Page 48 - Insurance Times October 2019

Circular

IRDAI Circular

Working Group to examine and i. Shri. Anurag Rastogi, Chief Actuary & Chief
Underwriting Officer, HDFC Ergo General Insurance
recommend linking of motor insurance Co. Ltd., Chairman of the Working Group
premium with traffic violations ii. Shri. Rakesh Paweriya, DANIPS, DCP/Traffic
(Central Range), Delhi Traffic Police, Member
Ref. No: IRDAI/NL/ORD/MISC/153/09/2019
Date: 6th September, 2019 iii. Shri. Ravinder Soni, DANIPS, ACP/Traffic
(Engineering), Delhi Traffic Police, Member
1. The Government of India is focussing on Intelligent
Traffic Management System in the Metropolitan and iv. Ms. Anjitha Chepyala, DANIPS, ACP/Traffic
Smart Cities. In view of this, the Automated Traffic (Headquarters), Delhi Traffic Police, Member
Enforcement and violations of Motor Vehicles Act v. Shri Vinay Verma, Deputy General Manager, The
through e-Challan have been initiated to take action Oriental Insurance Co. Ltd., Member
against Registered Owners/Drivers of Motor Vehicles vi. Shri. Pankaj Jain, Vice President and Head of Motor
involved in traffic offences. It is perceived that linking Underwriting, Bajaj Allianz General Insurance Co.
Insurance premium to traffic violations committed Ltd., Member
could reduce road accidents and change driver
behavior. vii. Shri. Amitabh Jain, Head - Customer Service Motor,
ICICI Lombard General Insurance Co. Ltd., Member
In this regard, the High Powered Committee for Traffic
Management in the National Capital Territory (NCT) of viii. Ms. Nimisha Srivastava, Deputy General Manager,
Delhi under chairmanship of Union Home Secretary IRDAI, Member
requested Insurance Regulatory and Development ix. Shri. Jacob Kunnapally Thomas, Motor Head, IIBI,
Authority of India (IRDAI) to examine the issue of Member Convener
linking insurance premium with traffic violations.
Subsequently, in a meeting held under the 3. The terms of reference of the Working Group are as
chairmanship of Special Commissioner of Police: Traffic, under:
Delhi on Integration of Insurance and Traffic a) To recommend implementation framework and
Prosecution Data, it was decided that a Working Group methodology to link insurance premium with
will be formed to take the idea forward. Hence, the traffic violations.
Working Group is constituted to examine the
establishing of a system of linking of motor insurance b) To study International practices on the above
premium with traffic violations. The Insurance subject and recommend best practices suitable to
Companies have to undertake a pilot project in NCT, India.
Delhi to implement the premium escalation formula. c) To evaluate the current point system for traffic
violations implemented by States and evolve
2. The Working Group is composed of the following
standard point system considering each traffic
officials of Delhi Traffic Police, IRDAI, Insurance
violations.
Information Bureau of India (IIBI) and General
Insurance Companies. d) To develop data fields required to implement

48 The Insurance Times, October 2019