An effort by the Union government earlier this year aimed to clarify the legal standing of bike taxis. An advisory notification stated that motorcycles fall under the definition of “contract carriage” according to Section 2(7) of the Motor Vehicles (MV) Act. It emphasised that vehicles with fewer than four wheels and an engine capacity over 25cc also qualify as motor vehicles, thereby categorising motorcycles within the act. However, this did not resolve the confusion, prompting the government to pursue further amendments.
Proposed Amendments to the Motor Vehicles Act
The Ministry of Road Transport and Highways (MoRTH) has proposed amendments to the MV Act that formally include “motorcycle” in the definition of a “contract carriage.” This move is now open for public comments. The amendments aim to provide the central government with the authority to designate any vehicle as a contract carriage, ensuring flexibility for future developments in the transportation sector without requiring constant amendments to the act.
Impact on the Transportation Industry
Should motorcycles be officially recognized as contract carriages, it would significantly alter the regulatory landscape. New rules would need to be established concerning registration, insurance, driver training, and penalties for traffic violations, according to industry experts. This shift could lead to more structured governance in the bike taxi segment.
Changes to Vehicle Categories
In addition to the motorcycle provisions, the amendments propose removing the separate category of maxi cabs from contract carriers. Instead, they suggest creating two categories of light motor vehicles:
Category 1: Vehicles weighing less than 3,500 kg.
Category 2: Vehicles weighing between 3,500 kg and 7,000 kg.
Maxi Cabs, which can transport more than six but fewer than twelve passengers (excluding drivers), will now be classified as light motor vehicles.
Inclusion of Electric Vehicles and Other Changes
The proposed amendments will also encompass electric vehicles, create a new category for three-wheeled motor vehicles, and revise the rules governing driver’s licences. The deadline for public comments on these proposed changes is set for October 15.
