A Quick Look at Delhi’s Odd-Even Rule Car System

26/08/2023

The year 2016 started on a different note for Delhiites. As the clock struck eight on a New Year’s morning, the odd-even plan of the Delhi government came to light. The govt’s knee-jerk policy to implement this unconventional car rationing formula had left Delhiites perplexed and Twitteratis with new fodder for jokes and some interesting but confusing questions, like if I go out to a friend’s party in a car that has an even number plate and returns post-midnight, will I be caught by the police for not following this system? While some called it an impractical decision, others battled for it, saying any effort to curb pollution should be tried out. From using fake number plates to buying a new car, Delhi people had already thought about jugaad. While Mr. Kejriwal declared this 15-day trial period of the rationing system a success, some experts remained skeptical about its effect on improving the city’s air quality.

When the Delhi Government’s road rationing scheme is again in force from April 15 to 30, we did an in-depth analysis to unravel the strands here.

Contents Summary show

Odd-even scheme: Top key takeaways

· For 15 days, odd-numbered cars will be allowed on roads on odd dates, and even-numbered cars will run on even dates from 8 am to 8 pm

· The scheme will be implemented based on the last digit of the vehicle’s number plate

· On Sunday, there will be an exemption, and all cars will be allowed to ply on the road

· Women, VIPs, CNG cars, two-wheelers, and vehicles used for medical emergencies have been exempted from this scheme

· The scheme will apply to cars coming to Delhi from other regions

Where did it come from?

Beijing first adopted this system in 2008, just before the Summer Olympics. It was temporary earlier, but it turned out to be so successful that it was made permanent. On the global front, countries such as France and Colombia have also implemented this road-rationing rule. This road-rationing technique dates back to the Roman age, and none other than Julius Caesar had enforced it.

What made Mr. Kejriwal take such a step?

In the last few years, Delhi’s air quality has declined rapidly. Observing that the air pollution levels in Delhi have dropped drastically, akin to “living in a gas chamber,” the Delhi High Court directed both Centre and State governments to develop comprehensive plans to curb the city’s alarming pollution level.

According to the Delhi Economic Survey, the vehicular population in Delhi has seen a 6% rise. In 2014-15, 88.27 lakh vehicles, including 27,90,566 cars and jeeps, compared to 82.58 lakhs in 2013-14.

As per the recent air quality monitoring survey released by Greenpeace, Delhi’s air quality is the most toxic air in the world due to high concentration of deadly PM (Particulate Matter) 2.5 levels, which are ten times higher than the safety limit as prescribed by the World Health Organization (WHO). As a result, nearly 32,000 people in Delhi will die due to air pollution by 2025.

According to a team of scientists at the Max Planck Institute for Chemistry in Mainz, Delhi will record the world’s largest number of premature deaths annually due to high pollution levels.

What does an odd-even scheme mean for insurance?

Due to the odd-even scheme, there might be a reduction in car insurance policy premiums as risks from a vehicle’s usage would come down. As cars would be out in the street only for half the number of days, it may help lower the risk of accidents. Mr. Sanjay Datta, chief of underwriting and claims at ICICI Lombard, said that chances for vehicle owners and insurance companies would also come down with the minimum usage of cars. However, considering the frequency of car insurance claims, there is no substantial proof to validate that only good drivers will be on the roads. Also, due to light traffic, there may be a situation of over-speeding, which may lead to more accidents.

In this situation, insurers may also plan to implement Usage-Based Insurance Premium (PAYD-Pay as you drive), which is prevalent in countries such as Japan and America. For the PAYD scheme to work, insurers will ask customers to shell out an advance premium based on the distance they will likely cover during the policy’s tenure. The insurer will install a black box gadget in a car to help track the distance covered. After a year, a policyholder will be asked to pay an extra premium if he has driven more. Alternatively, the insurer may refund the additional premium or adjust the amount in the next year’s cover. The insurer will settle the claim in case of an accident during the policy tenure.

This odd-even scheme will impact personal accident covers for passengers in the case of insured vehicles. Though all comprehensive insurance policies cover drivers, the demand for additional personal accident cover for passengers may increase in the case of carpooling. At present, the insurance premium is primarily based on the usage—private and commercial usage. Overall, insurers must look at outcomes to adjust premiums closely.

If not the odd-even rule, then what?

Left to me, I would perhaps advocate for far stricter conditions than just the odd-even system. There are various things that we can do to curb air pollution in Delhi, such as:

· Carpooling is a great way to keep Mother Nature and our pocket happy. The administration should also reward people who do carpooling

· Do away with so many exemptions in the odd-even system. It is good to see a high percentage of people following this rule; exemptions leave room for misuse

· Promote electric cars and taxis on roads. Further, the government should reduce excise duties on these cars and reward their users by giving freebies, such as free parking

· Increase the number of buses on roads so that more people use them for commuting

· Set up bike stations that let you pick up a bike from station A and drop it at station B. Make sure these stations offer services either free of cost or charge nominal fees

· It has been seen that construction dust is one of the major determinants of air pollution in Delhi

· Builders should ensure that construction dust does not fly around. They either keep the surroundings clear or wet

What’s next

While opposition parties have their views, Kejriwal’s government deserves all credit for launching such a scheme. If nothing else, it highlights the poor state of Delhi’s air pollution. This experiment has sparked an avalanche of discussion on corruption, the city transport system, respiratory ailments, government initiatives, etc. These discussions are not limited to Delhi only. People in other parts of the country have also come forward. Even the governments of Bengaluru and Mumbai plan to replicate the same system in their states. This would succeed only if we recognize the gravity of the situation and take things into our own hands. Bans are not a sign of a good economy. Be it a ban on films, books, or even-numbered cars on odd days. Instead, the government should use nudges and incentives to encourage its citizens.