Rumour: Motor Vehicles (Amendment) Bill to be approved soon

According to a media report, the government is likely to approve the Motor Vehicles (Amendment) Bill soon. The bill has already been passed in the Lok Sabha and is pending in the Rajya Sabha.

It has been reported that the compensation for hit-and-run fatalities is likely to be increased from Rs. 25,000 to Rs. 2 lakh or more.

The minimum fine for drunk driving could be increased from Rs. 2,000 to Rs. 10,000 and for rash driving, the fine could go up from Rs. 1,000 to Rs. 5,000. Driving without a license could attract a minimum fine of Rs. 5,000. The fine for over-speeding could be between Rs. 1,000-2,000 and seat belt violation could attract a fine of Rs. 1,000. Using a mobile phone while driving could attract a fine of Rs. 5,000.

In case of traffic violations by minors, the guardian / owner of the vehicle would be held responsible, unless proved that the act was committed without their knowledge or they had tried to prevent it. The minors would be tried under the Juvenile Justice Act and the registration of the vehicle would be cancelled.

The bill could also bring into its purview various insurance agencies as well as taxi aggregators and create a fund to provide compulsory insurance cover to all road users. The new rules also seek to put the onus of accidents due to faulty design or construction and poor maintenance of roads on civic agencies, contractors and consultants.

The cap on 3rd-party liability is also expected to be removed. In 2016, the Bill put a cap on the maximum liability at Rs. 10 lakh for death and Rs. 5 lakh for serious injury. Additionally, the Act asks for vehicle recalls in case the components or engines do not meet the specified standards. Car manufacturers could also be fined Rs. 500 crore for sub-standard components or engines.

Source: Economic Times