In order to evaluate transport policies realistically, it is necessary to analyse the commuter behaviour right from the start of the trip at origin to reaching destination and microscopic traffic simulation (MTS) is most suitable for this purpose as it analyzes individual vehicle/ driver behaviour more precisely and realistically than other methods. MTS is nothing but series of human decisions under various traffic situations. Since human element is involved at many stages of simulation, the possibility of approximation/ uncertainty in the decisions would be high and most of the simulation models ignore this. In this direction, fuzzy logic technique appropriately considers such approximations into account while modelling drivers'' decisions. In the present study, a Fuzzy Logic based Microscopic Traffic Simulation Model (FLoMiTSiM) to describe human behaviour on urban road network at many possible situations (eg. partial lane change) is proposed and appropriately validated using observed data from the city of Gifu, Japan. To demonstrate the applicability of the proposed FLoMiTSiM, various transport policies are evaluated.