Motor premium linked to traffic violations in India

A working group, set up by the Indian regulatory authority IRDAI, is proposing to link motor insurance premiums to traffic violations.

Called "Traffic Violation Premium", the new solution could be attached to any coverage, including motor own damage and third-party liability insurance.

The Insurance Information Bureau (IIB) will combine its efforts with the traffic police to collect data on traffic violations, calculate the violation points for each vehicle and provide the information to all motor insurers.

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