Third Party Insurance Premium of Commercial Vehicles poised to increase

General Insurance Council has reportedly proposed a raise of 80% on the current rates for all commercial vehicle third party insurance premiums. Third Party premium is still a regulated area and approvals from government is required before the increase comes into effect. The premiums and claims are administered by The Indian Motor Third Party Insurance Pool. The need for the increase comes in view of the high claims on this segment. In the year 2008-09 the claims incurred were about Rs.3258 Crores as against a premium collection of only Rs.2822 Crores. The losses of the Third Party Pool are shared by all the general insurance companies in proportion of their overall market share.