MOTOR VEHICLES (AMENDMENT) ACT, 2019

The Act provides for grant of licenses and permits related to motor vehicles, standards for motor vehicles, and penalties for violation of these provisions.

Compensation for road accident victims:

The Act increases the minimum compensation for hit and run cases.

  • In case of death, from Rs 25,000 to two lakh rupees, and
  • In case of grievous injury, from Rs 12,500 to Rs 50,000.

Road Safety

  • The Act increases penalties to act as deterrent against traffic violations.
  • Stricter provisions are being proposed in respect of offences like juvenile driving, drunken driving, driving without license, dangerous driving, over-speeding, overloading etc.
  • Stricter provisions for helmets have been introduced along with provisions for electronic detection of violations.
  • Penalty regarding motor vehicles is to be increased by 10 % every year.

Cashless treatment of victims

The Act provides for a scheme for cashless treatment of road accident victims during golden hour (time period of up to one hour following a traumatic injury)

Third Party Insurance

  • The Act provides for a scheme for providing interim relief to claimants seeking compensation under third party insurance.
  • There will be a 10 time increase in insurance compensation, from
  • Rs 50, 000 to Rs 5 lakh. Claim process has been simplified.
  • Insurance firms have to pay claims within a month, if the victim’s family agree to accept Rs 5 lakh compensation.

Accident Fund

The Act requires the central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India.

Protection of Good Samaritan

The Act defines a Good Samaritan as a person who renders emergency medical or non-medical assistance to a victim at the scene of an accident, and provides rules to prevent harassment of such a person.

Vehicle Fitness

  • The Act mandates automated fitness testing for vehicles.
  • Penalty has been provided for deliberate violation of safety/environmental regulations.
  • The testing agencies issuing automobile approvals have been brought under the ambit of the Act and standards will be set for motor vehicle testing institutes

Recall of vehicles:

  • The Act allows the central government to order for recall of motor vehicles if a defect in the vehicle may cause damage to the environment, or the driver, or other road users.
  • The manufacturer of the recalled vehicle will be required to:
  • Reimburse the buyers for the full cost of the vehicle, or
  • Replace the defective vehicle with another vehicle.

National Transportation Policy:

  • Development of integrated Transport System
  • This will also enhance the powers of the State Governments, provide better last mile connectivity, rural transport etc.

Road Safety Board:

  • The Act provides for a National Road Safety Board, to be created by the central government through a notification.
  • The Board will advise the central and state governments on all aspects of road safety and traffic management.

Taxi aggregators:

  • The Act defines aggregators as digital intermediaries or market places which can be used by passengers to connect with a driver for transportation purposes (taxi services).
  • These aggregators will be issued licenses by state.
  • Further, they must comply with the Information Technology Act, 2000.

Improving Services using e-Governance

This includes

  • Provision for online driving licenses.
  • Process of Vehicle Registration
  • Drivers Training

Issues and challenges

  • There will be implementation challenges at all-India level.
  • Road transport being a subject on the Concurrent List, State governments are also free to make their own laws and rules.
  • For effective monitoring of traffic violations and accidents, electronic surveillance is essential. This could involve substantial investment, and it is not clear who will bear the cost.
  • Lack of road infrastructure, also need to be taken into account.
  • Many also raised the question of the effectiveness of making a Road Safety Board with only advisory powers, instead of making it responsible for deciding road-building standards.

Way forward

  • State governments should ensure transparency and provide a hassle-free experience for citizens at the Regional Transport Offices.
  • Vehicle manufacturers should update their technologies and adopt the best global practices regarding vehicles’ and passengers’ safety.
  • With an array of embedded sensors informing drivers of other on-road cars, onboard analytics can give them real-time driving suggestions to avoid collisions.
  • The Centre must present its National Transport Policy without delay.
  • States must be incentivized and use modern management practices to provide clean, comfortable and affordable services for all users.
  • Effective implementation is required as zero tolerance enforcement of even small fines reduces violations, while stringent penalties are either not enforced or lead to more bribery.