AIMTC demands rollback of third party premium hike by IRDAI

Truckers body AIMTC today demanded recall of hike in third-party premium (TPP) by IRDAI saying it was done at the behest of insurance companies.
Demanding that the hike be "immediately taken back to avoid any complications", All India Motor Transport Congress (AIMTC) alleged that the notification regarding hike was issued despite assurance by Insurance Regulatory and Development Authority of India (IRDAI) Chairman to consult the transporters before any such move.
In a meeting held with the Chairman, IRDAI it was assured that "TPP premium for Commercial Vehicles (Cargo & Passenger) will not be increased without final meeting with the AIMTC and justifying the increase with transparent data," AIMTC said in a statement.

It alleged the data on which IRDAI has hiked TPP is based on presumptions and assumptions only despite the fact that the transport fraternity has always been highlighting the discrepancies and arbitrariness every year.
"Even in the last financial year, there has been ample evidence from the data furnished by IRDAI wherein premium collected has been significantly increasing in commercial vehicle segment, number of policies had increased, the claim payout has come down significantly. To dodge the people of India, this time unilateral hike in TPP is in the band of 25 to 30 per cent," the statement said.
The road transport fraternity vehemently protests against the monopolistic attitude of IRDAI and the arbitrariness with which TPP premium is being hiked to appease the insurance companies, it said and demanded its rollback.

The statement said the hike was done despite the Ministry of Road Transport & Highways writing to IRDAI for consultation with stakeholders before affecting any hike in TPP.
It said the road transport fraternity is already under severe stress due to increase in operative cost and regressive regulatory regime.