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Module 6 (1)

The Motor Vehicles Act, 1988 establishes a framework for traffic safety and mandates insurance for motor vehicles against third-party risks. It allows for compensation claims without proving fault in certain cases, and creates the Motor Accidents Claims Tribunal for efficient adjudication of such claims. The Act also outlines the insurer's liabilities and the procedures for compensation applications, including provisions for hit-and-run accidents.

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0% found this document useful (0 votes)
2 views18 pages

Module 6 (1)

The Motor Vehicles Act, 1988 establishes a framework for traffic safety and mandates insurance for motor vehicles against third-party risks. It allows for compensation claims without proving fault in certain cases, and creates the Motor Accidents Claims Tribunal for efficient adjudication of such claims. The Act also outlines the insurer's liabilities and the procedures for compensation applications, including provisions for hit-and-run accidents.

Uploaded by

nirmalajaimon
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Module VI Law of Torts

MV Act,1988-no fault liability–compensation –principle of insurance- insurance liability-


effects of breaking laws.

The Motor Vehicles Act, 1988 is a comprehensive enactment in respect to various matters relating
to traffic safety on the roads and minimization of road accidents. The Motor Vehicles Act, 1988,
like the Act of 1939 makes the insurance of motor vehicles against third party risks, compulsory.
Insurance against third party risks is compulsory for the motor vehicles to be used in public places.
The object of the provision is to protect the interest of a third party, who suffers by the use of the
said vehicle. The insurer is liable to indemnify the person, or classes of persons, specified in the
policy in respect of any liability, which the policy purports to cover in the case of that person or
those classes of persons. It is the duty of the insurers to satisfy judgments against persons insured
in respect of third party risks.

Liability without fault in certain cases (Sees. 140 to 144)

The Motor Vehicles Act recognizes both with and without fault liability. In case of the death of a
person, Rs. 50,000/- and in case of permanent disablement Rs. 25,000/- can be claimed as
compensation without pleading or establishing any fault of the owner or the driver of the vehicle.
In case the claim exceeds the above stated sums, fault on the part of the owner or the driver of the
vehicle, as the case may be, has got to be proved.

Claims Tribunal and Award of compensation (Ss. 165-176)

A new forum, i.e., Motor Accidents Claims Tribunal (Claims Tribunal) has been created by the
Motor Vehicles Act for cheaper and speedier remedy to the victims of accidents of motor vehicles.
The Claims Tribunal can follow summary procedure.

An appeal from the decision of the Claims Tribunal lies directly to the High Court. The Motor
Vehicles Act lays down self-contained code of procedure for adjudication of claims.

A State Government may, by notification in the Official Gazette, constitute one or more Motor
Accidents Claims Tribunals for such area as may be specified in the notification.

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Where any Claims Tribunal has been constituted for any area, no civil Court shall have jurisdiction
to entertain any question relating to any claims for compensation which may be adjudicated upon
by the Claims Tribunal for that area.

Matters of adjudication by Claims Tribunals

According to Section 165, the Claims Tribunals are constituted for the purpose of adjudicating
upon claims from compensation : (i) in respect of accidents arising out of the use of motor vehicles,
and (ii) involving : (a) the death of, or bodily injury to persons, (b) damage to any property of third
party so arising, or (c) both.

The Claims Tribunal has jurisdiction to entertain claims for compensation when an accident arises
out of the use of the motor vehicle. The use of the vehicle may have been either in a public place
or a private place. It may be noted here that the liability of an insurer for a policy issued by him
under Section 147 ordinarily arises if the accident is caused in a public place. From the fact that
the liability of the insurer is limited only to accidents occurring in public places, it cannot be
inferred that the jurisdiction of the Claims Tribunal is also restricted to accidents taking place in a
public place. If the accident is not in a public place, the award of compensation may not be against
the insurer, but only against the owner or the driver of the vehicle.

