NEW DELHI, March 31: Bogged down by the several cases filed in different High Courts against the increased motor tariff insurance premium, the Tariff Advisory Committee (TAC) has sought the Supreme Court's intervention. In a petition filed late last week, the TAC has asked that all such writ petitions against the price hike be transfered to the Supreme Court and be heard together. These cases strike at the heart of the India's general insurance business as they have challenged the composition of TAC and its powers to decide premia rates. They also want the premia hike to be brought back to original levels.In its writ the TAC has asked that a general direction be given to stay the proceedings in all the cases and that all future writs on this issue be transfered to the Supreme Court. Petitions were been filed by different interest groups against the hike in motor insurance premia effected in April 1997. Cases have been filed in the Calcutta High Court, Chennai High Court and Kerala High Court by automobileassociations, truck operators associations. ``There is a bona fide apprehension...there would be inconsistent judgements passed by several courts,'' the petition by TAC says.The TAC is a statutory body which is empowered to fix, amend or modify premium rates of insurance. Its chairman is the chairman of the General Insurance Company (GIC).
Until 1972, when the insurance industry was nationalised, the TAC had members representing the private companies as well. In its petition TAC argues that its composition and powers cannot be challenged by the transporters as they are in complete accordance with the law. The petition also says economic decisions should not be open to judicial review, if the decision has been arrived at after due analysis and consideration.
The entire issue of motor premia was ignited by TAC's decision to hike rates in April 1997. The rate hikes were between 215 per cent for two-wheelers and 799 per cent for private carriers. In protest, the truckers went on a country wide strike whichcrippled movement of goods for about a fortnight.
The Government was then forced to review the rates and set up a sub-committee under TAC to study the issue.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
