Asia Press Agency

Tag: Motor Vehicles Act

  • Financial Services Secy Discusses Key Issues With Companies

    Financial Services Secy Discusses Key Issues With Companies

    Financial Services Secretary, Vivek Joshi, met with leaders and CEOs of private sector general insurance companies in a discussion that covered several critical issues affecting the general insurance sector. The meeting, which included representatives from the General Insurance Council, addressed the following key concerns:

     

    • GST Input Tax Credit Violations: The insurance industry is currently facing penalties imposed by tax authorities for Goods and Services Tax (GST) input tax credit violations. The meeting aimed to address these concerns and find potential solutions. Notably, the finance ministry has so far refrained from intervening in this matter.

     

    • Enhancing Public Awareness: The participants discussed initiatives to raise public awareness about insurance through continuous engagement with individual states. This effort is designed to increase insurance penetration and coverage among the public.

     

    • Streamlining Distribution Channels: The need to streamline distribution channels, particularly in expanding the agency channel within the general insurance industry, was a key point of discussion. This expansion aims to further increase insurance penetration.

     

    • Compliance with Motor Vehicles Act: The meeting highlighted the need for a more robust and coordinated approach between states and the Ministry of Road Transport and Highways to ensure compliance with the Motor Vehicles Act. This will involve enhancing collaboration to improve compliance and enforce regulations in the transportation sector.

     

    • Cashless Facilities and Standardized Treatment Costs: Collaborative efforts with the Ministry of Health were discussed to enhance cashless facilities and standardize treatment costs. This move aims to foster growth within the health insurance sector.

     

    • Property/Parametric Covers: Insurance companies were encouraged to promote the adoption of property and parametric covers. These are essential tools to mitigate financial losses caused by natural catastrophes and enhance insurance coverage, especially for the MSME sector.

     

    • Fraud Prevention: Addressing the issue of fraud prevention, participants recognized the necessity of linking insurance frauds to the CIBIL score. This approach enhances security and accountability within the industry.

     

    The meeting concluded with an agreement to hold regular meetings with representatives from both the private and public sectors of the insurance industry. These meetings will provide a platform for continuous collaboration to contribute to the growth and development of the insurance sector.

     

    This proactive engagement with insurance companies and stakeholders demonstrates the government’s commitment to addressing issues and fostering a robust and responsive insurance sector that serves the public’s interests. It also highlights the government’s efforts to support the growth and development of the insurance industry in India.

  • Ministry Urges States to Cease Additional Levies

    Ministry Urges States to Cease Additional Levies

    The Ministry of Road Transport and Highways (MoRTH) has issued a directive to states and union territories, urging them to discontinue the practice of imposing supplementary charges, such as passenger tax, checkpost tax, and border tax, on tourist vehicles. In a communication addressed to principal secretaries, transport secretaries, and transport commissioners of states and UTs, the MoRTH underscored that vehicles holding All India tourist permits are already subject to a mechanism where permit fees are shared with the respective states. Thus, any imposition of additional charges is deemed unjustifiable and counterproductive as it hampers the seamless movement of tourist traffic.

     

    While the oversight and regulation of transport services fall within the jurisdiction of state governments, who possess the authority to formulate rules and regulations pertaining to the sector, the central government holds power under the Motor Vehicles Act, 1988 to enact rules that promote tourism. This includes the issuance of permits to tourist vehicles that are valid throughout the entirety of India. The majority of tourist vehicles operating on inter-state routes operate under the framework of All India permits.

     

    MoRTH articulated its position by stating, “The All-lndia Tourist Vehicles (Permit) Rules, 2023 were made with the objective of seamless and hassle-free movement of tourist vehicles across the country on the strength of permit issued after making the payment of fee prescribed… It is pertinent to mention here that the permit fee collected under Rule 3 is disbursed among the States and UTs in the following month,” in a letter directed to the concerned authorities.

     

    The Ministry had formally introduced the All-India Tourist Vehicles (Permit) Rules, 2023 on April 18, with their provisions becoming effective from May. However, due to a lack of proper dissemination of information regarding the changes in rules, certain state governments continued to impose additional permit fees.

     

    By sending out this directive, MoRTH aims to ensure uniform adherence to the new rules and prevent any ambiguity or misinterpretation regarding the imposition of charges on tourist vehicles. This initiative is aligned with the objective of streamlining and facilitating the movement of tourist vehicles across state boundaries, promoting ease of travel for tourists and maintaining consistency in regulatory practices.