The Andhra Pradesh Lorry Owners’ Association (APLOA) has expressed displeasure over a steep hike proposed in the premiums of motor third party insurance cover for 2014-15.
Motor third party insurance is mandatory for all vehicles operating on roads across the country. The Insurance Regulatory and Development Authority (IRDA) has proposed a hike of 18.41 per cent (from Rs. 14,873 to Rs. 17,611) hike for two-axle lorries, 54.10 per cent (Rs. 14,974 to Rs. 23,075) for three-axle lorries and 111.12 per cent (Rs. 15,035 to Rs. 31,742) for six-axle trucks.
‘Unfair decision’“This is an unfair decision. Even in 2013, a similar attempt to increase TP premium by 107 per cent by the IRDA had to be withdrawn following stiff resistance by All India Motor Transport Congress (AIMTC) which insisted that the insurance companies show their profit and loss balance sheets. Resultantly, a 20 per cent hike was introduced,” Y. V. Eeswara Rao, general secretary of APLOA told a press conference here on Saturday.
Mr. Rao said for private cars, it would be an increase of 25-137 per cent and for two-wheelers, it would be 1-45 per cent.
Citing a copy of the Indian Information Bureau (IIB) data, he said the total collection of third party premium for 2009-2013 was 12,759.04 crore against claims paid.
