The insurance industry, which has been lobbying for an affordable auto insurance option for months, has been sounding the alarm for months about the rising cost of auto insurance, even as the government has promised to increase subsidies to the sector.
Auto insurance is the primary revenue source for the government, which currently provides a maximum subsidy of Rs 500 for an annual premium of Rs 2,000.
The current average subsidy is Rs 6,400 for a single policy.
While the government’s flagship plan to provide a subsidy of 1% of a person’s gross income for premium coverage has been rolled out in 2017, the government is yet to provide an exact figure.
The insurance companies say it is unclear if the government will continue with the scheme after this year’s budget.
The industry has been demanding a subsidy hike for at least a year now, with the insurance companies also urging the government to increase the subsidy.
The insurance companies have been pressuring the government for a subsidy increase, especially since there is a significant gap between the prices that the government offers and the cost of covering people.
They have also pushed for a change in the policy to allow people to pay their premiums at a lower rate.
But the government says it will not introduce a subsidy, which is the reason it has not announced a subsidy figure.
The auto insurance industry has consistently argued that the auto insurance market has not changed much since the last election, when the government promised to make auto insurance affordable.
The industry has also said that if subsidies are increased, the industry will go back to its earlier position.
In a letter to the government in August 2017, industry experts said that the insurance sector would not accept a subsidy that was not increased.
The letter said that as a result, auto insurance companies would be forced to increase their premiums, potentially triggering a surge in the cost for consumers.
In this context, the auto industry is asking the government not to hike subsidies.