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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 / PenaltyNew Proposed Provision / Minimum Penalties
177GeneralRs 100Rs 500
New 177ARules of road regulation violationRs 100Rs 500
178Travel without ticketRS 200Rs 500
179Disobedience of orders of authoritiesRs 500Rs 2000
180Unautorized use of vehicles without licenceRs 1000Rs 5000
181Driving without licenceRs 500Rs 5000
182Driving despite disqualificationRs 500Rs 10,000
182 BOversize vehiclesNewRs 5000
183Over speedingRs 400Rs 1000 for LMV

Rs 2000 for Medium passenger vehicle

184Dangerous driving penaltyRs 1000Upto Rs 5000
185Drunken drivingRs 2000Rs 10,000
189Speeding / RacingRs 500Rs 5,000
192 AVehicle without permitupto Rs 5000Upto Rs 10,000
193Aggregators (violations of licencing conditions)NewRs 25,000 to

Rs 1,00,000

194OverloadingRs 2000 and

Rs 1000 per extra tonne

Rs 20,000 and

Rs 2000 per extra tonne

194 AOverloading of passengersRs 1000 per extra passenger
194 BSeat beltRs 100Rs 1000
194 COverloading of two wheelersRs 100Rs 2000, Disqualification for 3 months for licence
194 DHelmetsRs 100Rs 1000 Disqualification for 3 months for licence
194 ENot providing way for emergency vehiclesNewRs 10,000
196Driving Without InsuranceRS 1000Rs 2000
199Offences by JuvenilesNewGuardian / 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
206Power of Officers to impound documentsSuspension of driving licenses u/s 183, 184, 185, 189, 190, 194C, 194D,194E
210 BOffences committed by enforcing authoritiesTwice the penalty under the relevant section