By | December 22, 2017
Motor Vehicle Act Amendment

The Motor Vehicle Act (Amendment) Bill 2017 proposes imposition of hefty penalties on auto companies found manufacturing faulty vehicles, is coming up in the Rajya Sabha in this Winter Session. The Bill too seeks statuary guidelines for cab aggregators.

There is 10% annual increase in penalties for traffic rule violations. This bill will help to reduce road accidents up to 50% by 2020. The Motor Vehicle Act (Amendment) Bill 2017 is an important legislation as it will change the 30-year-old law. Altogether there will be a change in the 30-year-old law, as there is an annual increase of 10% so that the road accidents get minimised.

Below are the main proposals in the Bill:

  1. The minimum fine for drunk driving has been increased from Rs 2,000 to Rs 10,000.
  2. While driving talking on the phone will cost a fine of Rs 5,000, up from Rs 1,000, at present.
  3. A Motor Vehicle Accident Fund will provide compulsory insurance cover to all road users for certain type of accidents.
  4. Those who come forward to help accident victims will be protected from civil or criminal liability. They are not to be forced to disclose their identity or any medical personnel. It is made optional for them.
  5. In traffic violations by juveniles, the guardians or owner of the vehicle would be held responsible unless they prove the offence was committed without their knowledge or they tried to prevent it. The registration of the motor vehicle in question will be canceled. The juvenile will be tried under the Juvenile Justice Act.
  6. Aadhaar card is made compulsory for getting a driving license and vehicle registration.
  7. For deaths in hit-and-run cases, the government will provide a compensation of Rs 2 lakh or more to the victim’s family. The present amount is just Rs 25,000.
  8. Driving without a license will attract a minimum fine of Rs 5,000 as currently, the amount is Rs 500.
  9. The fine of Rs 400, at present for over-speeding has been increased to Rs 1,000 to 2,000.
  10. It will be mandatory to alter vehicles to make them suitable for specially-abled people.
  11. Contractors, consultants and civic agencies will be responsible for the construction of faulty designs or poor maintenance of roads which leads to road accidents.
  12. A time limit of six months has been specified for an application of compensation to the Claims Tribunal in relation to road accidents.
  13. The Bill removes the cap on liability for third-party insurance. The recent Bill had capped the maximum liability at Rs 10 lakh in the death case and for grievous injury, it is 5 lakh.
  14. The time limit for renewal of the driving license is increased from one month to one year before and after the expiry date of the driving license.
  15. Manufacturers can be fined up to Rs 500 crore in case of sub-standard components or engine.
  16. Not wearing a seatbelt will cost fine of Rs 1,000 as compared to Rs 100 at present.
  17. The fine for rash driving has been increased from Rs 1,000 to Rs 5,000.

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Content Writer – DHWANI SAHNI

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