How Hiking Third Party Insurance Premium Will Impact The Trucker Owners | RenewBuy

How Hiking Third Party Insurance Premium Will Impact The Trucker Owners

How Hiking Third Party Insurance Premium Will Impact the Trucker Owners

With every passing day paving way for modern technologies and changing requirements, the freight market has been quite less in demand for the last five years. Truckers transporting goods to the major industrial hubs once have now been narrowed to suburbs only. With such an imbalance already doing the rounds, the sudden notice of premium hikes in third party car insurance has created a massive outrage among the truck owners driving the owners to take down lakhs of trucks altogether. Adding on to this, the bus drivers are also expected to join the strike in order to stand against the unaccepted hike in the truck insurance policy. With the exaggerated price hike in 3rd party insurance, the price of other necessities like groceries is also expected to be on the rise. And the worst part, the hike will not miss escalations in fuel cost. Hence, supported by lakhs of drivers placing their demands and standing against such rampant, unplanned third-party car insurance, the future of the freight is presently facing massive imbalance.

Surge in Diesel Prices

Hikes in truck insurance India are not new but have been frequently announced by the ruling organizations. This not only creates unwanted tension but causes major financial turbulence among the truck owners. One of the major drawbacks of hikes in a truck insurance policy is that it eventually results in price surges in fuel prices. The increased cost of diesel creates a major hole in the pockets of the truck owners and also affects the drivers at large. The trucks which cover interstate distances delivering goods, have to incur a greater loss than the ones covering intrastate transport services. Truckers often have to pay greater fuel prices at other states than the sum paid in their home states. This unplanned expense is usually dealt out of the contract and has to be carried by the owner himself. This is because, as per the contracts, only the fuel used to refill the trucks at the home states are considered. Thus, a huge portion of the profit earned is lost in paying diesel bills in different states.

Consequent Hikes

The truck insurance price hike has a greater number of indirect impacts than direct ones. Since it directly leads to unwanted surges in fuel cost, the price of other necessities also witnesses exponential growth in the market. From groceries to dairy products, the market has a hard time absorbing the price hike, especially coupled with the fact that the production of such necessities is not going to increase in the recent times to make up for the economic insurgency. The third-party car insurance hikes also end up affecting the farmers as a huge setback in the transportation of such goods will be noticed within no time. Due to the lesser availability of goods, the market eventually declares a surge in prices which consequently affects the monthly budget of the people in general.

Expected Premium Hike

As per the truck insurance premium calculator, a minimum of 10% to 20% hike in truck insurance policy is expected to hit the freight market. However, the past records also showcase premium hikes greater than that. Since such hikes are thoroughly uncalled for, these are often welcomed with strikes, protests and disagreement from people at large. Apart from that, there is a consequent surge in payable interstate toll taxes. This creates a huge lag in the toll revenue, and the causes additional surges in manpower cost, eventually leading to financial imbalance of most of the developing states.

The decisions declared by the government are meant to be abided by the country as a whole. However, the third-party car insurance hike not only affects the freight market but also distributes a wave of disagreement among the other markets as well. The price surges in fuel, grocery, toll tax, and other necessities affects the common people at the most. Though the outrage is completely justified, the pleas and demands of the truck owners usually go unheard.

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