Insurance-fuelled truckers strike prevails as regulator gives in

Insurance-fuelled truckers strike prevails as regulator gives in | Insurance Business

Insurance-fuelled truckers strike prevails as regulator gives in
Trucking associations in India have scored a victory after going on strike for more than a week, as the country’s insurance regulator agreed to reduce the proposed premium hike for third-party motor insurance.
 
The strike had disrupted many business operations across the country, with the prices of many commodities rising due to scarcity and broken supply chains.

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The Insurance Regulatory and Development Authority of India (IRDAI) has accommodated the demands of the truckers, as the premium increase will only be 27%, compared to the 40% that was initially proposed, reports the Times of India.
 
However, the reduction is only for heavy commercial vehicles, with most private vehicles still subject to an additional 40% of premiums due to lack of opposition from the sector.
 
“Though IRDAI comes out with the draft exposure report for all vehicles before final revision, private vehicle owners hardly respond to it,” said S P Singh of Delhi-based transportation think-tank IFTRT.

Whether this latest development will lead to more calls for IRDAI to end its practice of dictating third-party motor insurance premiums for all vehicles remains to be seen.


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