India’s Motor Vehicles Act for Shared Mobility Enterprises
- Blog|Indian Acts|
- 3 Min Read
- By Taxmann
- Last Updated on 28 June, 2021
Motor Vehicle Act, 1988:
Let’s review the applicability of regulatory framework that governs the motor vehicles for on-demand taxi and shared mobility in India.
Motor Vehicles (Amendment) Bill 2016 gives greater independence to state government to formulate its own policies to take care of congestion and increase last mile connectivity and had better use the transport assets. The new on-demand taxis have various implications on road safety and related accountability. State radio taxi schemes revolved around the concept of ownership and attachment of these vehicles with one operator of company however aggregators are like agents who do not own the vehicle or employ drivers, they just connect a commuter to the driver and are defined under Section 93 of The Motor Vehicle Act.
Key liabilities to be considered for legalizing any transport business:
• Passenger Safety –
• Business Compliance –
• Driver Behavior –
• Vehicle norms –
This modern framework will enable states and Central governments to be par with global standards in transport policy and better cater to changing demands of passengers in India.
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