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An analysis of Section 93 of the Motor Vehicle Amendment Act, 2019

September 25, 2021
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This article has been written by Trisha Singh.

Abstract 

This article is an analysis of cab as an aggregator or intermediary under Section 93 of Motor Vehicle Act 2019 along with The Motor Vehicle Aggregators Guidelines, 2020. This article states that the cab like Ola and Uber are intermediary by 2019th motor vehicle amendment act and the reason behind the amendment to include cab as an aggregator is to curb the risk of passenger, driver and pedestrians as the drivers before this amendment uses the handheld device to navigate to the destination. Further, the article discusses the Motor Vehicle Aggregators Guidelines, 2020 in brief and highlights the biased areas of it which demand reformation of the guidelines for cab aggregators. 

Introduction

There have been many amendments in motor vehicle act, but the Motor Vehicles Amendment Act 2019 amended Section 93 of the Motor Vehicle Act 1988 and brought the provision for cab aggregators such as Ola and Uber under it as a digital intermediary, which is defined under Section 93 of the Motor Vehicle Amendment Act 2019. So, Motor Vehicle Amendment Act, 2019 adds aggregators as a third category, who has to abide by the rules of the Information Technology Act, 2000 after canvassers and agents. These aggregators would include bike taxis also, which has some disputes with state governments. The main idea behind including cab aggregators under this act is to lower the risk w.r.t to the safety of the passengers, pedestrians as the cab drivers use handheld devices to navigate the destination and get customers online.

Definition of term Aggregator and Rider 

 An aggregator is a digital intermediary or market-place for a passenger to connect with a driver for the purpose of transportation therefore, Ola and Uber are aggregators. It uses an app to provide its services which are accessed through a communication device.

A rider is a person who avails services through the aggregator app for reaching the destination, by a driver who is integrated with the aggregator.

The reason behind including Cab as an aggregator under Section 93 of Motor Vehicle Amendment Act, 2019

The road transportation system in India has been advanced to much extent with the emergence of technology-aided apps like Uber and Ola whose services have made the means of road transportation very easy. The drivers of these cab services use hands to navigate the location of the destination constantly due to which the safety of the passenger, pedestrian comes at a risk. As a result of which the government of India brought a new motor vehicle amendment act 2019, which provides penal provision for using handheld mobile to follow the navigator and will be fined between 25,000 and 1 lakh for violation of rules or for breaking any traffic regulations.

The Motor Vehicle Amendment Act, 2019 amended Section 93 of the Motor Vehicle Act,1988 stated that the agent or canvasser must obtain a license from such authority as may be prescribed by the state government and no person shall engage himself as an agent in the business of distributing and collecting goods carried by carriages and as a canvasser in the sale of tickets for travel by public transportation facilities or in soliciting customer without the license. Therefore the 2019th amendment included cab as aggregators to curb the risk of road safety, road accidents and corruption in India’s road transport system. 

This amendment acknowledges that innovation and technology play a vital role in transforming India’s mobility landscape and the cabs were included as an aggregator that is a digital intermediary under Section 93 of the Motor Vehicle Amendment Act 2019. Since, transport is a matter of state subject, the bill allows these cab aggregators to obtain license from the state governments and shall comply with the provisions of Information Technology Act, 2000. 

Why recognition of cab as aggregators by amendment of Motor Vehicle Act 2019 is a great move?

The Motor Vehicle Aggregators Guidelines, 2020

The ministry has issued the guidelines to regulate the cab aggregator market which has been issued in pursuance of Section 93 of the Motor Vehicle Amendment Act, 1988 to which the state governments may allude while issuing the license to any cab aggregator.

Key guidelines 

Comments 

Conclusion 

The idea of including a cab as an intermediary under the Motor Vehicle Act, 2019 is noble to the extent that it enhances the safety protocols of the passengers, pedestrians and drivers. The motor Vehicle Aggregator Guidelines 2020 is an initiative to control pollution, congestion. But besides these, there are many loopholes in the guidelines that state that the government is trying to regulate the business in its own fashion which makes the guidelines very rigid to analyse. The centre should reform guidelines with less rigidity so that there is no useless filtering process of the driver for the license, the surge fee which is capped at 1.5 times the base fare which dampens the earnings for both aggregators and drivers, the commission charged by the cab aggregators earlier was 25 % which now is capped to 20% hampering the business must be resolved by reforming the guidelines. 


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