The center plans to reward safe drivers with low premiums

“Good drivers should pay less for insurance, reckless drivers and rule breakers should face penalties,” said Nitin Gadkari. File | Photo credit: PTI

Union Road Transport Minister Nitin Gadkari on Monday (September 21, 2026) said the government will soon announce a policy to reward safe driving with lower insurance premiums and penalize reckless 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 policy will be issued soon, he added.

He said it would encourage better road behaviour.

The minister had earlier said the government was planning a demerit point system to make drivers more responsible and improve road safety across the country. According to the proposal, each traffic violation would lead to the removal of points from the driver’s license and vehicle registration. If too many points are accumulated, the license or certificate of registration may be suspended or revoked.

India recorded 4.68 million accidents and 1.77 million deaths due to accidents in 2024.

Published – 21 Sep 2026 23:22 IST