Motor Vehicle Aggregator Guidelines (MVAG), 2025
Kartavya Desk Staff
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.
• 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).
• 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.
• ₹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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• Violations may attract fines from ₹1 lakh to ₹1 crore.
• Repeat offenders face license suspension for 3 months, and eventual cancellation.