Supreme Court Questions Low Insurance Coverage For Drivers & Riders Under Motor Vehicle Aggregator Guidelines 2020
The Supreme Court, on Monday, indicated dissatisfaction with respect to the insurance coverage that the Motor Vehicle Aggregator Guidelines 2020 provide for drivers and pillion riders.While hearing a plea challenging Delhi High Court’s order allowing bike-taxi aggregators, Rapido and Uber from operating bike-taxis without aggregator licenses in Delhi till a final policy regarding the same...
The Supreme Court, on Monday, indicated dissatisfaction with respect to the insurance coverage that the Motor Vehicle Aggregator Guidelines 2020 provide for drivers and pillion riders.
While hearing a plea challenging Delhi High Court’s order allowing bike-taxi aggregators, Rapido and Uber from operating bike-taxis without aggregator licenses in Delhi till a final policy regarding the same is notified by the Delhi Government, a Bench comprising Justice Aniruddha Bose and Justice Rajesh Bindal had enquired about the insurance coverage for the driver and the pillion rider.
On the last occasion, Senior Advocate Neeraj Kishan Kaul appearing on behalf of Uber had apprised the Bench that the insurance cover is there for the drivers and that Uber is only an aggregator.
On Monday, the Bench once again asked the Counsels representing the aggregators about the insurance coverage. The Counsel appearing on behalf of Rapido submitted, “It is INR 5 lakhs for both the rider as well as the pillion rider.”
Kaul informed the Bench, “Uber also takes INR 5 lakhs for driver.”
Dissatisfied with the insurance coverage, Justice Bindal said, “That is nothing.”
Kaul submitted, “The Central Government Guidelines 2020 deals in detail about the rights of riders and the person driving.”
Justice Bose indicated that the amount of INR 5 lakh might not be sufficient.
“Mr. (Sanjay) Jain (ASG), limiting it to INR 5 lakh, we have to test it somewhere. It is improper, goes against public interest, prima facie.”
Justice Bindal added, “How can compensation be limited to INR 5 lakh?”
Kaul clarified, “This is what Uber gives.”
Justice Bindal said, “No, this is the Central Government guidelines”. He informed the Senior Counsel that as per the Motor Vehicle Aggregator Guidelines 2020 the Central Government also contemplates insurance coverage of INR 5 lakhs.
The relevant clauses of the 2020 Guidelines reads as under -
Clause 7(2)(a) [Compliance with regard to drivers] - Ensuring a health insurance for each Driver integrated with the Aggregator for an amount not less than Rs. 5 Lakhs with base year 2020-21 and increased by 5% each year.
Clause 7(2)(b) [Compliance with regard to drivers] - Ensuring a term insurance for each Driver integrated with the Aggregator for an amount not less than Rs. 10 lakhs with base year 2020-21 and increase by 5% each Year.
Clause 15(2)(b) [Aggregation of non-transport vehicles by Aggregators] - The vehicle integrated under this Clause 15 shall obtain an insurance of at least Rs. 5 lakhs for the ride-sharers in the vehicle, other than the owner or driver integrated with the Aggregator.
Kaul stated on behalf of Uber that if some enhancement is required to be done to the insurance coverage that can be looked into. However, he emphasised that it is not the primary issue before the Court in the present proceedings. Since no detailed arguments were made in respect to the issue of insurance coverage, the Bench did not make any further observation in this regard.
Also Read - Supreme Court Stays Delhi HC Order Which Allowed Bike-Taxi Operations Of Rapido, Uber In Delhi
[Case Title: Govt of NCT of Delhi And Ors. v. Roppen Transportation Services Pvt. Ltd. SLP(C) No. 12000/2023]