HIKE IN THIRD-PARTY INSURANCE FOR TRANSPORTERS TO BE HALVED

The Government has decided to roll back a hike in third-party insurance charges for transporters. In a move that will upset all pricing assumptions made by insurers post free pricing in January 1, the Government has decided to cut the hike in liability insurance premium for transporters to 70% from the 150% notified earlier. The third party insurance provides compensation to accident victims and is a mandatory cover. The cover for the vehicle itself is called ‘own damage’ cover.