After an accident at Juna Wadaj claimed a life on Sunday,the AMTS (Ahmedabad Municipal Transport Service) authorities have decided to discontinue services of 30 private buses from March 3.
These leased buses reportedly had no insurance cover.
Pravin Patel,Chairman,AMTS,told Newsline: When the private buses meet with accidents,the AMTS has to bear the damages. It adds an additional burden of repairing and other expenditure,which we have been bearing at a heavy cost for a long time.
The AMTS had carried out a review of private buses to check their insurance covers.
There were 59 buses that had no insurance proof. They were notified repeatedly to produce insurance proof. Since they didnt respond for a long time and two accidents involving two of these buses happened in quick succession in the last few days,we finally decided to scrap 30 such buses, Patel said.
These buses belong to private operators like Utpal Travels,Jay Ambe Travels,Maruti Travels and Bindra Travels among others.
The private buses have to procure insurance for each bus they give to the AMTS. The licences cover accidents,repairing,risks and the like. They are supposed to renew their licences every year, Patel explained.
The private buses with AMTS had claimed 27 lives and were involved in 551 accidents in 2008.
According to Patel,the private buses have to renew their contracts every five years. After five years,the losses incurred come on the AMTS,as they defer payment to the next term. There are a few who have been giving buses for the last five years but havent taken any insurance cover, he added.
Patel also declared that henceforth,private bus operators without insurance cover will not be allowed to run buses for the AMTS. The ones with old licences have been given an ultimatum to renew them soon.