Regulatory Framework for Cab Operations in India
Regulatory Framework for Cab Operations in India. In India, the operation of cabs is regulated by a combination of central laws, state regulations, and local transport rules. A few important laws and regulations for cabs in India are:
1. Motor Vehicles Act, 1988
– The main law that regulates all motor vehicles, including taxis.
– Requires permits, licenses, and registration for cabs.
– Establishes penalties for offenses such as overcharging, dangerous driving, and unauthorized driving.
– Altered by the Motor Vehicles (Amendment) Act, 2019, which raised fines and added new safety standards.
2. Aggregator Guidelines, 2020
Issued under the Motor Vehicles Act, 1988, these guidelines govern app-based taxi aggregators such as Ola and Uber:
– Aggregators need to obtain a license from state transport authorities.
– Fare regulation: Covers dynamic pricing limits (capping surge at 1.5x and discount at 50%).
– Driver welfare: Insurance and a welfare fund must be provided by aggregators.
– Safety measures: GPS tracking and emergency response features as must-haves.
3. State-Specific Taxi Rules
Every state has its own transport laws and taxi permit regulations. Examples:
– Maharashtra City Taxi Rules, 2017: Mandates licences for aggregator cabs, uniform fare mechanism, and safety features.
– Karnataka On-Demand Transportation Technology Aggregators Rules, 2016: Regulates taxi services through apps.
– Delhi Radio Taxi Scheme, 2006: Regulates fare mechanisms and operating conditions for Delhi cabs.
4. Contract Carriage & Stage Carriage Permits
– Cabs are run on contract carriage permits, providing point-to-point transportation.
– As compared to stage carriages (buses), cabs are unable to pick up additional passengers during travel.
– State governments give city taxi permits (individual to ride-hailing operations).
5. Pricing & Fare Regime
– The majority of states provide fixed fare policies for both taxis and app-based cabs.
– Black-and-yellow cabs operate metered fares.
– App-based cabs have permission to charge dynamic prices with restrictions.
6. Safety & Security Laws
– Mandatory GPS, panic buttons, and CCTV cameras in most states.
– Cab aggregators have to do driver background verification.
– Female passenger safety laws, such as enabling them to reject shared rides during nights.
7. Penalties & Consumer Rights
– The Consumer Protection Act, 2019 is also applicable to cabs for cases of overcharging, poor service, or misconduct.
– Traffic fines: Offences such as over-speeding, refusal to ply, or driving without a license incur fines under the Motor Vehicles Act.
Thus, these are regulatory Framework for Cab Operations in India.
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