Booking A Cab In UP? New Policy Brings Big Relief For Users With Fare Cap, Fines & Insurance Co

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Key points generated by AI, verified by newsroom

• Uttar Pradesh policy regulates app-based taxi services, addressing issues.
• New policy caps surge fares, penalizes driver/passenger cancellations.
• Aggregators provide driver insurance; strict zero-tolerance safety enforced.

Cab commuters in Uttar Pradesh could soon benefit from a new aggregator policy aimed at regulating app-based taxi services.

The state government is set to implement the policy, which seeks to tighten rules for cab aggregators and address issues such as arbitrary fare hikes, booking cancellations and passenger safety.

Cap On Surge Pricing

Under the new policy, cab aggregators will no longer be able to impose unrestricted surge pricing during periods of high demand, such as heavy rainfall or peak office hours.

The Transport Department is introducing a fixed fare limit, under which companies will not be allowed to charge more than 50 per cent above the base fare, even during peak hours.

The move is expected to provide relief to passengers who often face steep fare increases during busy periods.

Penalties For Booking Cancellations

The policy also introduces new rules governing ride cancellations.

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If a driver accepts a booking and later cancels the ride without a valid reason, the driver will be required to pay the full fare for that trip.

Drivers who fail to reach the pickup location on time after accepting a booking will face a minimum penalty of ₹100.

Passengers will also be subject to penalties. A passenger who cancels a booked ride will be fined ₹100.

Insurance Cover For Drivers

The policy also includes provisions for the welfare of cab drivers.

Cab aggregators will be required to provide social security benefits, including a minimum health insurance cover of ₹5 lakh and term insurance cover of ₹10 lakh for all drivers.

Zero-Tolerance Policy On Passenger Safety

The Uttar Pradesh government has also proposed stricter safety measures under the new policy.

A zero-tolerance policy will be enforced against drivers found consuming alcohol while on duty, and strict legal action will be taken against those found violating the rule.

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