Introduction
India currently has one of the highest rates of road accidents in the world, with around 1.8 lakh casualties in the year 2024. Out of these, 30,000 people passed away while riding two-wheelers, without wearing a helmet. This was mentioned as part of Mr Nitin Gadkari, Union Minister of Road Transport’s speech during the Parliament Winter Session 2024. He also stated that Delhi was the most affected city with over 1457 deaths, followed by Bengaluru and Jaipur with 915 and 850 deaths, respectively. Such high numerical figures raise grave concerns regarding road safety in the country. Poor infrastructure, reckless and rash driving, and disobeying traffic rules are some of the first factors to be blamed for the same. However, a deeper analysis reveals that the issue lies in the country’s lenient driving test systems. This might further lead to severe consequences, such as an impact on the country’s insurance costs, along with an evident increase in road accident rates.
Significance
In India, the licensing process is governed by the Motor Vehicles Act 1988, which is considered lax to a great extent. In many Indian states, candidates who have applied for a driving license can easily pass with minimal testing procedures, with high possibilities of corruption, making it easier for individuals to obtain a license without even appearing for the test. A study by SaveLIFE Foundation in 2017 states that around 59% of Indian drivers lacked proper training before receiving their licenses. Additionally, corruption in RTOs allows under-qualified individuals to obtain licenses through bribery. Reforms, effective from June 1st, 2024, now allow candidates to take driving tests at private training centres authorised by the government, and not just at RTOs. Additionally, tougher penalties have been imposed for speeding, and the application for a driving license has been made easier. However, current driving tests in the country tend not to assess traffic rule awareness, and the candidate’s ability to drive at night, check for blind spots, apply brakes in case of emergencies, etc. All such incidents lead to a direct increase in road accident rates. Before the reforms were made in the system, bribery in RTOs was a common practice, enabling unqualified persons to drive on the road by getting licenses from the authorities. Such negligence allows room for other consequences, such as higher casualties, increased insurance claims, traffic congestion, and healthcare costs.
Case Study- Germany
Germany serves as a model for road safety and comprehensive driving tests. The driving test in Germany has two phases, a theoretical and a practical test. In the theoretical test, the candidate must qualify for a written exam, which tests their knowledge of traffic rules, basic road signs, and emergency protocols such as checking blind spots while driving. According to the German Federal Motor Transport Authority’s 2021 report, the failure rate can reach as high as 40%. Once a candidate clears their written exam, they have to undergo extensive hands-on training with a certified instructor. The candidate learns highway driving, which is compulsory, along with city navigation and night driving. Statistics reveal that completion of both phases might take the candidate 3-6 months and cost around EUR 2,500, equivalent to around INR 2.2 lakhs. Thanks to the stringent approach adopted by the German government, the International Road Traffic and Accident Database has found, in 2020, that Germany has one of the lowest accident rates in the world, with only 2.4 deaths per billion vehicle kilometres travelled, which is very low as compared to 17, as is the case for India. Additionally, Germany faces 3.7 road fatalities per 100,000 people, while India’s records show 18.9 fatalities per 100,000 people. This was calculated by the WHO in 2021.
Economic Impact
The World Bank’s 2020 report titled “Delivering Road Safety in India: Leadership Priorities and Initiatives to 2030” states that road accidents cost India around 5-7% of its GDP annually, accounting for increased medical expenses, legal proceedings, and lost productivity. However, nations like Germany and Sweden have much lower accidents and resultant economic losses.
The World Bank report also highlights that if the Indian economy were to achieve a 50% fatality reduction target, it would result in an estimated increase of a solid 14% increase in GDP over a period of 24 years. Additionally, the population welfare gains from achieving such a target account for 16.3% of the GDP. These mainly refer to improved traffic congestion and decreased disruption of supply chains, which further reduce transportation costs for businesses.
Insurance Costs
High accident rates directly impact motor insurance premiums. According to the Insurance Regulatory and Development Authority of India, motor insurance claims in India exceed INR 60,000 crores annually, which leads to high insurance premium rates for vehicle owners. It is easy to identify the immediate benefits of safe driving, such as avoiding accidents and penalties, yet many wouldn’t be aware of the long-term gains that safe driving provides. Car insurance depends heavily upon risk assessment to determine insurance premiums. Consecutively, a good driving record invites lower insurance costs due to reduced risk of accidents, while a not-so-good driving record shows a greater risk of accidents in the future, and hence, invites greater insurance costs. Hence, a good driving record is essentially a long-term gain in terms of financial stability, in addition to personal safety.
Policy Recommendations
In order to mitigate the adverse effects of the negligence in approving authentic certificates, law enforcement needs to act quickly. First and foremost, there is a need for stricter tests and mandatory driving school training. It is also necessary to form mechanisms to oversee a smooth, corruption-free licensing procedure that is fair to all applicants. The government could also look at a mandatory re-evaluation every five years in order to ensure driving competence. A lenient driving test system enables unqualified persons to register themselves on and work with platforms like Uber and Ola. Lack of formal training results in rash driving and poor navigation and thus increases risks for passengers and drivers alike. This affects the trust of the customers in ride-hailing services and impacts businesses.
Conclusion
The aforementioned aspects depict that India’s lenient driving system is an economic burden and not simply a road issue. The effects of the same are evident across industries and businesses alike. Additionally, there are a lot of social factors like trust erosion that are also considered, which cost the country a lot in this aspect as well. While the recent reforms made by the government in June 2023 show that we are in the right direction, there is still a long way to go. Corruption in TROs, lack of uniform implementation of stringent rules across states, and limited enforcement of training requirements continue to hinder the country’s growth. Henceforth, a stricter regime should be implemented along with tech-driven solutions to monitor drivers to create safer roads for citizens. The country requires stricter monitoring of licensing authorities, enhanced transparency through digital platforms, and greater public awareness about road safety. Policymakers must realise the urgency of the issue and advocate for reforms to ensure improved road safety and a better economy.
References
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