News
5
Oct
2017
Motor Transport vehicles to go on nationwide indefinite strike from 8th Midnight
SILIGURI: Motor Transport vehicle owners in northern India are going on indefinite strike from 8th April midnight instead of earlier scheduled 20th. The strike is being called to highlight various demands including withdrawal of 40% hike in premium for mandatory third party insurance
"The 'chakkajam' will begin at the end of 8th and beginning of 9th of April ," clarified K K Bansal, All India Motor Transport Congress (AIMTC) Executive Member .
"The decision of preponement has taken place following 'no positive outcome' of a meeting held on today (Tuesday) between AIMTC delegates and IRDA Chairman T S Vijayan in presence of Joint Secretary, Ministry of Road Transport & Highways. As per IRDA guideline, insurance companies have increased premium for third party insurance , mandatory for all vehicles, by 40% from 1st April. We strongly oppose that," said Bansal,
"To join our brethren in South India those who are on movement since 30th of March on these demands, AIMTC is calling all to stop booking for long haul trips. All vehicles should reach their locations or stand wherever they reach at midnight of April 8 ," said AIMTC President S K Mittal.
As AITMC officials detailed, for a vehicle of 7.5 to 12 ton load capacity, annual third party premium was Rs 5,920 in 2007-08 and it went up to Rs 15,365 in 16-17. But new rate for FY 17-18 is Rs 23,047. For a large vehicle of above 40 ton capacity, the premium in 2007-08 was Rs 6,770 that became Rs 25,800 in 16-17 and to become 38,700 in FY 17-18.
Understandably, the situation is going to put entire country under difficult situation as in India, road freight constitutes around 63% of the total freight movement. Surface transport covers more than 18, lakh kms of road length carrying around 3000MMT (million metric ton) of load annually.