The Union government is considering a comprehensive overhaul of India’s driver licence and vehicle-related services, with a focus on improving road safety, reducing procedural hurdles, and making the system more citizen-friendly. Among the key proposals under discussion are the introduction of a behaviour-based point system for traffic violations, linking penalty points to insurance premiums, the elimination of medical certificate requirements for drivers aged 40 to 60, and greater digitalisation of licence and vehicle services. These reforms, which are part of broader efforts to enhance the “ease of living,” could be implemented as early as March 2026, according to sources familiar with the matter from the Union Ministry of Road Transport and Highways.

Medical Certificate Requirement Under Review

Currently, individuals aged 40 to 60 seeking the issuance or renewal of a driving licence must submit a medical fitness certificate. This certificate is meant to attest to the applicant’s physical fitness and ability to drive safely. However, officials acknowledge that in practice, the medical certificate is often treated as a formality and is rarely scrutinised in depth by transport authorities. As a result, one of the proposals under consideration is to remove this requirement for drivers in the 40–60 age group, while retaining it for applicants above 60, for whom health concerns are more likely to impact driving safety.

Officials said this move would reduce unnecessary paperwork, shorten processing times, and simplify the licence renewal process for a large number of drivers. It is seen as part of a broader push to improve service delivery and reduce procedural bottlenecks across the transport sector.

Behaviour-Based Penalty Point System

A major component of the proposed reforms is the introduction of a penalty points system linked to driving conduct. Under this system, traffic violations recorded through e-challans will accrue points against a driver’s licence. Drivers who accumulate points beyond a pre-defined limit could face temporary suspension of their licence or restrictions on driving privileges. The system is also being considered as a mechanism to influence insurance premiums, with repeat offenders potentially paying higher premiums.

The government believes that linking violations directly to the individual driver, rather than just the vehicle, will encourage safer driving and reduce accidents. Officials indicated that under the current system, most e-challan records are tied to the vehicle registration number rather than the driver. As Ashwini Bagga, a road safety consultant working with the Rajasthan government, pointed out, for a behaviour-based system to function effectively, databases must capture driver licence details at the time of issuing a challan. Without this, the gap between vehicle-based enforcement and driver accountability could persist, undermining the objective of the system.

Digitisation and Online Services

Alongside the penalty points system, the government is planning significant digital upgrades to the driver licence and vehicle management processes. All licence holders will be required to digitally update their mobile numbers and residential addresses. This would ensure that the transport department has current contact information, enabling easier communication and supporting electronic enforcement measures.

Another proposed reform is a fully online system for vehicle ownership transfers, leveraging Aadhaar-based authentication for buyers and sellers. This initiative aims to curb fraudulent transfers, reduce long queues at regional transport offices, cut paperwork, and make routine vehicle transactions faster and more convenient. Officials emphasized that digitalisation will also support broader enforcement measures and improve overall efficiency in the sector.

Ensuring Only Qualified Drivers Are Licensed

While simplifying procedures, the government has underscored that licences should continue to be issued only to qualified drivers. Proposals are being examined to use technology in driving tests and assessments, reducing delays while maintaining rigorous standards. This includes greater use of digital evaluation tools and monitoring systems to assess applicants’ competence in both practical and theoretical aspects of driving.

Insurance and Advanced Monitoring Systems

Earlier proposals also considered integrating driver behaviour with insurance premiums as a value-added measure to incentivise safe driving. This would complement a planned GNSS (Global Navigation Satellite System)-based tolling system, which could track driver behaviour continuously, even in the absence of enforcement personnel. However, the official rollout of the GNSS-based system has been delayed because India’s NavIC navigation system is not yet fully operational. Once implemented, such a system could provide detailed data on driving patterns, speeds, braking habits, and adherence to traffic rules, allowing insurers to adjust premiums according to actual behaviour.

Expert Perspectives on Reforms

Experts have largely welcomed the proposed changes but have also highlighted potential challenges. Anil Chhikara, former deputy transport commissioner of Delhi and faculty at the Asian Institute of Transport Development, said the behaviour-based penalty system is a positive step that could curb reckless driving. However, he cautioned against completely eliminating health certification for drivers above 40, suggesting that rigorous physical and psychometric tests should remain in place to ensure drivers are capable of handling vehicles safely.

Ashwini Bagga raised concerns about the practical application of the points-based system, noting that many enforcement mechanisms still record violations against vehicles rather than individual drivers. She stressed that without accurate driver-specific tracking at the point of violation, the effectiveness of penalty points and the insurance-linked system could be limited.

Broader Implications for Road Safety and Governance

The proposed reforms represent a shift towards behaviour-based regulation, moving away from purely procedural compliance. By linking violations to individual drivers and integrating the system with insurance, authorities hope to create financial and administrative incentives for safer driving. The reforms also reflect a broader trend of using digital tools and Aadhaar-based authentication to streamline governance, reduce opportunities for fraud, and improve the efficiency of public services.

At the same time, officials acknowledge the importance of balancing ease of living with enforcement. While eliminating unnecessary paperwork and digitising processes will benefit citizens, robust mechanisms must be in place to ensure that drivers maintain safe standards on the road. The integration of e-challans, penalty points, and insurance premiums is designed to make drivers more accountable while reducing the administrative burden on enforcement agencies.

Next Steps

These proposals were discussed with state transport ministers and senior officials during a two-day meeting held on January 7 and 8, 2026. Officials expect that several of the reforms, including the removal of medical certificate requirements for the 40–60 age group and updates to digital processes, could be implemented in the near term, potentially by March 2026.

The introduction of a behaviour-based penalty system, however, will require careful coordination between enforcement databases, insurance providers, and transport authorities. The government will need to ensure that violations are accurately recorded against individual drivers and that the system is applied consistently across states.

Conclusion

India’s driver licence system is poised for a significant transformation, combining simplification, digitisation, and behaviour-based enforcement. By removing redundant paperwork, introducing penalty points, linking violations to insurance premiums, and digitising vehicle-related services, the government aims to enhance road safety, reduce procedural delays, and improve citizen convenience. Experts emphasize that rigorous monitoring, driver-specific enforcement, and continued health assessments for older drivers will be crucial to the success of these reforms.

If implemented effectively, the changes could serve as a model for modern, behaviour-driven traffic governance, balancing the twin goals of ease of living and safer roads for all Indians.