Last month, IRDA increased the premiums of third party motor insurance cover for all vehicles that hit the road. For goods carrying or commercial vehicles the rise in premiums is almost 68%. This increase was made effective on 25th of April.
Drivers of goods carrying vehicles are already feeling the pinch. With the recent hike in the prices of petrol, they are worried that diesel prices may also increase. Because of the sudden jump in the price of third party liability premiums, transporters are worried that this may have an impact on the prices of everyday consumables like fruits, vegetables, pulses, grains etc.
Due to a combination of these factors and more, there is a sudden rise in the transportation costs. Bombay Goods Transport Association (BGTA) has asked All India Motor Transport Congress (AIMTC) to discuss these issues with the Union Ministry.
AIMTC president G R Shanmugappa said that, in their discussions with the ministry next week, they will demand that IRDA should withdraw the new premium rates as it is very high. He also added that they would go on a nationwide agitation, if they fail to revise the rates.
