Source: DH
Context: The Ministry of Road Transport and Highways notified the Motor Vehicle Aggregator Guidelines (MVAG), 2025, revising the 2020 norms to reflect new mobility trends like bike taxis, EVs, and app-based autorickshaws.
About Motor Vehicle Aggregator Guidelines (MVAG), 2025:
- What It Is?
- MVAG is a regulatory framework under the Motor Vehicles Act, 1988 that governs how app-based ride-hailing platforms like Ola, Uber, and Rapido operate in India.
- Issuing Ministry: Ministry of Road Transport and Highways, Government of India
- Key Features of MVAG 2025:
- Driver Welfare and Earnings:
-
- Drivers must receive at least 80% of the fare if using their own vehicle.
- If using aggregator-owned vehicles, they must get minimum 60% share.
- Mandatory health insurance of ₹5 lakh and term insurance of ₹10 lakh per driver.
- Quarterly training for low-rated drivers (bottom 5 percentile).
- Passenger Protection Measures:
-
- ₹5 lakh mandatory travel insurance per passenger.
- Aggregators must resolve complaints within 3 days and inform passengers of outcomes.
- Fare must be charged only from pick-up to drop-off point.
- Regulated Fare Structure:
-
- State governments to fix base fare per vehicle category.
- Aggregators can charge 50% less than base fare or up to twice as dynamic pricing cap.
- This introduces price predictability and caps surge pricing.
- Penalties for Ride Cancellations:
-
- 10% penalty on either driver or rider for unjustified cancellations (capped at ₹100).
- Valid reasons for cancellations must be listed on apps/websites for transparency.
- Bike-Taxi Recognition:
-
- For the first time, non-transport motorcycles allowed for ride-hailing, subject to state approval.
- Provides legal clarity for platforms like Rapido in regulatory grey zones.
- EV Promotion & Accessibility:
-
- States can now mandate annual EV adoption targets for aggregators.
- Inclusion of Divyangjan-accessible vehicles made compulsory to enhance inclusivity.
- Enhanced Driver Screening:
-
- Drivers must undergo police verification, medical tests, and psychological assessments before onboarding.
- Aggregators must provide induction training and annual refresher courses.
- Grievance Redressal and Licensing Norms:
-
- Aggregators must appoint a grievance officer, display contact details on app/website.
- A centralised portal will manage licences, renewals, deposits — easing compliance.
- Strict Compliance and Penalties:
-
- Violations may attract fines from ₹1 lakh to ₹1 crore.
- Repeat offenders face license suspension for 3 months, and eventual cancellation.
