The Union Cabinet chaired by Prime
Minister Narendra Modi has given its approval for Motor Vehicle (Amendment)
Bill 2016. 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.
In the present Motor Vehicle
Act, there are 223 Sections out of which the Bill aims to amend 68 sections
whereas Chapters 10 has been deleted and a Chapter 11 is being replaced with
new provisions to simplify third party insurance claims and settlement process.
The important provisions
include increase in compensation for Hit & Run cases from Rs. 25000 to Rs.
2 lakhs. It also has provision for payment of compensation upto Rs 10 lakh in
road accidents fatalities.
The Bill also proposes
insertion of 28 new sections. The Bill proposes to improve the transport
scenario in the country by permitting the States to grant exemptions in Stage
carriage and contract carriage permits for promoting rural transport, public
transport, last mile connectivity and for passenger convenience and road
The Bill proposes that the
State Government can 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.
The bill proposes that the
State Government can regulate the activities in a public place of pedestrians
and such means of transport.
Improving delivery of services
to the stakeholders using e-Governance is one of the major focuses of this
Bill. This include enabling online
learning licenses, increasing validity period for driving licenses, doing away with the requirements of
educational qualifications for transport
licenses are some of the features.
The Bill proposes offences
committed by Juveniles. The Guardian /
owner shall be deemed to be guilty in cases of offences by the Juveniles and
Juvenile to be tried under JJ Act. Registration of Motor Vehicle to be
To improve the registration
process for new vehicles, registration at the end of the dealer is being
enabled and restrictions have been imposed on temporary registration.
In the area of road safety,
bill proposes to increase penalties to act as deterrent against traffic
violations. Stricter provisions are
being proposed in respect of offences like juvenile driving, drunken driving, driving
without licence, dangerous driving, over-speeding, overloading etc. Stricter provisions for helmets have been
introduced along with provisions for electronic detection of violations. To help the road accident victims, Good
Samaritan guidelines have been incorporated in the Bill. The Bill also proposes to mandate the
automated fitness testing for the transport vehicles with effect from 1st
October 2018. This would reduce
corruption in the Transport Department while improving the road worthiness of
the vehicle. The penalties are also
proposed for deliberate violation of safety/environmental regulations as well
as body builders and spare part suppliers.
To bring harmony of the
registration and licensing process, it is proposed to create National Register
for Driving Licence and National Register for Vehicle registration through
“Vahan” & “Sarathi” platforms. This will facilitate uniformity of the process
across the country.
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.