Amidst threat of a nationwide strike by truckers, the general insurance industry has favoured a moderate hike in the third party motor premium to the tune of 40-50 per cent against a steeper increase proposed by regulator IRDA.
The regulator had on March 9 proposed a steep increase in the third-party premium, ranging between 14 and 108 per cent from April 1. This is on top of the 9-20 per cent hike already effected across vehicle categories for this fiscal.
“The industry is of the opinion that the third party premium rates are not adequate, considering our claims experience. Hence, in our view, the premium hike must be in the range of 40-50 percent as it will help us break-even under the segment,” New India Assurance Chairman and Managing Director G Srinivasan told PTI. He also heads the General Insurers (Public Sector) Association.
Srinivasan said the industry has already made its representation before the IRDA on the issue through General Insurance Council. Meanwhile, the national transporters lobby the All-India Motor Transport Congress (AIMTC) has strongly opposed the proposed hike and warned of a nationwide strike.