Delhi Lieutenant Governor (LG) VK Saxena has written to Union Finance Minister Nirmala Sitharaman, advocating for a major reform in vehicle insurance premiums. Saxena's proposal suggests linking insurance costs to the frequency of traffic violations committed by drivers, aiming to discourage reckless driving and improve road safety across India.

In his letter, Saxena explained that tying premiums to a driver's traffic record would act as a financial deterrent, promoting safer driving habits while reducing the burden on the insurance sector from frequent claims. He pointed out that similar systems in countries like the United States and Europe have proven effective in reducing road accidents and fostering responsible driving.

Citing alarming road safety statistics from the Ministry of Road Transport and Highways (MoRTH), Saxena highlighted that over-speeding and red-light violations are the leading causes of fatal accidents in India. In 2022, the country saw over 4.37 lakh road accidents, with over-speeding responsible for nearly 70 percent of them.

Delhi’s own data from 2023 supports Saxena's case, with the Delhi Traffic Police reporting that 60 percent of fatal accidents involved vehicles with prior traffic violations. Moreover, vehicles with more than three violations in a year were disproportionately involved in severe accidents.

Saxena concluded by urging the Finance Minister to collaborate with the Insurance Regulatory and Development Authority of India (IRDAI) to develop a comprehensive framework for this policy, which could potentially save lives and improve road safety in the country.