not affect the pricing of the policy at large. In countries like the USA, the pricing of insurance is based on the driver and not the car, and thus, data about violations help immensely.

The Anticipated Collaboration

The IRDAI works on the insurance matters including pricing in the country and the RTO is responsible for rules of road, driving licenses etc. apart from many other duties. If this proposal is accepted, both the authorities will have to work together to ensure proper implementation. The calculation for insurance will need to be changed to incorporate the data and ensure the violations affect the premium.

Bottomline

Driving any vehicle in India without a Third-party Liability insurance is illegal and mostly, everyone also buys the Own Damage component to safeguard themselves against any financial loss in case of an accident. If the violation of rules, affects the premium, it is highly possible that people will start driving more safely and follow rules as they would not like to pay a higher insurance premium. Such rules and policies are needed in the country to reduce the number of accidents and also improve the traffic situation. Thus, when the RTO decides to give incentives for following traffic rules, it will become safer and better to drive on Indian roads.

Note* In India, as of now, the pricing of the motor insurance premium is based on the vehicle and not the driver.

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