The ongoing strike by the truck owners is set to further intensify, resulting in rise in prices of essential items, following failure of the talks with the insurance regulator at Hyderabad on Monday, a motor transport union official.
"There was no commitment on the part of the Insurance Regulatory and Development Authority of India (IRDAI) to reduce the hike in third party premium rates for trucks," All India Motor Transport Congress' Vice President, South Zone, P.V. Subramani, said.
"The IRDAI said they would form a committee to consider reduction. We felt this would consume lot of time and hence decided to intensify our strike," he added.
Subramani is also the Chairman and Managing Director of Cargo Wings Logistics Ltd.
The third party premium for automobiles is decided by the IRDAI, while all other premium rates are decided by the insurers — private and government-owned.
He said from Tuesday onwards, even the trucks that were now plying to south India, would stop midway.
According to him, around 650,000 trucks are off the roads in the southern states and the business loss per day is around Rs.4 crore.