Insurance Cess a part of 19th January Fare Hike

Insurance Cess a part of 19th January Fare Hike

A senior official of the State Transport Department of Tamilnadu said that the amount of Re 1 which had to be levied as an additional amount as insurance cess has already been done from January 20th as this was incorporated in the original fare hike and has no connection with the rollback.

The State Government announced a ticket hike on 19th January, which was a proposal for the creation of an accident cover fund so that compensation can be provided for bus accidents and to pay the toll fees. The additional amount has been included in the new fare which was levied from 20th January.

It has been proposed that an additional amount of Re 1 will be levied in urban areas and the proceeds from this amount will be used for accident insurance, payment of toll fees and accident preventive measures.

As the SCTs have been unable to pay any compensation to victims of accidents, the fund will apply to all 8 of them. The STCs on a monthly basic pay Rs. 12 crores as toll fees.