December 30, 2006
Press Release
The Chief of Bureau
Electronic/ Press Media
Death blow to Transport Operators
Dear Sir,
As you are kindly aware, that our Association is an Apex Body of Commercial and Passenger Road Transport Industry in India with more than 3400 affiliate associations and, members with more than 4 millions vehicles, 17 million people employed directly and indirectly in the industry and working for the economic growth of the Country.
The proposal of Insurance Companies to increase their premium by 150% for the Third Party Cover arbitrarily with effect from 1st January 2007 in the name of liberalization of Insurance sector is totally unjustified.
Even Though the Private Companies entered into the Insurance Sector, they are restricting their operation to premium on new vehicles. On the other hand the Indian Insurance Companies avoiding accepting the Third Party Premium even though the used vehicles are certified fit and insurance worthy. Transporters are forced to accept the increase the Third Party Insurance premium as it is mandatory nature under M.V. Act. It can reveal that the major reasons for the increase in the motor claims experienced because of an undue emphasis on increasing premium without containing the rampant corruption in the motor claim resulting heavy losses for the insurance companies.
In our country, most of our transporters are single / two vehicles owners will not be in a position to accept this increase, all these facts were explained to IRDA and insurance companies ,still the insurance were gone ahead with the increase in Premium of Third Party Cover which not acceptable to us.
Conclusion:
We would not like to have a confrontation with the Government and request them to see the reason to defer the increase in Third Party Insurance Cover or else we have no other option but to go for a Nation wide Trade Bandh from 20th January 2007.
Thanking you,
Yours faithfully,
(Gurinder Pal Singh)
President
Mob. 98100 56128