Rajasthan Aggregator Rules / Penalty for cab cancellation, passenger insurance... Rajasthan govt takes a big decision on OLA, Uber-Rapido

The Rajasthan government has introduced the Rajasthan Motor Vehicles Aggregator Rules 2025, bringing OLA, Uber, and Rapido under strict regulations. The new norms mandate Rs 5 lakh health insurance for passengers and drivers, Rs 10 lakh term insurance for drivers, panic buttons

The Rajasthan government has taken a significant regulatory step by officially implementing the Rajasthan Motor Vehicles Aggregator Rules 2025, while this move, announced through a gazette notification by the Transport Department, brings major cab aggregators like OLA, Uber, and Rapido, along with other taxi and delivery service vehicles, under a clear and stringent set of rules. The primary objective is to enhance passenger safety, ensure driver welfare, and establish greater accountability within the burgeoning ride-hailing and delivery sectors. This comprehensive framework aims to streamline operations and provide a safer, more reliable experience for both service providers and users across the state.

Mandatory Insurance for Passengers and Drivers

A cornerstone of the new regulations is the mandatory insurance coverage. Under these rules, it's now compulsory for every passenger traveling in a cab to be covered by a health insurance policy of Rs 5 lakh. This provision Importantly boosts passenger safety and provides a crucial financial safety net in case of any unforeseen incidents during transit, while beyond passengers, the rules also prioritize the social security of drivers. Cab companies are now required to provide a Rs 5 lakh health insurance policy for each. Of their drivers, addressing a long-standing demand for better welfare provisions for those operating these services.

Enhanced Safety Features and Driver Welfare

In addition to health insurance, the new rules introduce further measures to ensure the well-being of drivers. A term insurance of Rs 10 lakh is now mandatory for all cab drivers, offering substantial financial security to their families in unfortunate circumstances, while On top of that, passenger safety has been Importantly bolstered with the mandatory installation of panic buttons and Vehicle Location Tracking Devices (VLTD) in all cab vehicles. These features are designed to provide immediate assistance in emergencies and allow for real-time monitoring, thereby enhancing the overall security environment for passengers.

Cancellation Penalties for Accountability

To ensure greater convenience for passengers and establish clear accountability, the new regulations also include a provision for penalties on cab cancellations. Under these rules, a penalty of up to Rs 100 can be imposed for cancelling a cab booking. This measure aims to reduce arbitrary cancellations by drivers and aggregators, thereby improving service reliability and. Reducing inconvenience for passengers who rely on these services for their daily commute or travel needs. It introduces a level of commitment from the service providers, ensuring that bookings are honored more consistently.

Licensing and Swift Implementation

All cab and delivery companies operating within Rajasthan are now mandated to obtain a license from the Transport Department within fifteen days of the rules' implementation, while failure to comply with this licensing requirement will result in strict action against the defaulting companies. The Transport Commissioner, Purushottam Sharma, has been instrumental in the rapid implementation of these rules, directing swift administrative action at the departmental level to bring these regulations into effect within a mere seven days. This expedited process underscores the government's commitment to quickly formalizing and regulating the aggregator sector for the benefit of all stakeholders.