Protest against the recent hike on vehicle insurance- Lorries to be on strike on 7th April
Posted on: 31/Mar/2018 11:22:10 AM
As a token protest against the recent hike in the vehicle insurance by up to 40%, the Lorry owners have decided to go on strike on 7th April.
IRDAI (The Insurance Regulatory and Development Authority of India) had announced that the vehicle insurance amounts will be up by 40% from tomorrow (1st April).
This hike has been initiated by IRDAI in order to counter the losses incurred due to payments of claims on the third party accident insurance coverages.
This will lead to the subsequent increase in the rental rates of the lorries/trucks and thereby, the price of the commodities carried by them as well.
The lorry/truck owners explained regarding this issue:
‘The prices of the spare parts of vehicles, petrol, and diesel are already increasing continuously, And there are other difficulties like getting the drivers for the vehicles and their asking for higher wages. This has led to many lorry/truck owners to sell their vehicles.
In this situation, the vehicle insurance amount has also been increased adding to the above financial burdens. This will make the running of the lorry transport business rather difficult. Even discussions with the central minister of Highways and transport have not yielded any positive results.
From tomorrow (Sunday, 1st April) apart from the hike in insurance amount, a GST of 18% is also imposed.
This may lead to an increase in the vehicle rental charges by 20% and the prices of commodities by 40%.
In view of the above circumstances, as a token protest against the newly increased vehicle insurance amounts, The lorry/truck owners have planned to go on strike on behalf of the All India Transport Congress on 7th April.`