Application for compensation

According to Section 166, an application for compensation may be made : (i) by the person who
has sustained the injury, or (ii) by the owner of the property, or (iii) where death has resulted from
the accident, by all or any of the legal representatives of the deceased, or (iv) by an agent duly
authorized by the person injured or all or any of the legal representatives of the deceased, as the
case may be.

Every application for compensation shall be made to the Claims Tribunal having jurisdiction over
the area in which the accident occurred.

The time limit of making the application for compensation is six months from the occurrence of
the accident. The Claims Tribunal may, however, entertain the application after the expiry of the
said period of 6 months, if it is satisfied that the applicant was prevented by sufficient cause from
making the application in time.

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Award of the Claims Tribunal

On receipt of an application for compensation made under Section 166, the Claims Tribunal shall,
after giving the parties an opportunity of being heard, hold an enquiry into

the claim and may make an award determining the amount of compensation, which appears to it
to be just. In the award it is to specify the person or persons to whom, compensation shall be paid.
It has also to specify the amount which shall be paid by the insurer or the owner or the driver of
the vehicle involved in the accident or by all or any of them, as the case may be. (Sec. 168).

Appeals to the High Court (Sec. 173)

Any person aggrieved by the award may prefer an appeal to the High Court. The time limit for
such appeal is 90 days from the date of the award of Claims Tribunal. The High Court may,
however, entertain an appeal after the expiry of the said period of 90 days, if it is satisfied that the
appellant was prevented by sufficient cause from preferring the appeal in time.

Before an appeal is preferred, a person against whom there is an award for payment of an amount,
should deposit in the High Court Rs. 25,000/- or 50% of the amount so awarded, whichever is less.

No appeal shall lie against an award of a Claims Tribunal, if the amount in dispute in the appeal is
less than Rs. 10,000.

Recovery of money due under award as arrears of land revenue.—

According to Section 174, where any money is due from any person under an award, the Claims
Tribunal may, on application made to it by the person entitled to the money, issue a certificate for
the amount to the Collector and the Collector shall proceed to recover the same in the same manner
as an arrears of land revenue.

Payment of compensation in hit and run motor accident (Sections 161, 162 & 163)

If there is a hit and run motor accident, i.e., the accident arising out of the use of a motor vehicle
the identity whereof cannot be ascertained in spite of reasonable efforts, there is a special provision
for compensation in such a case. In such a case, the compensation to be paid shall be as follows:
As per the Motor Vehicles (Amendment) Act, 1994 :

(i) in respect of the death of a person, a fixed sum of Rs. 25,000/-

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(ii) in respect of the grievous hurt to any person, a fixed sum of Rs. 12,500/-

Compulsory Insurance

The Motor Vehicles Act, 1988, makes the insurance of motor vehicles compulsory. The owner of
every motor vehicle is bound to insure his vehicle against third party risk. The insurance company,
i.e., the insurer covers the risk of loss to the third party by the use of the motor vehicle. Thus, if
there is insurance against third party risk, the person suffering due to the accident (third party)
caused by the use of motor vehicle may recover compensation either from the owner or the driver
of the vehicle, or from the insurance company, or from them jointly. All such person’s risk of loss
to whom, on account of the use of the vehicle, is required to be covered are 'third party' in the sense
that they are other than the 'first party' the insurer and the 'second party' the insured.

Object of compulsory insurance

All motor vehicles to be used in public places need to be insured against third party risks. The
object of this provision is to protect the interest of a third party, who suffers by the use of the said
vehicle. If the vehicle is insured against third party risks, the injured party can claim compensation
from the insurance company. Even if the driver or the owner of the vehicle is not in a position to
pay compensation to the accident victim, the insurer will pay compensation on behalf of the owner
of the vehicle insured. This provision aims at giving relief to such person who would have suffered
because of the inability on the part of the owner or driver of the vehicle to pay compensation. The
insurer is liable to indemnify the person, or classes of persons, specified in the policy in respect of
any liability, which the policy purports to cover in the case of that person or those classes of
persons. It is the duty of the insurers to satisfy judgments against persons insured in respect of
third party risks.

