Motor Vehicles (Amendment) Bill, 2019

The Union Minister for Road Transport and Highways has introduced the Motor Vehicles (Amendment) Bill, 2019 in Lok Sabha.

Features of the Bill

The bill seeks to amend the Motor Vehicles Act, 1988 which provides for the 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 would be developing a scheme for cashless treatment of road accident victims during the golden hour.  The golden hour is defined in the bill 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 seeks to increase 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.

Motor Vehicle Accident Fund

The Bill requires the central government to establish a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India. The Motor Vehicle Accident Fund will be used for:

• Treatment of persons injured in road accidents as per the golden hour scheme.
• Compensation to representatives of a person who died in a hit and run accident.
• Compensation to a person grievously hurt in a hit and run accident.
• Compensation to any other persons as prescribed by the central government.

This Fund will be credited through

• Payment of a nature notified by the central government.
• Grant or loan made by the central government.
• Balance of the Solatium Fund (existing fund under the Act to provide compensation for hit and run accidents), or
• Any other source as prescribed the central government.

Good Samaritans

• The Bill states that a good samaritan 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.
• It defines as good samaritan 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.

Recall of vehicles

The Bill empowers the central government with the authority to order for recall of motor vehicles if a defect in the vehicle may cause damage to the environment, or the driver, or other road users.  The manufacturer of the recalled vehicle will be required to:

• Reimburse the buyers for the full cost of the vehicle, or
• Replace the defective vehicle with another vehicle with similar or better specifications.

National Transportation Policy

The central government may develop a National Transportation Policy, in consultation with state governments.  The Policy would be aimed at:

• Establishing a planning framework for road transport.
• Developing a framework for the grant of permits.
• Specify priorities for the transport system, among other things.

 Road Safety Board

The Bill provides setting up of National Road Safety Board to advise the central and state governments on all aspects of road safety and traffic management including:

• Standards of motor vehicles.
• Registration and licensing of vehicles.
• Standards for road safety.
• 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 Taxi 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 and they must comply with the Information Technology Act, 2000.