• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Advertisement
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Environment

Linking motor insurance premium with traffic violations

March 8, 2021
in Environment
Reading Time: 3 mins read
0
Linking motor insurance premium with traffic violations
48
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook

In News

  • The Insurance Regulatory and Development Authority of India (IRDAI) released the Report of the Working Group to examine and recommend linking of motor insurance premium with traffic violation for public feedback.
  • The Group was constituted in September 2019.

Key recommendations of the Group include:

  • Traffic violation premium
    • The Group recommended that insurers add traffic violation premium to motor insurance. When a new vehicle is insured, it will attract no traffic violation premium, even if the owner of the vehicle has a history of traffic violation. 
    • For a second-hand vehicle, traffic violation premium will reset to zero and build according to traffic violations after the transfer of ownership. 
  • Traffic violation points
    • Traffic violation premium will be based on traffic violation points.Points will be calculated on the basis of frequency and severity of traffic offences. 
    • Points range from 10 for wrong parking, to 100 for drunk driving.  
    • Enhanced penalties will be levied for repeat violations.
    • For example, if a vehicle has three offences of wrong parking, then the total violation points will be 60 (10 points for the first offence, 20 points for the second offence, and 30 points for the third offence).  
  • The Group also recommended the amount of premium to be charged for two and three-wheelers, and four-wheelers, for various levels of traffic violation points. 
  • Length of impact
    • Traffic violation history will affect the motor insurance premium for two years. 
    • If a vehicle does not cause any violation for two years, the violation history will be reset to zero.
  • Technical infrastructure
    • The Insurance Information Bureau of India (IIB) already collects data on insured vehicles from insurance companies.
    • The IIB will coordinate with the traffic police of various states to capture traffic violation data.  IIB will then calculate violation points and share the data with the insurers.
    • It will also store the data on violation points for two years. 
  • Pilot: NCT of Delhi will link motor insurance premium with traffic violations for one year on a pilot basis.  

Insurance Regulatory Development Authority (IRDA)

  • Insurance Regulatory Development Authority (IRDA) is a statutory body set up by the IRDA Act, 1999. 
  • It is an autonomous and apex body which has the responsibility to regulate and control the Insurance sector in India. 
  • Initially, IRDA was set up as an autonomous body headquartered at New Delhi. The headquarters of IRDA was later shifted to Hyderabad, Telangana in 2001. The Government of India appoints the Chairman and other members of the 
  • The responsibilities of IRDA includes making and implementing regulatory rules, guidelines, and classifications along with the developmental and promotional role. IRDA is expected to facilitate the economic growth of the market, protect the interests of policyholders and facilitate a healthy growth of the Insurance sector
Source: PRS India
Tags: PrelimsPRS India

Related Posts

Beast of Five Teeth

Beast of Five Teeth

April 14, 2021
Montreux Record

Montreux Record

April 13, 2021
Nanda Devi and Valley of Flowers National Park

Nanda Devi and Valley of Flowers National Park

April 13, 2021
Keoladeo National Park

Keoladeo National Park

April 12, 2021
Himalayan Brown Bear

Himalayan Brown Bear

April 12, 2021
New study on Doomsday glacier

New study on Doomsday glacier

April 12, 2021
Satkosia Tiger Reserve

Satkosia Tiger Reserve

April 10, 2021

Pink-Headed Duck

April 10, 2021
Great Nicobar Biosphere Reserve

Great Nicobar Biosphere Reserve

April 7, 2021
Turtles and Tortoise

Turtles and Tortoise

April 7, 2021
Please login to join discussion
April 2021
MTWTFSS
 1234
567891011
12131415161718
19202122232425
2627282930 
« Mar    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Uncategorized

Browse by Tags

AIR Down to Earth DownToEarth GS-1 GS-2 GS-3 GS-4 India & the world Kurukshetra Mains news News Paper PIB Prelims PRS India RSTV Science Reporter Survey Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Uncategorized

Browse by Tag

AIR Down to Earth DownToEarth GS-1 GS-2 GS-3 GS-4 India & the world Kurukshetra Mains news News Paper PIB Prelims PRS India RSTV Science Reporter Survey Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In