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Tags Current Affairs

The Motor Vehicles (Amendment) Bill proposes huge increases in various penalties for traffic violations

Date: 02 August 2019 Tags: Bills & Laws

Context: The MVA Bill, 2019 is passed by both the houses of the parliament.


Major provisions:

  • The Bill seeks to amend the Motor Vehicles Act, 1988 to provide for road safety. 
  • 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 central government will develop a scheme for cashless treatment of road accident victims during golden hour. 
    • The Bill defines golden hour as the time period of up to one hour following a traumatic injury, during which the likelihood of preventing death through prompt medical care is the highest. 
    • The central government may also make a scheme for providing interim relief to claimants seeking compensation under third party insurance.
  • The Bill increases the minimum compensation for hit and run cases as follows:
    • (i) In case of death, from Rs 25,000 to two lakh rupees, and
    • (ii) In case of grievous injury, from Rs 12,500 to Rs 50,000.

Compulsory insurance:

    • The Bill requires the central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India
    • It will be utilised for:
      • (i) Treatment of persons injured in road accidents as per the golden hour scheme
      • (ii) Compensation to representatives of a person who died in a hit and run accident
      • (iii) Compensation to a person grievously hurt in a hit and run accident
      • (iv) Compensation to any other persons as prescribed by the central government. 

Good Samaritans:

    • The Bill defines a Good Samaritan as a person who renders emergency medical or non-medical assistance to a victim at the scene of an accident
    • The assistance must have been (i) in good faith, (ii) voluntary, and (iii) without the expectation of any reward. 
    • Such a person will not be liable for any civil or criminal action for any injury to or death of an accident victim, caused due to their negligence in providing assistance to the victim.

Road Safety Board:

    • The Bill 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 including:
      • (i) Standards of motor vehicles

      • (ii) Registration and licensing of vehicles

      • (iii) Standards for road safety, and (iv) promotion of new vehicle technology

Offences and penalties:

    • The Bill increases penalties for several offences under the Act.
    •  For example, the maximum penalty for driving under the influence of alcohol or drugs has been increased from Rs 2,000 to Rs 10,000.
    •  If a vehicle manufacturer fails to comply with motor vehicle standards, the penalty will be a fine of up to Rs 100 crore, or imprisonment of up to one year, or both.
    •  If a contractor fails to comply with road design standards, the penalty will be a fine of up to one lakh rupees. 
    • The central government may increase fines mentioned under the Act every year by up to 10%.

Taxi aggregators:

    • The Bill 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.
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