Transporters demand reduction in insurance premiums

LUDHIANA: Citing drop in business due to recession and rising cost of expenses , city transporters are demanding reduction in insurance premiums of commercial vehicles which have gone up by upto 20 percent as compared to last year. According to businessmen, transport industry with the reduction in insurance premiums they will be able to reduce the freight and generate more business.

According to Charan Singh Lohara, former president of All India Motor Transport Congress (AIMTC), “Day by day expenses of the transporters are increasing , be it salaries of drivers and office staff, fuel cost, toll everything is on the rise. But the hike in insurance premium on commercial vehicles which have gone costlier by upto 20 percent as compared to last year have proved to be the spoilsport. Despite these facts , during past one year there has been very minor increase in freight rates and we have been absorbing huge losses. But ever since last three months due to recession in all sorts of businesses specially manufacturing our businesses are taking huge hit as huge drop is being witnessed in transport business”

Lohara also added, “We see no end to the recession and only option which is left for businessmen into transport business is reduction in the freights but it is not possible until our expenses come down. We urge Union government to wake up to our plight and immediately order the reduction in insurance premiums of commercial vehicles which can prove to be a game-changer in these turbulent times”

According to Sudarshan Verma, a leading transporter of the city, “First came demonetisation, then GST and now unjustified hike in the insurance premiums which have hit us the most. Until the premiums come done the plight of transporters will remain the same as insurance cost is the major constituent of our business expenses and even a slightest cut in the premiums which are now up by 20 percent will bring down our cost of business considerably".

Source: The Times of India