The country is considering reducing insurance payments for drivers who demonstrate good driving habits. This was announced by the Minister of Central Transport and Highways, Nitin Gadkari. He shared this information at the Global Fitech Fest 2026 event held in Mumbai.
The Minister noted that the government is studying the concept of usage-based insurance. Under this model, drivers who behave responsibly behind the wheel should pay less for insurance. Furthermore, stricter penalties are being discussed for those who violate traffic rules or engage in aggressive driving. A corresponding bill is being prepared in light of these new regulations.
Nitin Gadkari emphasized that implementing such rules will promote a culture of safe driving. The Central Minister also expressed serious concern regarding road accidents. According to him, about five hundred thousand accidents occur annually, resulting in approximately one hundred eighty thousand deaths. The largest number of victims are young people.
He specified that about sixty-six percent of those killed in these accidents are between the ages of 18 and 36. He presented this data during discussions on fare payment and mobile financing at the Global Fintech Fest. During his speech, he also touched upon India's digital infrastructure.
The Central Minister stated that India possesses a strong digital foundation, including UPI for payments, Aadhaar for identification, FASTag for mobility, and a vehicle registration system. He added that the next step should be integrating all these digital capabilities to create an interconnected ecosystem designed for intelligent mobility.
During the event, the 'OneTag' service was launched, which is a solution for FASTag portability. This service will allow NETC FASTag users to change their bank without needing to purchase a new chip, similar to how one can transfer a mobile phone number from one service provider to another.