Nature and Extent of Insurer's liability

According to Section 147, the policy of insurance, issued by an authorized insurer, is required to
cover certain kinds of risks up to a certain extent. The position is as under : (1) The insurance is to
insure the person or classes of persons specified in the policy. An insurance contract is a personal
contract between the insurer and the owner of the vehicle taking the policy, for
indemnifying/covering/protecting the insured for damage caused to a third party from an accident.
If the motor vehicle is transferred, the insurance policy lapses on such transfer, and the insurer

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cannot be made liable unless the policy of insurance is also transferred with the consent of the
insurer. The insurance is against liability for the death of, bodily injury to, any person, or damage
to any property of a third party, or death of or bodily injury to any passenger of a public service
vehicle. If it is an 'Act' policy, i.e., the policy only to cover the liability mentioned in the Act, the
insurer cannot be made liable for damage to a gratuitous passenger, or a pillion rider on a scooter.
The insurer is, however, free to issue a policy (e.g., a comprehensive policy) in which he
undertakes to be liable even for damage to a gratuitous passenger.

(2) The liability of the insurer is only to the extent of the limits mentioned in Section 147 (2) of
the Act. The amount of liability incurred and in respect of any property of a third party a limit of
6000/-. The insurer is, however, free to undertake greater liability, by so providing in the agreement
contained in the policy of insurance.

(3) The insurer's liability arises under Section 147 if the damage is caused by, or arises out of, the
use of the motor vehicle in a public place.

According to Section 149, it is the duty of the insurer to satisfy judgments against the person
insured in respect of third-party risks. The liability which falls on the insured is to be discharged
by the insurer, as if he were the judgment-debtor, in respect of the liability.

According to Section 149 (2), notice of the proceedings, through the Court, is required to be given
to the insurer, and the insurer to whom such a notice has been given is entitled to be made a party
to the proceedings and to defend himself.

The insurer's liability commences as soon as the contract of insurance comes into force and
continues during the operation of the policy. An insurer cannot avoid his liability after the issue of
certificate of insurance.

An insurer cannot avoid his liability merely on the ground that the driver was driving without a
licence, or he was driving without a proper licence.

Requirements of insurance policies and limits of insurer's liability

Section 147 provides about the requirements of valid policy of insurance, and also the limits up to
which the insurer will be liable in respect of an insurance policy.

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(1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy
which— (a) is issued by a person who is an authorized insurer; and (b) insures the person or classes
of persons specified in the policy to the extent

(1) against any liability which may be incurred by him in respect of the death of or bodily injury
to any person, including owner of the goods or his authorized representative carried in the vehicle
or damage to any property of a third party caused by or arising out of the use of the vehicle in a
public place; against the death of or bodily injury to any passenger of a public service vehicle
caused by or arising out of the use of the vehicle in a public place

(2) a policy of insurance, shall cover any liability incurred in respect of any accident, up to the
following limits, namely :— (a), the amount of liability incurred; (b) in respect of damage to any
property of a third party, a limit of rupees six thousand : Provided that any policy of insurance
issued with any limited liability and in force, immediately before the commencement of this Act,
shall continue to be effective for a period of four months after such commencement or till the date
of expiry of such policy whichever is earlier.

(3) A policy shall be of no effect for the purposes of this Chapter unless and until there is issued
by the insurer in favour of the person by whom the policy is effected a certificate of insurance in
the prescribed form and containing the prescribed particulars of any condition subject to which the
policy is issued and of any other prescribed matters; and different forms, particulars and matters
may be prescribed for different cases.

(4) an insurer issuing a policy of insurance under this section shall be liable to indemnify the
person or classes of persons specified in the policy in respect of any liability which the policy
purports to cover in the case of that person or those classes of persons."

Commencement of insurer's liability

The insurer's liability commences as soon as the contract of insurance comes into force and remains
operative during the operation of the policy. In case of renewal of an existing insurance policy, the
risk is covered from the moment the renewal comes into force.

