the insurance regulatory and development authority of india irdai has on the request of the government set up a working group to examine and recommend linking of motor insurance premiums with traffic violations insurance companies will have to undertake a pilot project in the national capital territory nct delhi to implement the premium escalation formula as per an order issued by irdai on september 6 as the working group is tasked with submitting its report within 2 months of the irdai order bad drivers may face a double whammy soon as penalties for traffic violations have already gone up sharplythe irdai order said that linking insurance premiums to traffic violations committed could reduce road accidents and change driver behavior according to the irdai order the government of india is focusing on intelligent traffic management system in the metropolitan and smart cities in view of this the automated traffic enforcement and violations of the motor vehicles act through echallan have been initiated to take action against registered ownersdrivers of motor vehicles involved in traffic offences it is perceived that linking insurance premium to traffic violations committed could reduce road accidents and change driver behaviourwith the recent amendments to the motor vehicle act effective from september 1 2019 you already have to pay extremely high penalties for driving errors in such a situation soon you may have to pay more motor insurance premium if you violate traffic rules the working group will examine a system of linking of motor insurance premiums with traffic violations the terms of reference of the working group areto recommend implementation framework and methodology to link insurance premium with traffic violationsto study international practices on the above subject and recommend best practices suitable to indiato evaluate the current point system for traffic violations implemented by states and evolve standard point system considering each traffic violations to develop data fields required to implement traffic violations as rating factor in motor insuranceto suggest system of access to traffic violation history data of each vehicle and transfer of data from enforcement authorities to iibi databaseto suggest modalities for carrying out an immediate pilot project in the nct delhito consider any other aspect relating to the subjectaccording to irdais order the highpowered committee for traffic management in the national capital territory nct of delhi under the chairmanship of union home secretary requested insurance regulatory and development authority of india irdai to examine the issue of linking insurance premium with traffic violations subsequently in a meeting held under the chairmanship of special commissioner of police traffic delhi on integration of insurance and traffic prosecution data it was decided that a working group will be formed to take the idea forward hence the working group is constituted to examine the establishing of a system of linking of motor insurance premium with traffic violations the insurance companies have to undertake a pilot project in nct delhi to implement the premium escalation formulathe ninemember group comprises officials of delhi traffic police irdai insurance information bureau of