An amended Motor Vehicles Act has been in effect since September 1st, 2019. It penalises offenders heavily for not adhering to traffic laws and countless stories of people paying unheard of fines have been surfacing throughout the country. As a result, Digit, a new-age general insurance company backed by the Fairfax Group, one of the largest financial services groups in the world, has witnessed a sharp rise in the demand for two-wheeler insurance policies in the last few days.
In just one week of the bill coming into action, Digit saw a 163 per cent rise in demand for insurance policies over the previous month. Also, certain states saw a significant jump in policies with Delhi being first on the list with 1371 per cent (highest) followed by Jharkhand- 818 per cent, Odisha- 719 per cent Chhattisgarh – 679 per cent and Kerala – 660, respectively. Other states that saw a significant rise are Uttarakhand- 649 per cent, Haryana – 478 per cent, Meghalaya – 450% , Bihar – 388%, Andaman and Nicobar -338 per cent, Assam – 300 per cent, UP – 298 per cent, Himachal Pradesh -235 per cent and Chandigarh – 224%. A heavy penalty attached to the new Motor Vehicles Act has stimulated the demand for two-wheeler insurance policies across cities.
Jasleen Kohli, Chief Distribution Officer, Digit Insurance, said “The motor amendment bill will have a strong impact on improving the driver behaviour on roads. With the new regulations, people are now voluntarily coming in and renewing their policies. They are also being open to the idea of online purchasing of the policies for an instant policy buying experience. As Digit has always believed in simplifying insurance so we’ve made sure people can buy our policies instantly, with zero paperwork and in less than 7 minutes. We are expecting the demand to increase further as more regions start implementing the amended bill.”
The heavy fines have ensured that people around the country have begun to respect traffic laws so that they do no end up paying through their noses. However, many also feel that the amended act has only empowered the corrupt within the enforcement authorities even more. Then, there’s also the fact that road conditions across the country are in a seriously bad state and that has only agitated the common man even further.