The decision of Insurance Regulatory and Development Authority of India (IRDA) to affect minimum decrease in the third party insurance premium for their category of vehicles does not seem to go well with the auto owners of Haryana. Auto unions and the transporters have been on a warpath against the IRDA for the excessive increase in the premium of even the third party insurance.
According to auto union leaders, during March, the rates of the third party insurance for autos were Rs 4,750. Later, the insurance companies decided to enhance the rates and fixed Rs 6,692 effective from April. With the insurance premium amount going up by threefold in the recent years, auto unions said it was difficult for them to manage such a huge amount.
Telangana Auto Unions JAC leader A Sathi Reddy said, “We demanded the IRDA to decrease the rates when it was Rs 4,750 and instead of decreasing the rates, the IRDA issued orders increasing the rates to over Rs 6,000 and later decided to waive off just Rs 500,” said Sathi Reddy.