In National Ins. Co. Ltd. v. J.N. Dhabi, the contract of renewal of an insurance policy came into
force w.e.f. 25.10.1983 at 4.00 p.m, whereas the accident in question had occurred on 25.10.1983

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at 11.14 a.m., i.e., before the renewal of the contract. It was held by the Supreme Court that the
insurer could not be made liable for such an accident. In National Ins. Co. Ltd. v. R.K. Paswan,
the question arose about the position of the parties if an insurance company pleads that the vehicle
involved in the accident was not insured by it. In such a case, it has been held, that it is the primary
duty of the vehicle owner to disclose the insurance particulars of the vehicle and prima facie prove
that the vehicle was insured with a particular company, failing which the vehicle owner has to pay
the entire amount of compensation awarded in the case. It has also been held in the case that in
case of a dispute regarding the vehicle having been insured by an insurance company, it is the duty
of the Tribunal to give its findings as to whether the vehicle was insured by the said insurance
company or not. In V. Rani v. New India Assurance Co. Ltd., it has been held that the insurer
cannot avoid his liability after the issue of certificate of insurance. In this case, the certificate of
insurance was signed by the insured company's officials on 18-2-92. The insured vehicle met with
an accident only thereafter. It was held that the liability of the insurer had come into existence
under the Motor Vehicles Act towards the third party. The plea of the insurance company that the
certificate of insurance was wrongly granted either by reason of any mistake or fraud committed
by either of the parties or by its officers, was rejected. It was held that the insurer should pay to
the third party. Thereafter, the insurer could have the remedy of a separate action against the owner
of the vehicle to recover that amount. As regards the liability of the Insurer, the dicta laid down by
the Apex Court clarifies that if on the date of accident, the policy subsists, then only the third party
would be entitled to avail the benefit thereof. It has been held that ordinarily a liability-under the
contract of insurance would arise only on payment of premium, if such payment is made a
condition precedent for taking effect of the insurance policy, but such a condition, which is
intended for the benefit of the insurer can be waived by it. In National Insurance Co. Ltd. v.
Yellamma, the owner of the vehicle after getting the vehicle insured issued third party cheque
towards the payment of the premium. The Development Officer of the Insurer by inadvertence
issued a cover note. When the said mistake came to his notice, the owner was asked to pay the
amount of the premium. The amount so asked, was not tendered and instead the owner returned
the original cover note and took back the cheque. As a result, the cover note was cancelled.
Thereafter the vehicle met with an accident. Since, there was no valid insurance policy as on the
date of the accident, the Apex Court held that the insurer was not liable to pay compensation for
the accident occurred.

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Effects of breaking laws.

Public Transport/State/Contract Carriage

* The fine imposed on those travelling without the right ticket or not producing the valid ticket/pass
during inspection in public transport is Rs 500.

* The driver or conductor of a Public Transport who refuses to give valid ticket can be punished
and be liable to pay a fine up to Rs 500.

* Those drivers/conductors of a 'Contract Carriage' who fail to fulfil their duty to carry passengers
are liable to pay a fine up to Rs 50 in case of two/three wheelers and up to Rs 500 for others.

* Those who disobey any order of concerned authorities is liable to pay Rs 2000 and if anyone
refuses to provide information or provides false information to the authorities is liable to pay a fine
up to Rs 2000 and/or imprisonment up to one month.

Unauthorized Driving and Driving License

* Permitting an unauthorized person to drive is an offence and the person in charge/ owner of the
vehicle will have to pay a fine up to Rs 5000 or/and face imprisonment up to 3 months.

* Driving without holding a 'Driver’s License' will end up in imprisonment up to 3 months and/or
fine up to Rs 5000.

* He/she who has been disqualified for holding or obtaining a 'Driver’s License' and yet, is found
to be driving in public places will be treated as an offender and is legally bound to pay a fine up to
Rs 10,000 and/or face imprisonment up to 3 months. The license then obtained will also not have
any effect.

