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Much Awaited Motor Vehicle Act amendment Bill 2016 clears it ground through the Cabinet approval

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On its commitment to reduce the road accidents and fatalities, the Union Cabinet led by the Prime Minister Shri Narendra Modi approved the Motor Vehicle (Amendment) Bill 2016.

About Motor Vehicle Act: 

  1. The Motor Vehicles Act, 1988 is an Act of the Parliament of India which regulates all aspects of road transport vehicles.
  2. The Act came into force from 1 July 1989. It replaced Motor Vehicles Act, 1939 which earlier replaced the first such enactment Motor Vehicles Act, 1914. 
  3. The Act provides in detail the legislative provisions regarding licensing Motor Vehicle Act amendment Bill 2016of drivers/conductors, registration of motor vehicles, control of motor vehicles through permits, special provisions relating to state transport undertakings, traffic regulation,insurance, liability, offences and penalties, etc.
  4. Under this act, there is a provision to provide Rs.50,000 to Rs. 1 lakh as interim relief to the family of victim of fatal accidents. The cases of road accident compensation claims are decided in the Motor Accident Claims Tribunal.

Recent Amendment:-

In the present Motor Vehicle Act, there are 223 Sections out of which the Bill aims to amend 68 sections whereas Chapter 10 has been deleted and a Chapter 11 is being replaced with new provisions in order to simplify third party insurance claims and settlement process.

This new Motor Vehicle Amendment Bill 2016 provision emphasizes on the following attributes:-

  • To levy hefty penalties for violation of traffic norms including up to Rs 10,000 fine for drunken driving and Rs 2 lakh compensation for hit-and-run cases.
  • Provision of up to Rs 10 lakh compensation in case of road fatality.
  • Increase in compensation for Hit & Run cases from Rs. 25000 to Rs. 2 lakhs.
  • Addition of 28 new sections.

The amendments mainly focus on issues relating to

  • Improving road safety,
  • Citizens’ facilitation while dealing with the Transport Department.
  • Strengthening rural transport,
  • Last mile connectivity and public transport,
  • Automation and computerization and
  • Enabling online services.

It gives the adjudge to the State Government to specify a multiplier, not less than one and not greater than ten, to be applied to each fine under this Act and such modified fine and also to regulate the activities in a public place of pedestrians and such means of transport.

  • New “Vahan” & “Sarathi” platforms to create National Register for Driving Licence and National Register for Vehicle registration to facilitate uniformity of the process across the country.
  • In order to address the shortage of commercial drivers in the country, the driving training process has been strengthened enabling faster issuance of transport licenses.
  • The process for testing and certification for automobiles is proposed to be regulated more effectively.  The testing agencies issuing automobile approvals have been brought under the ambit of the Act.
  • Stricter provisions are being proposed in respect of offences like juvenile driving, drunken driving, driving without license, dangerous driving, over-speeding, overloading.

The complete list of various penalties to be levied by the new amendment of the Motor Vehicle Act, (amendment), 2016.

Section   Old Provision / Penalty New Proposed Provision / Minimum Penalties
177 General Rs 100 Rs 500
New 177A Rules of road regulation violation Rs 100 Rs 500
178 Travel without ticket RS 200 Rs 500
179 Disobedience of orders of authorities Rs 500 Rs 2000
180 Unautorized use of vehicles without licence Rs 1000 Rs 5000
181 Driving without licence Rs 500 Rs 5000
182 Driving despite disqualification Rs 500 Rs 10,000
182 B Oversize vehicles New Rs 5000
183 Over speeding Rs 400 Rs 1000 for LMV

Rs 2000 for Medium passenger vehicle

184 Dangerous driving penalty Rs 1000 Upto Rs 5000
185 Drunken driving Rs 2000 Rs 10,000
189 Speeding / Racing Rs 500 Rs 5,000
192 A Vehicle without permit upto Rs 5000 Upto Rs 10,000
193 Aggregators (violations of licencing conditions) New Rs 25,000 to

Rs 1,00,000

194 Overloading Rs 2000 and

Rs 1000 per extra tonne

Rs 20,000 and

Rs 2000 per extra tonne

194 A Overloading of passengers Rs 1000 per extra passenger
194 B Seat belt Rs 100 Rs 1000
194 C Overloading of two wheelers Rs 100 Rs 2000, Disqualification for 3 months for licence
194 D Helmets Rs 100 Rs 1000 Disqualification for 3 months for licence
194 E Not providing way for emergency vehicles New Rs 10,000
196 Driving Without Insurance RS 1000 Rs 2000
199 Offences by Juveniles New Guardian / owner shall be deemed to be guilty. Rs 25,000 with 3 yrs imprisonment. For Juvenile to be tried under JJ Act. Registration of Motor Vehicle to be cancelled
206 Power of Officers to impound documents Suspension of driving licenses u/s 183, 184, 185, 189, 190, 194C, 194D,194E
210 B Offences committed by enforcing authorities Twice the penalty under the relevant section