Major amendments in proposed motor vehicle bill

Higher penalties for violations and higher compensations for accident victims are proposed

The new Union Cabinet on Tuesday has approved the Motor Vehicle (Amendment) Bill, which lapsed in the last term, with stringent rules and large penalties for offences on the roads. The bill will now be introduced in the Parliament for approval.

The bill will amend the Motor Vehicles Act 1988 so as to cope with the current scenarios. The Central Government aims to make a centralised mechanism to register and control the vehicle population. This will take away some power from the motor vehicle departments of the states.

Penalties

Among the changes, one bill highlight is the higher penalties for offences committed by drivers and vehicle owners. The penalty for drunk driving would be Rs. 10,000 instead of the current Rs. 2,000. In case of substandard vehicle manufacturing or irregularities in maintenance standards, the fine for the manufacturer would be up to Rs. 100 crore or imprisonment of up to one year or both.

The bill proposes a Rs. 10,000 fine for people driving despite licence disqualification and for those not making way for emergency vehicles like ambulances. Unauthorised use of vehicles without licence will attract a fine of Rs. 5,000, while for dangerous driving, the fine will be Rs. 5,000 instead of Rs. 1,000. For overloading, the fine will be Rs. 20,000.

For speeding, the penalties will be in the range of Rs. 1,000 to Rs. 2,000. Driving vehicles without insurance will attract a fine of Rs. 2,000. A fine of Rs 1,000 and three-month suspension of driving license is proposed for riding two-wheelers without helmets. The fine for not wearing a seatbelt will be Rs. 1,000.

For offences by juveniles, the guardian/owner will be deemed guilty and a penalty of Rs. 25,000 will be imposed, apart from cancellation of vehicle registration.

The fine for a traffic violation has been hiked from Rs. 100 to Rs. 500, while disobedience of the orders of authorities will have a fine of Rs. 2,000 instead of Rs. 500.

New rules for driving licence

To obtain a driving licence, the new rule mandates that a person will have to pass a training module prescribed by the Central Government at recognised training institutes. The validity of the driving licence will be reduced from the current 20 years to 10 years for drivers between the ages of 30 and 50. If someone gets a licence between the age of 50 and 55, it will be valid till age 60, while for those who renew licences after age 55, the validity of the renewed licence will be for only five years.

Recalling defective vehicles

The bill allows the Central Government to recall vehicles if it is reported to the government due to a defect in the vehicle or causes damage to the environment, driver or road users. The bill also mandates that the manufacturer should reimburse the purchase amount to the buyers or replace the defective vehicle with another one.

Rule for cab aggregators

Introduction of cab aggregators is a new addition to the bill. It defines aggregator as a digital intermediary or marketplace and instructs such aggregators to follow the Information Technology Act, 2000. The State Government has to grant licence to such aggregators. This will boost the spread of app-based aggregators like Uber and Ola and take them to more locations. Aggregators violating licencing conditions will be fined up to Rs. 1 lakh, as per the provisions in the Bill.

Compensation and insurance

The bill has proposed an increase in the compensation and insurance for victims of road accidents. For hit-and-run incidents, the compensation has been hiked from Rs. 12,000 for grievous injury to Rs. 50,000 and for death, the penalty would rise from Rs 25,000 to Rs. 2 lakh or more. The insurance for vehicles would be compulsory and an insurance amount of Rs. 10 lakh would be paid for deaths and Rs. 5 lakh for grievous injuries. Earlier, this would be possible only through courts.

The bill also ensures the computerisation of certain services and mandates that the State Government should implement electronic monitoring and enforcement of road safety on national highways, state highways and urban roads under the Central Government rules.

Protection for good Samaritans has also been proposed in the bill. Those who help accident victims will be protected from civil and criminal liability.