Commercial vehicles on indefinite strike from Jan 25

New Delhi, Jan 19: Commercial vehicles across the country, including trucks, tankers, buses and taxis, will go off the roads indefinitely from January 25 in protest against ''the arbitrary ad hoc increase of over 150 per cent in rates of premium for Third Party motor insurance,'' a leading body of transporters announced here today.

The decision to go on strike was taken after a series of meetings with officials of the ministries of Road Transport and Finance failed to break the stalemate, All India Confederation of Goods Vehicle Owners' Associations (ACOGOA) said.

The Insurance Regulatory and Development Authority (IRDA) had announced an ad hoc increase in Third Party motor insurance, to be effective from the New Year's Day.

ACOGOA President B Channa Reddy said the organisation had taken a decision at its December 27 meeting in Bangalore that the government must consider the issue of detariffing of general insurance business and consequent hike of over 150 per cent in rate of premium for mandatory third party motor insurance.

Mr Reddy said both ACOGOA and All India Bus Operators' Confederation (AIBOC), in their representations to the Insurance Regulatory and Development Authority (IRDA) and the Ministries of Finance and Road Transport and Highways, had explained their viewpoints on the issue.

It was urged that since the new Motor Insurance Pool Scheme would now be managing the Third Party Motor Insurance business, it should not begin with a hike in premium rate, based on bogey of high claims outgo, spread by public sector insurance companies.

Subsequently, General Insurance Council (GIC), in the presence of ACOGOA representatives, made a presentation to the Road Transport and Highways Ministry on January 4.

Another meeting was held between IRDA and ACOGOAand AIBOC at Hyderabad on January 16. A day later, the Department of Road Transport and Highways held a meeting with the representatives of truck and bus operators, where a senior officer of the Finance Ministry was also present.

The vehicle owners contended that the new Motor Insurance Pool Scheme started at the rate of premium prevailing on December 31, 2006, and the same could be revised upward or downward in the light of experience gained from its functioning.

However, the government stuck to its stand that let the beginning be made with 150 per cent hike and a review could be made later.

''In view of the stalemate, the indefinite suspension of work by goods and passenger vehicle owners nationwide will begin from the mid-night of January 25-26,'' Mr Reddy said.

''Any autocratic fiat to subjugate the insured vehicle owners will be resisted in all legitimate manners, including stoppage of operations,'' he said, adding that ACOGOA would spearhead the agitation on behalf of all types of commercial vehicles.

UNI