Page 7 - Insurance Times February 2021

and exclusions under domestic and premiums with traffic violations, entity. Effectively, this means that the
overseas travel insurance. submitted its report and addendum, on owner will take full responsibility for
Meanwhile, to simplify family floater 18 January. the traffic violations caused by the
health insurance covers for The committee has recommend authorized vehicle driver.
policyholders, IRDAI has also asked inserting a fifth section to motor Traffic violation premium will be
insurers to spell out clearly the benefits insurance called, traffic violation charged only on the policy anniversary.
and sum insured for each family premium, in addition to motor own- If the policyholder has already paid
member covered to make clear the damage (OD) insurance, basic third- traffic violation premium and
distinction between availability of party (TP) insurance, additional third- approaches an insurer to buy an
coverage under family floater basis party insurance and compulsory additional cover (OD in case of existing
and on an individual basis vis-a-vis the personal accident premium. TP cover or vice-versa), she will not
premium payable. Naval Goel, CEO and founder, need to pay the violation premium all
PolicyX.com, said now customers will over again.
Vaccine manufacturers have to pay more attention to their Traffic violation premium is a premium

rush for Vaccine liability driving and cases of traffic violation payable "as on date" and will not vary
cover may reduce. "A good step as safe with the period of insurance cover.
Hence, it is possible for the traffic
drivers will be able to get better rates
Covid-19 vaccine manufacturers in and aggressive drivers will shell out violation premium to be the same for
India have got themselves covered more. That is better in terms of risk a long-term insurance buyer and
with product liability policies as the bucketization and pricing," he said. annual insurance buyer if their vehicle
immunisation drive has started. They The Insurance Information Bureau of types and violation history are similar,
had also taken clinical trial liability India (IIB) will coordinate with various as per the draft proposal.
insurance during the trial phase to states' traffic police and National
protect themselves. Informatics Centre to capture the Government vehicles to
Insurance companies, on the other traffic violation data, calculate viola- have life of maximum 15
hand, have sought reinsurance tion points of each violating vehicle and
support. "The reinsurance support, make this information available to all years
which has been sought by insurance general insurers through IT system in- The Centre is set to go for mandatory
companies, is for product liability. tegration with insurers, according to scrapping of government vehicles
Hence, if the vaccine has some IRDAI's draft proposal. which are more than 15 years old even
negative effects, the insurers will be IIB will maintain the historical traffic as it moves to introduce a stringent
liable to pay. Two companies - ICICI violation data of all vehicles. However, fitness and emission-related regime for
Lombard and New India Assurance - traffic violation in only the past two phasing out of old personal vehicles.
have sought reinsurance support and years, from the date of the insurance Though the share of government
they have been given the support," a proposal, will matter for traffic vehicles is negligible, sources said at
source aware of the development said. violation premium. This means poor least a beginning can be made with this

Both the companies have sought traffic violation history will impact two to roll out the formal mechanisms to
reinsurance support of $5 million annual insurance renewals. scrap old polluting vehicles. However,
against the risk. Every motor insurance buyer, who state governments will have the final
approaches a general insurer for any say in disposing their vehicles as
Traffic violators may soon type of motor insurance, own damage transport is a state subject.
have to pay more for or third-party or package covers, will Sources said while chairing a meeting
be assessed for his traffic violation
on the proposed Vehicle Scrapping
motor cover points. Accordingly, the traffic violation Policy, Prime Minister Narendra Modi
The working group committee set up premium will be charged, said IRDAI's asked the ministries concerned to
by the Insurance Regulatory and draft proposal. finalise the policy before the budget
Development Authority of India Traffic violation premium will be and step up the setting up of
(IRDAI), to examine and recommend payable by the registered owner of the automated fitness testing centres and
the linking of motor insurance vehicle, whether it's an individual or an vehicle scrapping centres to accelerate
The Insurance Times, February 2021