Cabbies get short respite over long-term insurance plan
Though a temporary relief, the decision was welcomed by cab owners and operatorsUpdated: Apr 11, 2019 06:24 IST
Regular and app-based taxis that fall under the transport category can be registered without long-term third-party insurance.
The Maharashtra Motor Vehicle Department (MMVD) on Tuesday instructed all regional transport offices (RTO) not to insist that cab owners purchase a three-or five-year-long insurance plan while registering vehicles in the transport category,as insurance firms are yet to introduce such long-term policies.
“It is a temporary measure since insurance companies have not come up with such a product for transport vehicles yet. The relief is only till the companies bring such a product into the market,” said Shekhar Channe, state transport commissioner.
Though a temporary relief, the decision was welcomed by cab owners and operators.
“Buying a long-term insurance plan will increase the overall cost of the vehicle, thus making it difficult for cab owners to pay instalments for the loan they have taken to buy the vehicle,” said Prem Singh, leader of the Mumbai Taxi Association.