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Traffic Managers worldwide are faced with an increasing demand forstate-of-the-art intelligent traffic systems：both for statistics purposes as for safety issues．Fast-developing urban regions have a need for information on trafficstreams，to take well-founded decisions regarding new road infrastructure andchanges to the existing infrastructure．Also on highways，traffic congestion andsecondary accidents are nOW costing thousands of lives and billions of dollars every year．Therefore，traffic managers need an effective incident management system．Traditionally，loops and CCTV cameras provide ample information to directtraffic flows and assemble statistics．But their information is limited.and in-creasing traffic volume and complexity has created a need for more optimized systerns；highly automatic incident management systems in particular．Today，video image processing systems handle both traffic data collection and automatic incident detection．This ITS technology has proven to be very reliable．Its incident detection shows a high detection rate，a short time to detect，fast incident verification and a low false alarm rate．This paper discusses the wide range of capabilities and some of the limitations of video image processing for highway incident detection as Traficon has experienced it over the past 20 years．Two main items are focused：nowadays videodetection has proven to be a very reliable incident management tool．This ITStechnology is the fastest system to detect incidents．Next to incident manage-ment，this paper will also focus on traffic data collection via Video Image Processing(VIP)．A definition is given of traffic data quality and some new insightswill demonstrate that video detection，when it is used correctly，offers great potential for highway data acquisition．A detailed case study of the highway incident detection and traffic data collection project in Kuala Lumpur(Malaysia)willserve as an illustration．