Sir,

As you are kindly aware that our association is an apex body of commercial and passenger road transport industry with more than 3400 affiliate associations and, members and more than 4 millions vehicles, 17 million people employed directly and indirectly in the industry and working for the economic growth of the country.

We are deeply concerned by the announcement of Chairman, IRDA on 150% increase in Third party premium in Motor Insurance. The exorbitant hike in Insurance premium which is most unjustified hit hard and unfairly to every type of Motor Vehicles, but the worst sufferers are the owners of commercial vehicles.

It is worthwhile to mention here that the most of Insurance Companies are showing a positive growth in the last few years in double digits and rise in their profits. The insurance Companies themselves admitted that in the Motor Insurance section, new vehicles sector they are making a profit of 40% and in the Third Party Insurance they are losing 18% which accounts for hardly 10% - 15% of the total vehicles and premium collected.

It is a well know fact that any increase in premium will be decided mutually by the transporters and Insurance Companies in the past.

Presently the margin in the transport industry is as low as 2 to 5% and any move to increase in premium arbitrary will hit transporters in the bottom line and Insurance Companies taking advantage of compulsory Third Party Insurance Cover for vehicles as per M.V. Act forced the transporters to accept the increase arbitrarily and the transporters will have no option but to start a nationwide agitation.

(Gurinder Pal Singh)

President