The insurance regulator IRDAI on Monday reduced premium rates of motor compulsory third party liability (CTPL) insurance for some categories of vehicles for 2017-18, less than three weeks after raising them by up to 40%.
This week's cuts means that premiums will fall by 8.5% from the tariffs that came into effect on 1 April, the start of the new fiscal year. IRDAI says that Monday's changes have retrospective effect from 1 April. CTPL premiums are set by IRDAI.
The new changes apply to private cars exceeding 1,000 cc and 1,500 cc, agricultural tractors, special types of vehicles and two-wheelers. More significantly, the latest revised rates mean reduced tariffs for most public goods-carrying vehicles (other than three-wheelers), as well as for private goods-carrying vehicles of over 40,000 kg in capacity.
Truckers in southern India went on a strike for about 10 days in late March to early April, protesting against the original steep 40% hike in the mandatory motor third party rates and also held discussions with the regulator seeking a lower increase in tariffs. They won a concession from IRDAI.