The Union government has proposed that drivers onboarded by cab aggregator platforms such as Ola, Uber, and others undergo a psychological analysis to determine whether they are fit to be onboarded. These proposals are part of the Motor Vehicles Aggregator Guidelines (MVAG), 2025, notified on Tuesday.
The psychological test, among many other proposals, has been introduced by the centre aimed at regulating fares, increasing passenger safety, reducing pollution and safeguarding the interests of drivers from the platforms. To be sure, most of the clauses of these guidelines will only come into effect if states choose to implement them. Commenting on this, Piyush Tewari, Founder and CEO, SaveLIFE Foundation, said, "A single, unspecified psychological evaluation cannot be relied upon to ensure the safety of passengers and other road users. There is an urgent need for comprehensive assessments and road safety training for drivers. Additionally, fixed working hours and integration of all cabs into a unified, GPS-enabled public transport tracking system are essential steps toward enhancing accountability and ensuring safer urban mobility."
To protect consumers and encourage competition, the ministry of road transport and highways has proposed that platforms can now charge up to a maximum of twice the base fare during peak hours and a minimum of 50% of the base fare during lean hours.
{{/usCountry}}To protect consumers and encourage competition, the ministry of road transport and highways has proposed that platforms can now charge up to a maximum of twice the base fare during peak hours and a minimum of 50% of the base fare during lean hours.
{{/usCountry}}The centre’s new policy mandates that the driver must receive at least 80% of the applicable fare and ensure drivers have health and term insurance of at least ₹5 lakh and ₹10 lakh, respectively, and a minimum of ₹5 lakh insurance cover for each passenger. In the interest for safety, driver’s license and vehicle permit must be displayed inside the vehicle and the app must display a clear, high-resolution photo of the driver, the policy document states. Ashim Sanyal, COO, Consumer Voice & Member, Road Safety Network, said the inclusion of mandatory insurance coverage for app-based cab passengers in the Motor Vehicle Aggregator Guidelines 2025 is a long-overdue and welcome step. It brings app-based mobility services in line with broader public safety norms and offers much-needed financial protection to consumers in the event of any casualties. "We hope that state governments swiftly adopt and implement this clause to ensure safer urban commutes for millions of Indians."
Further to reduce congestion, lower pollution, and improve affordable last-mile connectivity, the centre has allowed the use of private motorbikes as cabs. This incidentally comes after the Karnataka high court earlier in June had banned the use of bike taxis.
The policy also proposes the delisting of vehicles older than eight years from these platforms.