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Detariffing: Govt wants IRDA group to listen to truckers' views

Sarbajeet K. Sen

Apprehending trouble if the truckers are left out, the Ministry has reminded the group that there has already been an all-India transport strike in April.

New Delhi , Sept. 18

UNWILLING to mess with the powerful truckers' lobby, the Government has asked the group constituted by the Insurance Regulatory and Development Authority (IRDA) to look into detariffing of motor insurance not to firm up its views without hearing out or taking on record the views of the transport industry.

Clearly stating that it does not want to face any fresh unrest from the transporters due to grievances on insurance matters, the Ministry of Road Transport and Highways has asked Mr S.V. Mony, Chairman of the group, and Vice-Chairman, AMP Sanmar, to give a chance to the transport industry to place its views. The group was set up to study the Justice Rangarajan Committee report on motor insurance detariffing.

Apprehending trouble if the truckers are left out, the Ministry has reminded the group that there has already been an all-India transport strike in April bringing freight movement to a grinding halt.

Hinting that the insurance issue could needle the truckers once again, the Ministry has pointed out that one of the major demands of the transporters during the strike was related to difficulties on third-party insurance. In what is also being perceived as `lack of transparency' by the Ministry as well as the truckers' body, the IRDA has not nominated an industry representative in five-member group.

Others in the group are Mr Mickey Brigg, CEO, Royal Sundaram Insurance, Mr M.K. Tandon, former CMD, National Insurance Co, Mr Jagdish Khattar, CEO, Maruti Udyog Ltd, Mr Vardarajan, Legal Advisor IRDA, and a Government representative.

While the group is expected to submit its report by the end of current fiscal, the IRDA has said that motor detariffing should take place in 2005.

"To accord transparency in the procedure, (the ministry) would urge that the users who would be primarily affected as a result of the report of the group be also given a chance to present their view points before the group," the Road Transport Ministry has said. It has pointed out that the two principal stakeholders in the matter are the All-India Confederation of Goods Vehicle Owners' Association (ACOGOA) and the All-India Motor Transport Congress (AIMTC).

Highlighting the transporters' uneasiness at the present arrangement, the ACOGOA on its part has written to Mr Mony mentioning its "deep distress" at being left out of the deliberations.

"We, as well as other interest groups, must be given the due opportunity to participate in this Group and contribute to its deliberations," Mr Chittaranjan Dass, Vice-President of the association, has said.

Stating that group has been "formed in a selective manner" the association has said that "third-party insurance, legal or own-damage, is an issue of great concern for us, the owners' of commercial vehicles."

Article E-Mail :: Comment :: Syndication

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