* Those who do not possess a valid conductor license but works as conductor in 'Public
Transport'/'Stage Carriage', will have to face imprisonment extending up to one month and/or pay
fine of Rs 10,000. His/ Her license will also remain ineffective.

Modification of a Motor Vehicle

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* Modification of one’s motor vehicle that doesn’t comply with the rules set by the Government
under this act is an offence and the offender will be liable to imprisonment of up to 6 months and/or
fine of Rs 5000 per alteration.

Violating Speed Limits

In order to control traffic, the Government has maximum and minimum speed limits which are
determined by the Central Government and the relevant State Governments. Not complying with
these speed limits will result in the driver / employer of the driver, whoever is responsible for the
speed to pay a fine as follows:

* For 'Light Motor Vehicle' Rs 1000 to Rs 2000

* 'Medium Goods Vehicle' / 'Medium Passenger Vehicle' / 'Heavy Goods Vehicle' / 'Heavy
Passenger Vehicle' Rs 2000 to Rs 4000

* If found guilty for the second time or subsequently, the Police Officer or the authorised personal
can confiscate the 'Driver’s License' and forward it to the concerned officials for
disqualification/revocation.

Drunken Driving

* If the 'Driver' of a motor vehicle is found to have consumed alcohol and has alcohol more than
30 mg per 100 ml in his/her blood sample or has consumed drugs (any intoxicant which falls under
the list as per the Central Government Notification) is legally bound to pay a fine of Rs 10,000
and/or face imprisonment up to six months for the first offence. If found guilty again, the
punishment will be up to 2 years imprisonment and/or fine of Rs 15,000.

Dangerous Driving Jumping Red light, Wrong Direction driving, using mobile phones etc.

* If someone drives the vehicle in a dangerous manner which causes alarm/distress to those in the
vehicle, other road users and those near the roads, the public, depending on the nature, condition
and the kind of place is liable to be imprisoned for a term of 6 months to one year and/or fine
varying from Rs 10,000 to Rs 50,000. Examples of dangerous manner include jumping red lights,
not following stop sign, overtaking in wrong direction, using mobile phones, driving in wrong
direction, etc.

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Accidents & Penalty for not stopping a Vehicle

* It is the driver’s duty to stop the vehicle when asked to do so by an authorized Police Officer or
by someone in charge of an animal. In case of an accident, he is also responsible for any damage
inflicted upon 'Third Party' or 'Third Party’s Property' due to his driving. He/she has to take the
injured person to the nearest hospital and report the same to the Police. Failing to do so will result
in an imprisonment which can extend up to six months and/or Rs 5000 fine. Repeating this offence
will result in one-year imprisonment and/or Rs 10,000 fine. This is in addition to the other criminal
liabilities.

Vehicle in Unsafe condition

* Driving or knowingly allowing someone else to drive a vehicle which is in an unsafe condition
and has a defect which can be detected beforehand and avoided is a legal offence with Rs 1500
fine. If this results in damage to property or person, then the punishment may extend to
imprisonment up to three months and/or a fine of Rs 5000. Subsequent offence will result in
imprisonment that can extend to six months or with a fine of Rs 10,000 for bodily injury or damage
to property.

Air and Noise Pollution

* Violation of road safety rules, air and noise pollution is punishable with imprisonment of up to
three months and/or fine up to Rs 10,000 and license disqualification for three months. Subsequent
offence will result in imprisonment up to six months and/or fine up to Rs 10,000.

Vehicle without Registration & Insurance

* Driving vehicle without registration is a severe offence that will result in imprisonment of six
months and a penalty of Rs 10,000 fine.

* If a person is driving a vehicle that is not insured, he/she is liable to pay a fine up to Rs 2000
and/or imprisonment up to 3 months. On repetition of this offence, the fine will go up to Rs 4000.

Driving without Helmet

* Penalty for driving a two-wheeler without helmet is Rs 1000 and up to three months suspension
of license. Same is the amount for not wearing seat belts while driving four wheelers.

