More than 2 Traffic challans may invite more Motor Insurance Premium soon: Know more

As per the recent reports, in the previous month, authorities were thinking of merging unpaid challans on a vehicle to higher premiums paid for the vehicle’s insurance. If an individual does not pay any of the two chalans from the previous financial year, then he/she may be required to pay higher premiums towards their vehicle’s insurance policy next year.

In a similar way, if they register more than 3 traffic rule violations, such as driving in the footpath or using petrol vehicles for more than 10 years and diesel vehicles for more than 15 years. In these cases, their license can be seized for a minimum period of 3 months, or the registration of the vehicle can also be cancelled till the time the applicable fine is paid.

Additionally, if no action is been taken by the individual on the registered challan within 30 days of implementation, it will automatically be considered a crime on the owner of the vehicle.

As the new financial year has begun this month, people are confused about whether they have to pay higher motor premiums on their vehicles this year or not if their two or more challans are pending (If they have unpair challans for the last year’s financial year).

People are in doubt whether all these rules will be implemented beginning this fiscal year.

Currently, the Rule is in Draft, and No Specific Time Line is Been Specified

One of the experts says the said proposal is still in draft stage and yet to be implemented. The tracking of the challan status post-policy insurance creates practical and systemic challenges. As it will require a safe and continuous data-sharing mechanism among the Ministry of Road Transport, the State Traffic Dept., and motor vehicle owners.

He also says the implementation of this rule will not be easy as it will need various privacy and follow concerns to be addressed under the Digital Personal Data Protection Act (DPDP).

However, many experts say that linking traffic challans with motor insurance premiums is still being rolled out in steps across different states in India. For example, states like Delhi are testing real-time data sharing between traffic police and insurance companies through central platforms like the PARIVAHAN Portal.