By Dipak K Dash
NEW DELHI: Vehicle owners could end up paying higher insurance premium for their vehicles if they employ "risky and unsafe drivers" or they themselves drive in such fashion. This is one of the key reforms being incorporated in the new Motor Vehicle & Traffic Safety law.
Over the next 1-2 years, data relating to drivers and their offences would be recorded and available online through a centralised database. This will enable vehicle owners to verify the credentials of a driver and get his driving record.
While at present the insurance is linked only to vehicles, under the new law it will be linked both to vehicle and record of its drivers.
The change is being mooted as in majority of crashes, drivers are found to be responsible and there have are numerous examples from different cities where the same driver is found guilty of repeat offences. The proposed law will provide for higher penalty and negative points for repeat offenders.
Government officials said the insurance companies can identify the "risky drivers" by accessing the centralised database. "So, at the time of paying annual premium, the vehicle owner has to pay higher premium for errant driving. It is the responsibility of the owner to employ a good driver," said a government official.
Welcoming the initiative to link safety to insurance premium, road safety expert Rohit Baluja said the key issue is "what all offences would make a driver risky and who will decide on the risky drivers". He said though it's a good thought, there is need to assess whether the country is prepared to implement such a legal provision where police have little knowledge on road safety and there is hardly any crash investigation to establish who caused the accident.
A senior executive of a major insurance firm told TOI that the focus of all such reforms should be on the "internet connectivity and technology" for successful implementation. "Our country needs to gear up for such reforms, which are prevalent in other countries. We believe that no vehicle is risky, but the driver is," he added.
Special commissioner (traffic) of Delhi Police Muktesh Chander said a driver who is prone to cause accidents must pay higher premium just as a sick man pays more for the insurance cover. "Until the livelihood of bad drivers and those posing serious risk to other road users is linked to his track record of driving, it would be tough to reduce fatalities," Chander said.
Talking to this paper, a senior official at the Insurance Regulatory Authority of India (IRDA) said at present the vehicle owner gets 'no claim bonus' for accident-free drive. "Once the government comes out with any new legal provision, the issue would be discussed on its implementation," he added.
Road safety experts said insurance companies have driven road safety reforms in the developed world. "Their compensation outgo to third party reduces significantly if there are less accidents and particularly fatal ones. But for successful implementation of this provision, there is need to record all offences. Otherwise in most part of India every offence by a driver is the first offence and so he is not made to pay higher fine and also faces little penalty," said SP Singh of IFTRT, a think tank on transport issues.
Source: The Times of India
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