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Safety priority in new ride-hailing regulation
The government will require all online ride-hailing operators to provide life insurance for both driver and passengers, limit the size of their fleets and apply minimum and maximum fares in its upcoming revised regulation.
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Showing a protest: Thousands of conventional taxi drivers stage a rally against ride-hailing services in front of the Merdeka Palace in Jakarta on March 14, 2016. (The Jakarta Post/Wienda Parwitasari)
The government will require all online ride-hailing operators to provide life insurance for both driver and passengers, limit the size of their fleets and apply minimum and maximum fares in its upcoming revised regulation.
Some of the requirements, such as the fleet and the fare restrictions, were annulled by the Supreme Court in August. However, the government has insisted that such stipulations are necessary to create a level playing field for conventional taxis and to ensure safety.
“The government certainly wants the public to avail of the best service, which provides comfort with affordable prices and safety,” Transportation Minister Budi Karya Sumadi said on Friday.
The revised regulation, said Budi, would take effect on Nov. 1.
Under the draft revision, legal entities, such as cooperatives, that provide application providers with fleets are required to pay insurance premiums as stipulated in the Traffic and Land Transportation Law, which requires insurance for all public transportation modes.
Budi added that the insurance was also a way for the government to protect the online drivers.
“The required insurance will protect them [the drivers]. Currently there is no such protection,” he said.
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