Keralam MVD Issues New Rules for Online Taxi Services

Thiruvananthapuram: The Motor Vehicles Department has introduced new regulations for online taxi services in Keralam. Under the new rules, companies such as Uber, Ola and Rapido can face fines of up to Rs 1 crore for violations.

Under the regulations, anyone can start an online taxi service by paying an application fee of Rs 1 lakh. The licence fee is Rs 5 lakh, and the licence will remain valid for five years. It can be renewed on payment of Rs 25,000.

Companies are required to provide drivers with health insurance coverage of at least Rs 5 lakh and term insurance coverage of Rs 10 lakh. The new rules also stipulate that drivers must receive 90 per cent of the fares earned through the taxi services.

For dynamic pricing, companies can charge fares that are either 50 per cent below or up to twice the government-prescribed rates.

Security deposits of Rs 10 lakh for two-wheelers and three-wheelers, Rs 30 lakh for light motor vehicles (LMVs) and Rs 50 lakh for buses are also mandatory.

The regulations further require all vehicles to be equipped with location-tracking systems and panic buttons that passengers can use in emergencies.