By | April 14, 2017

Recently, the Lok Sabha, passed the Motor Vehicles (Amendment) Bill, 2016.

The Bill was introduced in the Lok Sabha on August 9, 2016, aiming to amend the Motor Vehicles Act, 1988, and resolve issues around third party insurance, regulation of taxi aggregators, and road safety. The Cabinet had then approved various changes in the Bill last month. These include 16 amendments and rejection of three suggestions made by the Parliament Standing Committee. The Bill will now go to the Rajya Sabha for its nod, and then the President of India for assent.

Major aspects of the Bill:

  • It links driving license and vehicle registration with Aadhaar Card. This is essential for de-duplication of licenses and registration of stolen vehicles.
  • A penalty of ₹10,000 for ‘not providing way for emergency vehicles’. (Section 194E of the Act)
  • Oversizing of the vehicle is now punishable with Rs. 5,000. Any alteration prohibited by chapter VII of the Act is punishable with fine of Rs. 1 Lakh or imprisonment of up to 1 year (Section 182A of the Act)                                              
  • It removes the limit on liability for third party insurance. The 2016 Bill had limited the maximum liability for third party insurance in case of a motor accident at Rs 10 lakh in case of death and at five lakh rupees in case of grievous injury. This limit has been removed by the 2017 Bill.
  • It proposes alterations in vehicles, in order to make them suitable for specially-abled people.

  • It provides for a Motor Vehicle Accident Fund, which would provide compulsory insurance cover to all road users in India for certain types of accidents.
  • It proposes a National Road Safety Board (NRSB), to be created by the Central Government through a notification. The Board will provide advice to the Central and State Governments on all aspects of road safety and traffic management.
  • It empowers the State Governments to specify a multiplier, between 1 to 10, to be applied to each fine under this Act.
  • Contractors, consultants, and civic agencies will be accountable for faulty design, construction or poor maintenance of roads leading to accidents. Those found guilty would be penalized up to Rs 1 lakh. (Section 198A of the Act)

  • Now, any case of accident done by a minor, the guardian of the minor will be deemed guilty and will be punished with 3 years of imprisonment and fine of Rs. 25,000. The same minor will be eligible for driving license after he attains the age of 25 years. (Section 199A of the Act)
  • By- Shubham Sharma (Content Writer)



What did I miss? Don't forget to leave your valuable feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.