Rajasthan Introduces Cab Cancellation Penalty Rules for 2026: Avoid Losing ₹100

Jaipur, Rajasthan: The Rajasthan government has introduced new rules for cab passengers under the Rajasthan Motor Vehicle Aggregator Rules 2025, aimed at regulating cab cancellations. Starting this New Year, any cancellation without a valid reason will attract a penalty of 10% of the total fare or up to ₹100, whichever is lower. The rule applies equally to both passengers and drivers.

Penalty Details for Drivers and Passengers
If a cab driver cancels a ride after accepting it without a legitimate reason, a penalty of 10% of the total fare or ₹100 (whichever is less) may be deducted and credited directly to the passenger’s account. Similarly, if a passenger cancels a ride without valid reason, the same penalty will be applicable.

Why the Government Took This Step
The government has cited long-standing complaints from both passengers and drivers as the reason for the rule. Repeated cancellations not only waste drivers’ time and fuel but also directly impact their earnings. In many instances, drivers face financial loss after covering long distances only to have the ride canceled. Passengers, too, experience inconvenience due to sudden ride cancellations.

Mandatory Safety and Insurance Measures
In addition to the cancellation penalty, the new rules make it mandatory for cab passengers to have a health insurance cover of ₹5 lakh. All cabs must now have a panic button and a vehicle location tracking device installed to ensure safety. Cab companies are also required to provide ₹5 lakh health insurance for each driver.

Furthermore, all cab and delivery companies must obtain a license from the Transport Department within 15 days. Gig workers operating without a license will face strict action.

These steps aim to create a safer and more reliable cab service ecosystem in Rajasthan while protecting the interests of both drivers and passengers.

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