Association flays steep hike in insurance premium for tourist vehicles
Coimbatore: The Coimbatore Tourist Taxi, Van and Travel Owner's Association has urged the Central Government to intervene and ensure a roll back of the steep hike in third party insurance premium for tourist vehicles.
The association at a recent meeting resolved to condemn the steep hike in third party insurance premium for the tourist vehicles since it would make it unviable for the operators.
In a release issued here, the president and secretary of the association, K. Natesan and B. Maheskumar, pointed out that the Insurance Regulatory Development Authority brought in a 150 per cent hike in insurance premium with effect from January 1, 2007.
For example, a vehicle with a seating capacity for four persons operated as a tourist vehicle had to pay a tax of Rs. 1,050 till March 31, 2006.
The same had been revised to Rs. 3,375. If the operators instead of just a third party insurance cover opted for a comprehensive insurance cover including the risks arising out of earthquake, fire, cyclone, riots and even driver risk, the total premium per vehicle with a seating capacity of four persons would work out to Rs. 17,100 per annum.
Such a hike would only result in the tourist vehicle operators passing it on to the customers by hiking the hire charges, thus making it unviable not only for the operators but also for those availing tourist cabs. Hence, the Central Government should immediately intervene and ensure that the steep hike in insurance premium was withdrawn. It should also revise the insurance rates to make it viable. In the event of failure to concede the demands, the tourist operators have resolved to support the strike call given by the All India Motor Transport Congress.
The association at a recent meeting resolved to condemn the steep hike in third party insurance premium for the tourist vehicles since it would make it unviable for the operators.
In a release issued here, the president and secretary of the association, K. Natesan and B. Maheskumar, pointed out that the Insurance Regulatory Development Authority brought in a 150 per cent hike in insurance premium with effect from January 1, 2007.
For example, a vehicle with a seating capacity for four persons operated as a tourist vehicle had to pay a tax of Rs. 1,050 till March 31, 2006.
The same had been revised to Rs. 3,375. If the operators instead of just a third party insurance cover opted for a comprehensive insurance cover including the risks arising out of earthquake, fire, cyclone, riots and even driver risk, the total premium per vehicle with a seating capacity of four persons would work out to Rs. 17,100 per annum.
Such a hike would only result in the tourist vehicle operators passing it on to the customers by hiking the hire charges, thus making it unviable not only for the operators but also for those availing tourist cabs. Hence, the Central Government should immediately intervene and ensure that the steep hike in insurance premium was withdrawn. It should also revise the insurance rates to make it viable. In the event of failure to concede the demands, the tourist operators have resolved to support the strike call given by the All India Motor Transport Congress.
Source:The Hindu
