Truckers, insurers meet on premium hike issue

Representatives of the Akhil Gujarat Truck Transport Association (AGTTA) held a round of meetings with the officials of the four general insurance companies to sort out various issues.

The meeting was held in Ahmedabad on Saturday at the Gujarat Chamber of Commerce and Industry and was attended by officials of the Insurance Regulatory and Development Authority (Irda).

AGTTA general secretary Mukesh Dave said while all the problems cannot be sorted out immediately, the officials from insurance companies have at least agreed to consider some of the demands of truckers.

"Even the Irda has assured us that if any of the insurance companies are flouting any of the guidelines laid down, then action will be taken against them," Dave said.

He said to begin with, all the four general insurance companies are still in the process of preparing their own rules, as all these became independent entities after private sector participation was allowed in the insurance sector.

"We have raised five broad issues and the officials have agreed to consider the demands," he said.

The main issue of third party insurance premium is still unresolved. "They told us that the revenue to cost ratio in case of insurance claims was high and we attempted to tell them that if it was for third party insurance, then truckers were not involved," Dave said.

Truckers have been agitated by insurance companies hiking third party insurance premiums. About a fortnight ago, when the All India Truck Transport Association president Babasaheb Dhumal visited Gujarat, he called for boycotting any one of the general insurance companies to force them into decreasing third party insurance premium.

He said this after the newly elected members of the truckers association raised the issue of hike in annual third party insurance premium from the existing Rs 4,200 to Rs 8,200 over the past six months.

About six months ago, annual third party insurance premium amounted to Rs 4,200, but this has been increased to Rs 8,200.

"We do not get more than Rs 18,000 to Rs 20,000 in case of an accident under third party insurance, while the costs incurred are much higher," said Mavji Dodi, president of AGTTA.

There are over 20,000 truck transporters in Gujarat, who operate around 65,000 trucks. Ahmedabad tops the list with 3,000 operators.