25 March, 2008
The India transport department will soon begin providing insurance for current driver’s license holders. The present driver’s license will soon turn into a smart card loaded with personal details that come with the insurance cover. A private-public partnership will be in place to issue the smart cards. The private party will computerize the database. While vehicle owners will pay a bit more for a smart card, the private party will pay the first year’s insurance premium. The vehicle user will have to pay it from the following year. In six months’ time all new applicants will be issued the smart cards, while old users have been given two years to re-apply and obtain the card. The private partner will supply computer hardware and peripherals, infrastructure — all this at no cost to the transport department. Instead, the private partner will collect the smart card fee from vehicle users.