Report On 3rd Party Motor Insurance Premia Next Week Next Week

The sub-committee set up by the Tariff Advisory Committee (TAC) to review the hike in the third party motor insurance premiums is expected to finalise its recommendations within the next week.

At present, the sub-committee is considering the representations made by various transport associations. According to sources, it will be at least a couple of months before the revised premium rates will become applicable.

General Insurance Corporations earlier attempt at hiking third party premium rates by over 600 per cent, effective April 1 this year, had led to a nine-day, nation-wide strike by transport operators following which GIC had to withdraw the notification.

 

Speaking at an international seminar on insurance organised by Mumbai Insurance Institute yesterday, GIC chairman said the third party rates had not been revised for a long time. He was, however, optimistic that an amicable solution could be arrived at and an upward revision in the third party premium would be possible.Mittal said insurance premia abroad were as high as $1,100, covering nearly 20 to 25 per cent of the value of the vehicle. In contrast, the rates in India were as low as $4 and hence the move to raise the rates to a realistic level of $30, he said.