If you have a good driving record and you reside in Pune, then Bajaj Allianz General Insurance Co Ltd has a reward to offer you. The insurer has tied up with Pune police to offer special rewards on motor insurance policies for those drivers who follow traffic rules passionately.
After the government implemented the Motor vehicles Act, the Insurance Regulatory and Development Authority of India (IRDAI) formed a committee of 9 members to inspect linking premiums with traffic violations.
By making sure that the people driving on the road every day follow the rules and regulations, the police are focusing on improving the safety of citizens. The tie with Bajaj Allianz General Insurance is a step taken to appreciate and reward the deserving citizens who have been sincere in adhering to traffic rules, said by the commissioner of Pune police Dr. Venkatesham in a press release.
The insurer further said in response to a query that they are also planning to give discounts between 5-15% on motor insurance premium based on the driving behaviour of vehicle drivers in the city. For this, the customer will have to share a declaration stating that they have been following the traffic rules and regulations passionately. The information will also be verified from the traffic police whenever needed, and benefits will be provided accordingly.
The government emphasized on traffic violation history to be considered as a parameter to fix motor insurance premiums as a part of the amendments in the Motor Vehicle act. Till now, the premiums were considered based on the car’s model, make and variant. But the recent announcement from Bajaj Allianz to offer rewards to mindful vehicle drivers has shown the other side of the insurance industry.
According to Indraneel Chatterjee, co-founder and principal officer, RenewBuy.com, a digital insurance company, this move will discourage traffic rule violations and will help the country to adopt global practices that will lead to more innovations in space.
The e-challan system initiated will be a great help in collecting data for traffic violations, and the fines vehicle drive has paid. This means the smallest violation could affect the premiums.
Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Co Ltd said that it is unfortunate that many people lose their lives daily due to accidents happening on Indian roads. This association is a way to offer rewards in the form of better insurance policy pricing for citizens residing in Pune.
Last year in July, Police of Keonjhar district of Odisha rewarded Rs 100 and certificate of appreciation to good drivers who obey traffic rules and drive safely. The initiative was to discourage the violation of traffic rules and regulations.
The police also checked if the driver is wearing a helmet, carrying the required documents like a valid driving license, insurance, etc. not using a mobile phone while driving and is obeying the speed limit as a part of the initiative. Drivers were also being put through a breathalyzer test. The task of choosing good drivers and offering cash incentives was given to Inspectors in charge of the police station.