News eDaily20 Apr 2017

India:CTPL auto premiums cut 2 weeks after new tariffs took effect

20 Apr 2017

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.

 

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