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Offence committed by a Juvenile

* If any of the offence is committed by a juvenile, the guardian of the juvenile or the owner of the
motor vehicle will be held guilty and action will be taken against him/her unless and until he/she
is unaware of the offence or tried to stop it. The punishment will be fine of Rs 25,000 and
imprisonment up to 3 years in addition to the cancellation of vehicle registration for one year. If
the juvenile holds a learner’s license, he/she will not be eligible for driving license until he/she
attains 25 years of age. Further, action as per Juvenile Justice Act will also be initiated.

Obstructing the Traffic by leaving Vehicle unattended

* For those who obstruct the traffic on the road by leaving their vehicle, an hourly fine of Rs 500
has to be paid. When the vehicle is removed, he/ she also has to bear the expenses of
moving/towing of the vehicle by a government authorised agency This is not applicable for a
vehicle that has been involved in an accident until the inspection is complete.

Power to arrest for certain offences

* Police officers in uniform have the power to arrest without warrant, those who commit
punishable offences like drunken driving, dangerous driving and driving without authority. The
person under arrest has to be subject to medical examination within two hours of custody. The
presence of a female official is mandatory during medical examination if the person under custody
is female.

* If the Police Officer seizes anybody’s a Driving License, he/she must provide a temporary
acknowledgement. This acknowledgement shall not authorise the holder to drive unless he/she
receives their

Driving License

* No one who is prosecuted for driving dangerously and over speeding shall be convicted unless
he/she was given a warning at the time of committing the offence. Also, within two weeks of
committing the offence, a registered post has to be sent to the offender or the registered owner of
the vehicle about the offence and time and location at which it took place.

States can increase these penalties

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The objective of these amendments is to bring down the number of road accidents and loss of lives
that take place as a result of it. The increasing number of vehicles and hence, the vehicle density
on roads only increase possibilities of accidents. In 2017, there have been reports of India having
topped the list of countries in fatalities due to road accidents. In order to curb this, the penalties to
be paid for various offences have been increased 5 to 10 times compared to the existing provisions
as per the 1988 Act. In addition, the State Governments have been authorized to increase the
prescribed penalties with a multiplier, not less than one and not greater than ten, to be applied to
each fine. Different multipliers may be applied to different classes of motor vehicles.

As far as road safety is concerned, discipline is imperative. Violating traffic rules must act as a
deterrent. So, the frequency of getting caught (for violating traffic rules) has to increase. The Motor
Vehicles (Amendment) Act, 2019 if implemented in letter and spirit, can change road habits of all
by not imposing stiffer penalties for breaking the Rules, but also trying to in calculate a sense of
responsibility among the citizens to abide by them.

Penalty Old Amount New Amount


Penalty for offenses where no Rs 100 for first offense and Rs 500 for first time offense,
penalty is specifically Rs 300 for second/subequent Rs 1,500 for subsequent
provided offense offense

Violation of road regulations Rs 500 to Rs 1,000

Traveling without Ticket Rs 200 Rs 500


Disobedience of orders of Rs 500 Rs 2,000
Authority and refusal to share
information

Unauthorized use of vehicles Rs 1,000 Rs 5,000


without license

Driving without license Rs 500 Rs 5,000


Driving despite Rs 500 Rs 10,000
disqualification
Over-speeding Rs 400 Rs 1000 - Rs 2000 for light
motor vehicle, Rs 2,000 - Rs
4,000 for medium passenger

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or goods vehicles and
impounding of driving license
for second/subsequent
offence.

Dangerous Driving Imprisonment of 6 months to


1 year and/or fine of Rs.
1000- Rs. 5000 for first
offence and imprisonment up
to 2 years and/or fine up to
Rs. 10000 for second offence.

Drunken Driving Imprisonment up to 6 months


and/or fine up to Rs. 10000
for first offence and
imprisonment up to 2 years
and/or fine of Rs. 15000 for
second offence.

