The Hindu : Business : Transporters oppose premium hike in third party insurance

Online edition of India's National Newspaper
Saturday, Dec 09, 2006
ePaper

Business

Business

Transporters oppose premium hike in third party insurance

Special Correspondent

NEW DELHI: The All India Motor Transport Congress (AIMTC) and the All India Confederation of Goods Vehicle Owners' Association (ACOGOA) on Friday voiced their concern over the hike in premium rates for the third party liability cover in motor insurance by the Insurance Regulatory and Development Authority (IRDA), contending that the new tariff would hit every type of vehicle owner, particularly commercial vehicles. While the IRDA gave freedom to general insurance companies to fix the tariff for various covers from January 7, no such flexibility was given for third party insurance in motor vehicles, the two bodies said in a separate statement.

According to the AIMTC, the premium for third party insurance in heavy vehicles will increase by 126-150 per cent to Rs. 8,000-9,000 from the existing Rs. 2,940-3,980, as per IRDA's new rates.

While B. Channa Reddy, President of the ACOGOA, termed the 150 per cent hike as "sheer betrayal of genuine interests of the insured,'' his AIMTC counterpart, Gurinder Pal Singh, described it as "unjustified and unfair to every type of motor vehicles and the worst sufferers would be the owners of commercial vehicles.''

At present, the margin in the transport industry was just 2 to 5 per cent of earnings and any move to increase the insurance premium would hit transporters, they said. The bodies, representing the commercial and passenger road transport industry, said any increase in premium needed to be mutually decided by transporters and insurance companies. They said that they would resist the hike to the hilt.

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section