The Diu Transport Department is functioning under the provisions of the Motor Vehicles Act, 1988, Central Motor Vehicles Rules, 1989 and Daman & Diu Motor Vehicles Rules, 1989.
Taxes are levied according to the provisions of the Goa and Diu Motor Vehicles Taxation Act, 1974, Goa, Daman & Diu Motor Vehicles Tax (Taxation on Passengers & Goods) Act, 1974 and Goa, Daman & Diu Motor Vehicles (Taxation on Passengers & Goods) Rules, 1975.
Diu RTO department also assists other organizations in the development of transport facilities and road safety.
A car insurance policy is mandatory for every vehicle registered at Diu RTO as per The Motor Vehicle Act, 1988.