Driving when mentally or Rs 200 for first offense, Rs First offence - Rs. 1000 and
physically unfit to drive for 500 for second/subsequent second/subsequent offence -
offense Rs.2000

Offences relating to accident Imprisonment of up to 6


months and/or fine up to Rs.
5000 for first offence and
imprisonment up to 1 year
and/or fine up to Rs. 10000
for second offence.

Racing and speeding Imprisonment of up to 1


month and/or fine up to Rs.
500 for first offence and
imprisonment up to 1month
and/or fine up to Rs. 10000
for second offence.

Driving uninsured vehicle fine of Rs. 1000 and/or Rs. 2000 and/or
punishment up to 3 months imprisonment up to 3 months
for the first offence and fine

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of Rs. 4000 and/or
imprisonment up to 3 months
for the second offence.

Taking vehicle without lawful Rs 500 Rs. 5000


authority and seizing motor
vehicle by force

Causing obstruction to free Rs 50 Rs. 500


flow of traffic

Salient Feature of the Amendment

The important features of the Motor Vehicles (Amendment) Act, 2019 are as under-

The Motor Vehicle Act,1988, came into force on 1 July 1989, and the act amendment by the motor
vehicle (Amendment) Act, 2019. The Motor Vehicle Act, 2019 came into force on 1st September
2019. The Act comes up with details which are issued by the legislative provision by the
Government of India which includes drivers/conductor's license, registration of the motor vehicle,
control of the motor vehicle, special permission of state transport, traffic regulation, insurance of
the vehicle, etc.

Road and Environment Health

In case the vehicles are not fit to be used on roads as they cause environmental damage and hence
harm the health of others, they have to be returned to the manufacturers of the respective vehicles.
The manufacturers through this amendment are directed to take back these vehicles and have the
choice to either reimburse or replace the defective vehicle with one of similar make.

Road Safety

This Amendment vehemently propagates the increase in the penalty for traffic rule offenders. This
is done in the hope that this increased fine would force the drivers to be more alert and careful on
the roads. This amendment provides more stringent rules for offences like juvenile driving,

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drunken driving, over speeding, overloading and driving without a license. Stricter punishment for
those driving without helmets is also made in this Amendment.

Fitness of Vehicle

This Amendment has provisions mandating the automated testing of vehicles for doing a fitness
check. This would help improve road safety by removing from the traffic unfit vehicles. This
Amendment makes specific provision for those who deliberately violate environment and safety
regulations.

This Amendment promoted certification of automobiles after they were successfully tested. The
regulation of this process of certification was also proposed via this Act. In addition to this,
Amendment of 2019 aims at setting testing standards and bringing the agencies issuing automotive
approvals under the Motor Vehicles Act.

National Road Safety Board

Another major feature of this Act is the provision for setting up of a National Road Safety Board
under the central government. This board is supposed to advise governments of all the states in
addition to the central government on matters of traffic management and road safety.

Compensation For Victims of Road Accidents

Provisions have been made for cashless treatment of victims of road accidents, during the golden
hour. Golden hour is the time period up to one hour from the time of the accident. This is the time
period in which the chances of survival if proper treatment is given, are maximum. An effort to
make this whole process cashless is also made by this Act.

Protection of Good Samaritan

This Act defines a Samaritan as a person who stands up for helping out a road accident victim
immediately after such mishappening takes place. It is often seen that these generous people are
the ones who end up being the victim of harassment for their acts of kindness. This Amendment
provides for these people too. It ensures that they are not harmed in any manner whatsoever. It
also protects them from any kind of civil or criminal proceedings, even in cases where they
negligently cause the death of the victim.

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Compulsory Insurance

This Act instructs the union government to establish a Motor Vehicles Accident Fund providing
compulsory insurance to all drivers of India.

National Transportation Policy

This Act promotes the idea of the formation of a National Transportation Policy. This is to be made
by the Central government in collaboration with the governments of all the states. This policy
would structure a framework for road transport. In addition to this, priorities for the transport
system would be specified.

