News13 Apr 2017

India:Truckers back to work after IRDAI reduces premium hike

13 Apr 2017

Truckers in south India called off their week-long strike last Saturday after a main demand for a reduced premium hike for motor third-party liability insurance was accepted by the insurance regulator.

IRDAI, giving in to demands, agreed to reduce the hike in third-party insurance premium rate from 40% to 27%.

According to Mr S.K. Mittal, President of the All-India Motor Transport Congress (AIMTC), the IRDAI also agreed to a second demand of the truck associations. “They have agreed to form a consultative committee that will have representation from the Ministry of Road Transport and Highways (MoRTH), Ministry of Finance, and five members from the AIMTC.” he said. The consultative committee will decide insurance premiums and other issues, according to local media reports.. 

The breakthrough came during the talks between leaders of truckers' associations and IRDAI on 8 April. During two previous rounds of negotiations, the insurance regulator had stuck to its stand of not reducing the premium hike which had taken effect on 1 April. IRDAI decides the tariff rates for motor third-party liability insurance.

Truck transport bodies had threatened a nationwide strike. Bus operators were to have joined them on 10 April. Truckers in five states and union territory of Puduchery were on strike for a week from 30 March to press for various demands. The strike had badly affected the movement of goods across the region and was beginning to have an impact on the supply of essentials.

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