Vehicle owners having habit of rash driving could end
up paying higher insurance premium for their vehicles; this is one of the key
reforms being incorporated in the new Motor Vehicle & Traffic Safety law.
At present, insurance premium for vehicle is determined on the basis of vehicles only; but now, if the new law is implemented, it will be linked both to vehicle and record of its drivers.
As per the law proposed, over the next 1-2 years, data relating to drivers (whether it's driven by hired driver or the owner itself) and their offences would be recorded and available online through a centralised database. This will help vehicle owners verifying the credentials of a driver and get his driving record. In addition, it would also help insures determine premium at the time of renewal.
“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 an official. The changes in the new Motor Vehicle & Traffic Safety law is mooted because in most of accidents, drivers are found to be responsible and there 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. This move could help curbing rash and negligent driving.
At present, insurance premium for vehicle is determined on the basis of vehicles only; but now, if the new law is implemented, it will be linked both to vehicle and record of its drivers.
As per the law proposed, over the next 1-2 years, data relating to drivers (whether it's driven by hired driver or the owner itself) and their offences would be recorded and available online through a centralised database. This will help vehicle owners verifying the credentials of a driver and get his driving record. In addition, it would also help insures determine premium at the time of renewal.
“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 an official. The changes in the new Motor Vehicle & Traffic Safety law is mooted because in most of accidents, drivers are found to be responsible and there 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. This move could help curbing rash and negligent driving.
Source: http://www.insuringindia.com
No comments:
Post a Comment
So, what do you think?