Training of drivers

This Amendment strengthens the process of driving training. This would lead to a faster issuance
of licenses. This Amendment comes in the wake of a shortage of commercial drivers in the country.
It propagates the opening up of more driver training institutes for ensuring the production of better
commercial drivers in India.

National Register for Driving licence and Vehicle Registration

This Amendment puts forth harmonization and integration of issuance of driving licence with
vehicle registration. This would be done by the creation of a National Register for Driving Licence
and National Register for Vehicles with the online portals of ‘Sarathi’ and ‘Vahan’. This process
would ensure the creation of a uniform system of licences and vehicle registration throughout the
country.

Online Driving Licences

This Act makes a provision for online issuance of learner’s license, mandating an online identity
verification. This would improve efficiency and limit to a large extent issuance of fake licenses.
In addition to increasing transparency, this Act also provides commercial licenses to be valid up
to a period of five years instead of three years. There would now be driver training schools for the
production of better drivers on roads.

Motor Vehicles Accident Fund

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A Motor Vehicles Fund would be constituted to provide compulsory insurance to all drivers on-
road by the central government. This fund would be set up to compensate victims of road accidents
and their legal heirs in case of their death.

Better Insurance Facilities

This Act states that there exists no cap on liability for insurers. In fact, drivers’ attendants are now
to be included in third party insurance. There would now be up to ten times increase in
compensation by insurance companies. Provisions have been made to ensure that if the victim’s
family agrees to compensation of five lakhs, the family gets it within a month. The process of
claiming compensation has also been simplified. The minimum compensation for hit and run cases
and cases where the grievous injury is caused has also been increased.

Issues

Some issues regarding the various provisions provided for under this Act have been raised, the
major ones are listed below-

With an already existing fund for hit and run cases, another fund, created by this Act for the same
purpose seems futile and unreasonable.

This Act is good in text and spirit, but its uniform implementation all over India is a very difficult
job.

It has also been brought to light that for ensuring that traffic rule offenders don’t go unpunished,
electronic surveillance is imperative. For example, the installation of CCTV cameras and other
related equipment. Naturally, this would require huge investments, regarding which the Act is
ambiguous.

Many states have raised the issue of curtailment of their autonomy at the behest of the central
government.

Also, it has been noted that this amendment provides for relief to victims. However, it is unclear
as to which specific offences would lead to that penalty. This may make the whole attempt of
providing relief futile.

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Also, there are insufficient vehicle- manufacturers for the successful implementation of safety
features.

Benefits

The main benefits of the amendment Acts are as follows-

E-Governance is the major highlight of this amendment. With this, it is no longer necessary to
have certain specified educational qualifications for acquiring transport licenses. This provides
online learning for licences and increases the driving license’s validity period.

The biggest benefit of this amendment for the ordinary man is the increase in compensation to
victims and their families and better and quicker insurance facilities.

Provisions have been made to improve the registration process of vehicles by making this process
more convenient with the use of ‘Sarathi’ and ‘Vahan’ platforms. Provisions have been made to
enable registration of vehicles at the end of the dealer. Also, temporary registrations have been
discouraged.

With stricter rules on the fitness of vehicles, the air pollution level in cities is expected to
significantly drop.

With digitalization and e-governance, the system is expected to be more efficient in its
undertaking, minimizing risks.

The Motor Vehicles (Amendment) Act of 2019 seeks to bring about changes in the Motor Vehicles
Act of 1988. This is in lieu of solving some major issues of road safety, third party insurance, etc.
Guidelines for cabs have also been issued, which would later be finalised. The digitalisation of
some related services like issuance of licences, change in address, issuance of receipts to ensure
better efficiency has been done. The state governments are to constantly monitor state highways,
national highways, and urban roads through electronic mode. Some major amendments are also
done in the compensation schemes and insurance provisions. All these have benefited the drivers
of India, although some have raised their concerns over the curbing of state autonomy.

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