Soon bad road etiquettes could bring you costly two wheeler insurance

Every year, there are over 4 lakh accidents on Indian roads. A majority of these accidents involve two-wheelers and are caused due to rash or negligent riding. Various measures are being implemented to bring down these eventualities and the number of accidents has been on the decrease ever since.

In a bid to further these efforts & make people ride safer, the transport department is mulling over the idea to provide incentives to those who maintain road regulations and penalize frequent offenders. It is in talks with the IRDAI to track the driving & accident records of individuals so as to provide them insurance premiums based on their driving history.

What will this mean for vehicle owners?

Well, since traffic cameras are coming up on most main roads, it would mean that any rash driving or violation of traffic rules will be taken note of. Everything from breaking signal to lane cutting to accidents will be recorded and mentioned against your driving record. When you renew your insurance, your premium could go up if you’ve been caught breaking traffic rules. Alternatively, your premiums could also dip in case you’ve been driving safely & not broken any traffic regulations during the policy tenure.

Double the benefit for safe riders.

Safe riders mostly never have to make claims. This ensures that their NCB stays intact and they enjoy sizeable discounts on premiums when it comes to two wheeler insurance renewal. In addition to their NCB, safe riders could now be entitled to further discounts if this recommendation by the Transport Department is taken up by the IRDAI.

It’s already a working model in other parts of the world.

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In countries like the US & the UK, this system has already been implemented. Frequent offenders face 30 or 40 percent higher premiums than drivers with a clean driving record. In fact, more than the fines, motorists are afraid of higher premiums amounts as motor insurance is already quite expensive in such countries.

There’s more!

Besides for the driving-record-based premium incentive/penalty system, the Transport Department is also planning to integrate their VAHAN software with the IRDAI’s database to keep track on individuals who aren’t renewing their motor insurance policies on time. This is after research has shown that more than half of the vehicles on Indian roads, a majority of which are two-wheelers, currently operate without any valid bike insurance policy. Together, the Transport Department & the IRDAI would then decide on some penalty or action to be taken on those who fail to renew their two wheeler insurance policies on time.

Both these recommendations, if taken forward, will deter bike owners from riding rashly & will encourage them to keep their two-wheeler insurance valid. They have already been proven to help the overall road safety scenario in western countries and will surely help us here in India.

We hope this article has been helpful. Good luck and ride safe; your premium might depend on it!

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