The Hindu Business Line : Third party premium rate hike: transporters threaten strike

NEW DELHI: Insurance regulator Insurance Regulatory and Development Authority (IRDA) has defended the recent hike in third party premium rates of commercial vehicles - a decision that has prompted transporters to threaten launch of a nationwide indefinit e strike from January 25.

Truck operators across the country are peeved by the increase in premium on third party insurance, which has been hiked by 126-150 per cent to Rs 8,000-9,000 from the existing Rs 2,940-3,980 with effect from January 1.

Defending the hike, IRDA Chairman, Mr C S Rao told PTI that the regulator had held four rounds of discussion with the operators and insurers before fixing the new tariff.

"The rationale of hike of up to 150 per cent was explained to them," he said.

However, if transport operators feel the premium hike is too steep, IRDA is open for any kind of representation, Mr Rao said. "We have always welcomed representations."

Meanwhile, All India Confederation of Goods Vehicle Owners' Associations (ACOGOA) said all commercial vehicles will stop operating from January 25 to protest the increased premium rates for Third Party Motor insurance.

"All commercial vehicles, including trucks, tankers, buses and taxis shall be off the roads indefinitely from January 25 till the arbitrary ad-hoc increase in premium rates announced by (IRDA) for third party motor insurance is withdrawn,'' ACOGOA Presid ent B Channa Reddy said in a statement. - PTI

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