HC dismisses pleas against third party insurance

KOCHI : The Kerala High Court on Thursday dismissed a batch of petitions challenging the notification issued by the Insurance Regulatory and Development Authority (IRDA), enhancing the premium for third party insurance for motor vehicles.The petitions were filed by organisations representing operators of public stage carriages, taxi, car and lorries. The petitioners submitted that the IRDA had no power to enhance the premium."The power to enhance the premium is vested with Traffic Advisory Committee (TAC). The IRDA can only ratify it," the petitioners submitted.The IRDA submitted that huge loss is incurred to motor insurance segment. A minimum of 83 percent of increase is necessary to run the business on 'no loss, no profit basis', the IRDA submitted.The premium for third party insurance was hiked by 65 to 70 percent with effect from April 25.Passing the order, Justice P R Ramachandra Menon observed that there was no merit on the petitions.