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Transport operators plan strike against hike in motor insurance premium

Trucks, buses, three-wheelers and all other commercial vehicles will suspend operations from August 22 midnight, to protest against the 'non-performance' of the insurance-related Tariff Advisory Committee that was set up following an agreement between the finance ministry and the All India Motor Transport Congress in April last year.

A 10-day strike by truckers in March-April last year had caused large losses and led to spiralling prices of essential commodities.

According to AIMTC, TAC was to keep the proposed rate increase of the motor insurance premium in abeyance. This increase was originally to be enforced from April 1 last year. But TAC agreed to reconsider the General Insurance Company's proposal for the increase.

''TAC made a perfunctory show of having reconsidered GIC's scheme and enforced the hike in premium rates from February 15,'' AIMTC president O P Agarwal told the media in New Delhi today.

He said AIMTC had been constantly approaching the finance ministry, surface transport ministry and TAC from April 9 last year to February 14 and thereafter till July 11, pointing out the 'anomalies and irrationalities' in the premium hike.

AIMTC said that since none of the representations had been acknowledged, the national executive of the congress decided, on July 21, to suspend operations indefinitely from August 22, midnight. AIMTC added that the worst sufferers of the 'exorbitant hike' in insurance premium were the commercial vehicles.

''TAC, the so-called quasi-judicial body, is nothing but GIC's replica. The same person is chairman of both TAC and GIC. The chiefs of four subsidiary GIC companies are members of TAC.''

AIMTC has been demanding that GIC's proposals should be examined by an independent body like the Insurance Regulatory Authority of the Bureau of Costs and Prices and, till the time this exercise is conducted, the motor insurance premium rates should be kept in abeyance.

Among other things, AIMTC is also demanding the declaration of road transport as an industry, stopping the toll levied on existing roads, removing octroi check-posts and rationalising the permit system for goods and passenger vehicles. It has also asked that a national tariff commission be set up for fixing fare rates for stage carriage vehicles.

UNI