Paid Passenger Transport – Explanation

Paid Passenger Transport is the sharing economy that allows individuals to earn extra income by offering certain services — for example, by becoming a driver using platforms like Uber or Eva. Before undertaking such activities. it is best to check with your insurer to provide you with adequate protection. Here’s why.

In this article, we will discuss the place of supply for transportation services along with numerous examples.

These most common five modes of transport are railways, roadways, airways, waterways and pipelines. Following is a brief account of each mode with reference to Indian conditions with relative merits and demerits.

Public Transport Platforms and Car Insurance

Since 2019, the Act respecting remunerated passenger transportation by automobile has required companies operating public transit platforms to take out automobile liability insurance. This must be accompanied by endorsement FAQ No. 48, which provides certain clarifications and modifications to the coverage.

In short: if a driver registered with one of these platforms is involved in an accident during his work, the compensation is paid by the insurer of the operating company. However, the coverage that applies is the same as that which the driver has chosen on his personal auto insurance policy. If this protection proves to be insufficient, the driver will have to bear the costs of the claim himself.

Declare your Activities to Paid Passenger Transport

Your car insurance policy is established according to certain criteria. Such as your annual mileage, your region, your driving experience and the use you make of your vehicle in the context of your private life.

If you choose to make it a means of transporting people. The risk of an accident could increase, in particular, because of the number of kilometres travelled or because you will be driving more often in the evening or at night.

For this reason, it is important to declare to your insurer your intention to undertake such commercial activities with your personal vehicle. Your coverage can then adjust to adequately protect you in the event of a claim.

Paid Transport and claims File

What happens if you involve in a fender bender or collision while transporting people for compensation on behalf of a public transport platform? The company’s insurer pays you an indemnity based on the coverage of your personal auto insurance policy. Then, he requires to register this event in your file in the Central Automobile Claims File (FCSA). A database that lists road accidents that occur in Quebec over the past six years.

Remember that this database uses by insurers to establish your premium. Includes all claims in which you involve, whether in the context of your personal or professional life.Paid Passenger Transport – Definition, Activities, Files, And More					Paid Passenger Transport – Definition, Activities, Files, And More

New Methods of Paying for Public Transport

Who hasn’t been caught running to catch a train? Bus or ferry, worry about not getting a seat or missing their ride altogether because they need to stand in line to buy a ticket?  Wouldn’t life be easier if you could simply get on board and pay when the conductor passes?

There’s no need to wait for George Jetson and the future because mass transit agencies are exploring new methods of payment TODAY. Providing commuters more convenient, reliable and fast options. These include methods as simple as more automated kiosks to new ‘tap-to-pay’ tools for on-board payments and more.  One agency that is taking steps toward this is the Metropolitan Transportation Authority (MTA) in New York.

Airways also Paid passenger Transport

We cannot boast of airways in India as we do in the case of railways and roadways because and underutilised. It acts as a feeder or supporting transport means. The domestic capacity available is 115 lakh ton kilometres but utilised only to the extent of 12 lakh ton kilometres in 1990.

International capacity corresponds to 218 lakh ton-kilometres of which 175 lakh ton-kilo meters use. India has 4 international airports. 92 aerodromes with 50 intermediate and 40 minor aerodromes.

Announced to Using from Paid passenger Transport

Last week, the MTA announced it is testing a program on select Long Island Rail Road lines that allows passengers more payment options when buying a ticket after boarding the train. The LIRR will begin a pilot that will allow passengers to purchase tickets with their credit cards on the train by equipping their conductors with Ticket Issuance Machines (TIMs).

More than one million tickets using cash onboard the LIRR in 2010.  With this program, neither conductors nor passengers need to worry about the inconvenience. Hassle or security concerns tied to carrying a certain amount of cash or receiving large amounts of change due to the increased convenience of electronic payments.

Transportation of Passengers

If the right to the passage is given for future use and the starting point. i.e., point of embarkation not known at the time of issue of the right to passage. The place of supply of such service will determine according to the general provisions.

Example- Vimana Air to Chennai stopping at Kolkata & Bangalore. Ms Anita boards the flight at Kolkata estimation Bangalore. Aircrew is present on-board serving food to passengers and taking care of their safety.

Transport of Passengers by Road

The local road transport service falls under group 99641 and the long-distance transport service falls under group 99642. If a passenger travels by motor cab and pays for fuel cost too. In that case, an 18% GST rate will be a levy on such transport. On the other hand. If a passenger travels by an air-conditioned stage carriage (bus) and radio taxis then in this case 5% GST rate will apply.


Large carrying capacity Compares to other means of transport. Railways are known for the bulk carriage of goods over long distances. The Indian road network is one of the largest in the world. It has a total road length of 18 lakh kilometres of which 50 per cent surface. Of this, national highways account for 35,000 kilometres account for 50 per cent of total traffic. On this road length, 9 lakh vehicles ply carrying goods.

Road transport is speedier than the railways giving point to point service resulting in price stabilisation and consumer satisfaction. The business community needs not wait because of the wagon shortage. Transhipment because a truck has a smaller capacity and is flexible available 24 hours.

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