Increase vehicle insurance premium for violators: Odisha Govt

Higher premiums can be charged from such vehicles at the time of renewal, govt proposes

Published: 26th April 2023 11:12 AM  |   Last Updated: 26th April 2023 11:12 AM   |  A+A-


Image used for representational purpose | Vinay Madapu

By Express News Service

BHUBANESWAR: Expressing concern over rising road fatalities despite several measures, the Odisha government has urged the Centre to enhance insurance premiums for vehicles committing repeated violations of traffic rules.

The state Commerce and Transport department has moved the Ministry of Road Transport and Highways for levying higher insurance premiums on frequent offenders so that the drivers are discouraged from flouting road laws.

As the insurance premium issues are dealt with by the Insurance Regulatory and Development Authority of India (IRDAI), the principal secretary of Commerce and Transport Usha Padhee has urged the Union Secretary of Road Transport and Highways Anurag Jain to take up the matter at the appropriate forum. Around 1.5 lakh people lose their lives in road accidents in India every year and many more suffer debilitating injuries. This causes immense economic hardship and emotional trauma to the affected families.

In a recent meeting of the State Road Safety Council chaired by chief secretary PK Jena, it was decided to take steps for charging higher insurance premiums on the vehicles, which are violating traffic rules repeatedly. Though it is yet to be decided how much premium would be charged, it would be levied in addition to the existing premium offered by the motor insurance companies. A discussion with the general insurance companies has also been held and they have agreed to extend all possible cooperation in this regard.

Stressing that there is an urgent need to make roads safer because the loss of lives and limbs cannot be accepted as an inevitable consequence of mobility, Padhee suggested the vehicles which are violating traffic rules repeatedly can be detected by integrating the database of Vahan with IRDAI.

Accordingly, higher premiums can be charged from such vehicles at the time of renewal of insurance. The additional premium collected may be shared with the state for taking up various road safety activities. The detailed modalities of revenue sharing may be finalised later, she added.

Meanwhile, the government has decided to create a profile of drivers based on their driving history and categorise them as safe or risky. The nature of traffic violations of drivers would be linked to their driving licence and shared with the motor insurance companies. A higher premium would be levied on the risky drivers whenever they approach for renewal of the insurance.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp