The Hindu Business Line : MV Act: Officers of PSU insurers want level field

OFFICERS of the public sector general insurance companies have expressed serious concern about the Government's lackadaisical attitude in amending the Motor Vehicles Act

While reiterating their demand for a level-playing field with private players in the same space, the Working President of the Confederation of General Insurance Officers' Association, Mr T.R. Par Oli, said that the Government's bias was obvious from the concessions that were being extended to their competitors in the private sector.

"Competition is welcome, but the rules of the game must be fair," he told Business Line.

`The repeated demand for transfer of commercial vehicles portfolio to the Surface Transport Ministry has gone to deaf ears. The Government has also not taken any tangible step to contain the bleeding losses booked in the motor TP (third party) portfolio. This undue tilt should be plugged by amending the Motor Vehicles Act. If left as such, we will all sink within the next five to seven years,' he said and emphasised the need for introduction of a structured compensation.

Stating that the companies' corporate strategy should aim at protecting public funds with a stress on underwriting profitability without the cosmetic coat of growth, he said, "Even here, the business of underwriting commercial vehicles is vested only with the public sector companies. There are six companies on the other side. Why can't they be allowed to share in underwriting commercial vehicles?" he asked.

Reverting to the recent developments within the industry, he conceded that the private players were inching their way in the metros and urban centres. "We did not have a committed marketing team until now. We are prepared to take the challenge. But there is no motivation or recognition for our efforts. Our wage revision is long overdue. Promotions have been withheld. Such issues need to be addressed immediately," he said.

The federation is slated to meet in New Delhi on September 11 for discussions on wage revision.