Companies seek higher premium for third party motor insurance

Complaining loss,insurance companies are seeking permission to charge higher premium in the category of third party insurance on commercial vehicles.

The companies said the amount of third party claims on commercial vehicles is grossly out of sync with the income from premium in this segment and therefore it is bleeding them.

Meanwhile,transporters said the companies are silent on earnings from other segments that absorb the losses incurred in case of commercial vehicles.

Story continues below this ad

The Insurance Regulatory and Development Authority (IRDA) is yet to decide on the request of an upward revision by the General Insurance (GI) Council.

If allowed,it will mean a jump in the freight rates across India. This in turn will hit the prices of all things that are transported by road.

Ishwarchandra Goyal,who is on the insurance committee of the All India Motor Transport Congress.

Stay updated with the latest - Click here to follow us on Instagram