Tipping point: Will traffic fines have an impact on insurance premiums?

Soon, you may have to pay a higher premium if you break traffic rules. The Insurance Regulatory and Development Authority of India has set up a committee to look at linking insurance premiums with traffic fines. According to a notification from the regulator, insurance companies have to undertake a pilot project in the National Capital Region, Delhi, to implement the premium escalation formula. The regulator says that linking insurance premium to traffic violations could reduce road accidents and change driver behaviour. At present, the insurance premium is linked only to the type of vehicle and engine capacity.