The rapid growth in technology enables easy, precise accountability for driving records, such as e-challans and insurance claim history. The introduction of the e-challan system provides access to a person’s entire challan history and the number of pending challans.
Insurers use this information and draw on additional data from multiple databases to run background checks on all their policyholders to assess their risks. This helps them evaluate a person’s insurance premium. Read more to know how traffic records influence bike insurance premiums.
What Types Of Driving Records Affect Your Bike Insurance Premiums?
An insurer uses data to conduct a background check on the policyholder, including the bike’s make, model, type, and condition. Here is a list of the common records an insurer considers when assessing a person’s driving behaviour.
1. E-Challan History
Your challan history represents your adherence to the traffic laws. Currently, the e-challan system in states like West Bengal is a lot more efficient in capturing violations and issuing wb traffic challan. Make sure you adhere to the laws, whether an officer is deployed or not.
2. Unpaid E-Challans
Unpaid e-challans can appear on your driving history and negatively affect your insurance application. It represents that the person lacks responsibility and may commit more violations in the future.
3. Insurance Claim History
Making an insurance claim for every minor issue can increase your insurance price. Higher frequency in claims also indicates that your car’s condition has depreciated due to the accidental damage. This can reduce your bike’s IDV.
4. Dangerous Riding
The e-challan system can easily capture violations such as overspeeding or jumping signals. These violations can negatively affect your driving history and increase your premiums.
5. Major Traffic Law Violations
Insurers also look for the types of violations that led to the challan. Major violations such as drunk driving, accidents caused by minors, and not having a valid driver’s license can significantly affect the bike insurance premiums.
Effects of Negative Driving Records on Two-Wheeler Insurance Premiums
Having an unclean driving record can cause multiple complications when you try to apply for a bike insurance policy. Let’s know about them in detail.
- Increased Risk Perception: Having a list of challans in the traffic challan history directly increases the insurer’s risk perception.
- Increased Insurance Premiums: The insurance company determines your premiums based on its perception of risk for you. Having multiple records of traffic law violations can increase your premiums for a comprehensive bike insurance policy.
- Cancellation or unavailability of the Bike Insurance Policy: Based on the insurer’s risk perception, the insurer might reject your application for providing a policy. Even if you have an insurance policy, an increase in violations can cause a cancellation of your current policy.
- Limited Coverage: In many cases, insurers offer only limited coverage options to high-risk policyholders. They can also demand a higher rate of voluntary deductible to accept their application.
How Do Insurance Companies Access Their Customers’ Driving Records?
Digitisation in the traffic management system and across the insurance industry makes it easier for insurance companies to gather data and conduct background checks on their customers. It sources data from sources like:
- Government Databases (VAHAN and SARATHI)
- Shared Information Network of Multiple Insurers
- License Check, etc.
Tips To Improve Your Driving Records
The introduction of e-challan systems has made it almost impossible for people to escape a challan after committing a traffic law violation. Here are some tips to keep your driving record clean.
1. Check Your Bike E-Challan Periodically
The new e-challan system automatically issues e-challans on your phone. Check your bike’s e-challan regularly to be aware of your pending challans. It will also help you to identify faulty issuance and report them as soon as possible.
Note: Recently, in Telangana, over 50,000 e-challans were found to be faulty due to a system glitch. Now, these incidents can damage your driving record if they remain on your record for too long. Periodic e-challan check will protect you from such problems.
2. Pay Your Pending Challans
Pay your pending challans as soon as possible, as they can negatively impact your driving record. Moreover, under a new government rule, you can lose your driver’s license if you have a pending challan for over 90 days.
3. Follow The Traffic Rules
Follow the traffic rules, whether a traffic police officer is deployed or not. This will save you from e-chalans and probable accidents, too.
4. Keep Updates on the New Changes in Traffic Laws
The trajectory of India’s traffic management system is changing rapidly. Keeping up to date on the new changes allows you to comply with them.
The Bottom Line
Previously, bike insurance was the same for everybody. However, since insurers check driving records for background checks, they can reward safe drivers with lower premiums and increase premiums for frequent violators. Apart from increased premiums, frequent violators may face other repercussions, including suspension or confiscation of their driver’s license.
