Transports strike on Jan 25; AITWA, AIMTC not in

New Delhi, Jan 20: The All India Transporters Welfare Association (AITWA), a prominent body of transporters, today said it would not participate in the proposed indefinite strike of transporters from January 25 against ''the ad hoc arbitrary increase'' in premium rate for Third Party insurance, saying going on strike was not the solution to any problem.

''The AITWA feels that the proposed hike of 70 per cent is still too high to be absorbed by the hard-pressed road transport industry.

The hike will adversely affect the industry, particularly small truck owners,'' AITWA Working President Roshan Lal Gorakhpuria said in a statement here.

The AITWA, he said, would appeal to the government to constitute a high-power committee to go into the issues of reforms in motor vehicle insurance policy.

''Meanwhile, we morally support the protests of the road transport sector in the matter of proposed insurance premium hike,'' he added.

The strike has been called by All India Confederation of Goods Vehicle Owners' Associations (ACOGOA) in protest against ''the arbitrary, ad hoc increase of over 150 per cent in rates of premium for Third Party motor insurance.'' 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, ACOGOA President B Channa Reddy said yesterday.

However, All India Motor Transport Congress (AIMTC), another representative body of transporters, said it had called off its proposed strike on the issue, which was to begin from today, on the assurance of the government to reduce the hike in premium of Third party insurance cover.

''After day-long deliberations with the Finance Ministry officials on Thursday, the government agreed to consider the request to reduce the Third Party premium hike to 70 per cent from 150 per cent as announced earlier,'' the AIMTC said. ''This is a positive step and we welcome the government initiatives on resolving the problem of transporters. Consequently, we call off the proposed strike of transporters from January 20,'' it added.

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, meanwhile told UNI over phone from Bangalore that despite the discordant note struck by the AIMTC and AITWA, the strike would begin as per schedule on January 25.

''The decision of the two transport bodies is unfortunate, but ACOGOA would go ahead with the proposed strike,'' he said.

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.

He said a meeting was held between IRDA and ACOGOA and AIBOC representatives 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.

UNI

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