Bus, Car Operators Seek Extension In Validity Of Motor Insurance
Money & Banking
Amidst the Covid-19 led crisis, Bus and Car Operators Confederation of India has urged the insurance regulator IRDAI to extend the validity of vehicle insurance.
“Operators cite that the vehicles have been grounded since lockdown, therefore third-party damage is ruled out. Since a major part of the premium amount is paid towards third-party damage, the insurance companies should increase validity equal to the number of lockdown days,” BOCI said in a statement on Monday.
BOCI operators run 17 lakh buses in various segments and account for 30 crore passenger trips, amounting to over 80 per cent of all public transport in the country.
The industry association has earlier reached out to various State governments and has also made representations to the Ministry of Road Transport and Ministry of Finance on the issue.
“In the current scenario, operators will not be able to pay premiums leading to a large number of defaults. We have written to the IRDAI requesting an extension of insurance coverage for all transport vehicles,” it said.
Prasanna Patwardhan, President, BOCI, said, “The public transport operators are on the verge of bankruptcy in the current situation. We are under pressure from multiple sides, fuel price hikes, reduced capacity due to social distancing norms, loan EMIs, taxes and insurance premiums and much more.”
He also asked IRDAI and government to extend vehicle insurance validity equal to number of lockdown days from the date of expiry without additional premium and no increase in annual premium for next one year.
Owners must pay about ₹1 lakh a year towards insurance premium for a bus. This might go up to ₹2 lakh for premium buses, he further added.
Published on
July 06, 2020
Amidst the Covid-19 led crisis, Bus and Car Operators Confederation of India has urged the insurance regulator IRDAI to extend the validity of vehicle insurance.
“Operators cite that the vehicles have been grounded since lockdown, therefore third-party damage is ruled out. Since a major part of the premium amount is paid towards third-party damage, the insurance companies should increase validity equal to the number of lockdown days,” BOCI said in a statement on Monday.
BOCI operators run 17 lakh buses in various segments and account for 30 crore passenger trips, amounting to over 80 per cent of all public transport in the country.
The industry association has earlier reached out to various State governments and has also made representations to the Ministry of Road Transport and Ministry of Finance on the issue.
“In the current scenario, operators will not be able to pay premiums leading to a large number of defaults. We have written to the IRDAI requesting an extension of insurance coverage for all transport vehicles,” it said.
Prasanna Patwardhan, President, BOCI, said, “The public transport operators are on the verge of bankruptcy in the current situation. We are under pressure from multiple sides, fuel price hikes, reduced capacity due to social distancing norms, loan EMIs, taxes and insurance premiums and much more.”
He also asked IRDAI and government to extend vehicle insurance validity equal to number of lockdown days from the date of expiry without additional premium and no increase in annual premium for next one year.
Owners must pay about ₹1 lakh a year towards insurance premium for a bus. This might go up to ₹2 lakh for premium buses, he further added.
Published on
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