# Centre to reward safe drivers with lower insurance premiums 2026-09-21T19:17:30+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Union Road Transport Minister Nitin Gadkari said on Monday that the government will soon notify a policy to reward safe driving with lower insurance premiums and penalise rash driving and traffic violations. 'Good drivers should pay less for insurance, reckless drivers and rule-breakers should face penalties,' he said at an event in Mumbai. The minister said the policy would be issued soon and would promote better road manners. He had earlier proposed a negative points system for driving licences and vehicle registration certificates, where each traffic offence would deduct points and accumulation could lead to suspension or cancellation. India recorded 4.68 lakh accidents and 1.77 lakh deaths due to road crashes in 2024. ## Indian Opinion Analysis The proposal links insurance costs directly to individual driving records, a shift from the current model where premiums are based largely on vehicle type and age. Under the Motor Vehicles Act, state transport departments already maintain driving licence databases with offence histories, so the infrastructure for a points-based system exists. The key operational question is how the government will integrate real-time traffic enforcement data from multiple state agencies with the insurance database managed by the Insurance Regulatory and Development Authority of India (IRDAI). The ministry must also define what constitutes a 'safe driver' and set the threshold for premium discounts. A draft notification or the final rules are expected to clarify these details. ## Coverage - thehindu.com Tags: IRDAI, Motor Vehicles Act, Nitin Gadkari Canonical: https://indianopinion.org/centre-to-reward-safe-drivers-with-lower-insurance-premiums/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/centre-to-reward-safe-drivers-with-lower-insurance-premiums/#story-in-brief