‘Their’ will increase insurance premium

‘Their’ will increase insurance premium

With the introduction of stringent enforcement of the new Motor Vehicles Act in the country from September 1, increasing the penalties for traffic violations have begun to burden the drivers’ pockets.

With the introduction of stringent enforcement of the new Motor Vehicles Act in the country from September 1, increasing the penalties for traffic violations have begun to burden the drivers’ pockets. As a whole, the central government is now planning to increase the premium for driverless vehicles, which breaks the rules of transportation. Against this backdrop, the insurance regulator ‘Erda’ has appointed a committee to make recommendations. The committee is likely to submit the report by November.

With the committee making a favorable recommendation, Erda is likely to increase the vehicle insurance for those who are in violation of traffic rules. Then there is the fear of violating the rules of traffic and becoming more expensive. According to Erda, in the first phase, a plan to increase vehicle insurance for those who violate the rules of transportation will be implemented on a practical basis. The scheme will first be implemented in the capital, New Delhi. According to the insurance regulator, a violation of the rules of transportation is linked to the premium, which may change the tendency of the driver to change the rules and alternatively reduce road accidents. Third-party insurance has been made compulsory in the country for the use of road vehicles.

The committee comprises nine people

Nine people were included in the committee appointed by Erda, including representatives from Erda, the Insurance Information Bureau of India (IIBI), Delhi Traffic Police and insurance companies. Anurag Rastogi, Chief Executive and Chief Underwriting Officer of HDFC Argo General Insurance Company has been selected as the committee chair. The committee will provide suggestions on how to implement the scheme to ‘Erda’.

Expect a change in driver behavior

The central government is focusing on ‘Intelligent Traffic Management System’ in metro and smart cities to improve traffic. Transport under it

An automated traffic enforcement or e-invoice will be levied against registered drivers who violate the rules. Erda hopes to reduce the number of road accidents by reducing the amount of vehicle insurance in violation of the rules, and as the pockets are lightened.

Laws apply to studies

All states have started strict enforcement since the new Motor Vehicles Act came into effect on September 19. As a result, large-scale penalties have also been initiated by those who break the rules. A committee of experts was appointed to recommend the Act. Only then has this law been implemented.

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