General insurers want further rise in third-party premium

General insurers in India feel the recent increase in premium rates of motor third party premiums has not been adequate. Through the General Insurance Council, the insurers have made a representation to Insurance Regulatory and Development Authority (Irda), asking for further revision of rates.

Two weeks ago, Irda had announced a proposal to increase motor TP premium rates by an average of 35 per cent for vehicles, including private cars and commercial vehicles from April 1.

G Srinivasan, CMD of New India Assurance, said, "In segments like commercial vehicles, we need a 60 to 70 per cent raise to make it a viable business." Meanwhile, other transporter organisations, including the All India Transporters' Association (AITA) have opposed the Irda proposal to increase motor TP premiums.

Irda, in its proposal, had said all stakeholders' views would be taken into account, before taking a final decision to increase premiums and quantum of increase would be also finalised thereafter.