Transporters' strike suspended

New Delhi, Jan 24 (UNI) The indefinite strike by owners of commercial vehicles, which was to begin from mid-night tonight against ''the ad hoc arbitrary increase'' in premium rate for Third Party insurance, has been postponed, a leading body of transporters announced here today.

''The call for indefinite strike has been suspended following a series of fruitful discussions with the Secretaries of Finance and Road Transport and Highways Department,'' All India Confederation of Goods Vehicle Owners' Association (ACOGOA) President B Channa Reddy said in a statement.

ACOGOA is the apex federation of associations and unions of goods carriage owners across the country.

Mr Reddy said ACOGOA's emphasis all along was that more than the rate of tariff, there was an imperative need for streamlining the statutes governing the Third Party motor insurance.

''With such a streamlining, the revision in rates of premium was meaningless,'' he pointed out.

Mr Reddy said the government had accepted the proposals by ACOGOA in this regard and agreed to amend the insurance provisions in the Motor Vehicles Act, 1988, stipulating that limitation would be placed on time for filing of claims and minor injuries would be excluded from mandatory adjudication by the Motor Accidents Claims Tribunal (MACT).

The government further agreed that the jurisdiction of MACT would be restricted to the place of accident and such other modifications which would prevent undue claims outgo.

Mr Reddy said the government had also accepted the suggestion for setting up a Standing Committee on Commercial Road Transport, comprising representatives of all stake-holders, including state governments.

''This committee will meet regularly where problems of goods and passenger vehicle owners shall be addressed promptly obviating the need for frequent agitations,'' he added.

The strike had been called by ACOGOA in protest against ''the arbitrary, ad hoc increase of over 150 per cent in rates of premium for Third Party motor insurance.'' Earlier, two other transporters' bodies -- All India Transporters Welfare Association (AITWA) and All India Motor Transport Congress (AIMTC) -- has decided against joining the strike, saying going on strike was not the solution to any problem.

They had also expressed satisfaction over the government's assurance to reduce the premium from 150 per cent to 70 per cent.

''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.

AIMTC, which was to launch its strike on January 20, called it off on the assurance of the government to reduce the hike in premium of Third party insurance cover.

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 had protested the move, saying 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.

It also 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.

UNI