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HC seeks details on warranty,insurance in taxi phase-out issue

The Bombay High Court on Tuesday directed the government to seek clarification from vehicle manufacturers as well as insurance companies regarding concessions that may be granted to taxi owners wanting to purchase new taxis.

Written by Express News Service | Mumbai |
February 4, 2009 3:16:35 am

The Bombay High Court on Tuesday directed the government to seek clarification from vehicle manufacturers as well as insurance companies regarding concessions that may be granted to taxi owners wanting to purchase new taxis.

A division bench of Chief Justice Swatanter Kumar and Justice D Y Chandrachud was hearing a petition filed by taxi owners challenging a resolution passed by the government in August last year to phase out taxis which are more than 25 years old.

The case was adjourned till further hearing on Wednesday. The court had earlier appointed a committee and sought recommendations as to what relief may be granted to taxi owners/drivers who would be affected by the phase-out.

Some 7,051 taxis in Mumbai are over 25 years old; the state government told the court on Tuesday.

As per the committee,vehicle manufacturers were offering discounts upto Rs 40,000 on price of new vehicles. The court on Tuesday asked the state to clarify the details from companies like TATA and Maruti by Friday.

But petitioners’ lawyers said that they expected some relief regarding warranty for CNG-fitted taxis,and insurance premium.

According to taxi unions,vehicle manufacturers do not offer warranty if a petrol-run vehicle is later fitted with CNG. It was further pointed out that the insurance premium for petrol-engine taxi is just 0.5 per cent,while for CNG taxis it is 4 per cent.

Bombay Environmental Action Group,a pro-environment NGO pressing for the phase- out of old taxis,contended that Tata Motors was offering CNG-fitted taxis with warranty.

Regarding insurance issue,government pleader D A Nalavade said that Insurance Regulatory and Development Authority may decide on that.

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