Insurers set to hike 3rd party premium

Mumbai, March 29: Amidst threat of a nationwide strike by truckers, the general insurance industry has favoured a moderate hike in the third party motor premium to the tune of 40-50 per cent against a steeper increase proposed by regulator IRDA.

The regulator had on March 9 proposed a steep increase in the third-party premium, ranging between 14 and 108 per cent from April 1. This is on top of 9-20 per cent hike already effected across vehicle categories for this fiscal. “The industry is of the opinion that the third party premium rates are not adequate, considering our claims experience. Hence, in our view, the premium hike must be in the range of 40-50 percent as it will help us breakeven under the segment,” New India Assurance chairman and managing director G. Srinivasan said. He also heads the General Insurers (Public Sector) Association.

Mr Srinivasan said the industry has already made its representation before the IRDA on the issue through General

The regulator on March 9 proposed a steep increase in the third-party premium, ranging between 14% and 108% from April 1.

The national transporters lobby has strongly opposed the proposed hike.

Insurance Council.

Meanwhile, the national transporters lobby the AllIndia Motor Transport Congress (AIMTC) has strongly opposed the proposed hike and warned of a nationwide strike.

“During its emergency meeting held on March 26, we had decided that if IRDA does not listen to us, then we have no option but to go on a nationwide strike,” AIMTC president Bhim Wadhwa said in a statement. — PTI