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The Motor Vehicles Amendment Bill, 2016

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The Motor Vehicles Amendment Bill, 2016 MEMBERS' REFERENCE SERVICE LARRDIS LOK SABHA SECRETARIAT, NEW DELHI LEGISLATIVE NOTE No.09/LN/Ref./November/2016 For the use of Members of Parliament NOT FOR PUBLICATION1 THE MOTOR VEHICLES (AMENDMENT) BILL, 2016 Prepared by Shri Naushad Alam, Additional Director (23034299) and Smt. Shalima Sharma, R.O. of Lok Sabha Secretariat under the supervision of Smt. Kalpana Sharma, Joint Secretary and Smt. Anita Khanna, Director. The reference material is for personal use of the Members in the discharge of their Parliamentary duties, and is not for publication. This Service is not to be quoted as the source of information as it is based on the sources indicated at the end/in the text. This Service does not accept any responsibility for the accuracy or veracity of the information or views contained in the note/collection. THE MOTOR VEHICLES (AMENDMENT) BILL, 2016 The proposed Motor Vehicles (Amendment) Bill, 20161 seeks to address the issues relating to road safety, citizen facilitation, strengthening public transport, automation and computerization. India reports around 5 lakh road accidents every year, out of which 1.5 lakh are fatal accidents. The Government of India has set a target to reduce the accidents and fatalities by 50% by the year 2020. To achieve this target, the Ministry of Road Transport and Highways (MoRTH) constituted a Group of Transport Ministers (GoM) of the States consisting of 19 Transport Ministers of the States and recommended to amend existing Motor Vehicles Act, 19882. Salient Features of the Bill, inter alia, provides for the following, namely:— (a) to facilitate grant of online learning license; (b) to replace the existing provisions of insurance with simplified provisions in order to provide expeditious help to accident victims and their families; (c) to increase the time limit for renewal of driving license from one month to six months before and after the expiry date; (d) to increase the period for renewal of transport license from three years to five years; 1 The Motor Vehicles (Amendment), Bill, 2016 was introduced in Lok Sabha on 9 August 2016. The Bill has been referred to the Department-related Parliamentary Standing Committee on Transport, Tourism and Culture for examination and report. The Committee is expected to submit its report by 16 December 2016. 2 The Motor Vehicles Act, 1988(Act No. 59 of 1988) was enacted to consolidate and amend the laws relating to motor vehicles. The first enactment relating to motor vehicles in India was the Indian Motor Vehicles Act, 1914, which was subsequently replaced by the Motor Vehicles Act, 1939. The Act of 1939 was amended several times. A working group was constituted in January 1984 to review the said Act. Based on its recommendations and discussions with the States, the Motor Vehicles Bill was introduced in the Rajya Sabha on 21 February 1986 and after been passed by both the Houses and assented by the President of India, came into force as the Motor Vehicles Act, 1988. 2 (e) to enable the licensing authority to grant license even to the differently abled persons; (f) to enable the States to promote public transport, rural transport and last mile connectivity by relaxing any of the provisions of the Act pertaining to permits; (g) to increase the fines and penalties for violation of provisions of the Act; and (h) to make a provision for protection of good samaritans Highlights of the Bill Changes in Parent Law: In the present Motor Vehicles Act, 1988 there are 223 sections out of which this bill aims to amend 68 sections whereas chapter 103 has been deleted and a chapter 114 is being replaced with new provisions to simplify third party insurance claims and settlement process. National Transportation Policy: The Bill requires the Central Government to develop a National Transportation Policy, in consultation with the states. The Policy will: (i) establish a planning framework for road transport, (ii) develop a framework for grant of permits and schemes, and (iii) identify and specify priorities for the road transport system. Compulsory Insurance: The Bill requires the Central Government to constitute a Motor Vehicle Accident Fund. The Fund will provide compulsory insurance cover to all road users in India. The Fund will be credited with: (i) a cess or tax as approved by the Central Government, (ii) a grant or loan made by the Central Government, or (iii) any other source as prescribed the Central Government. It will be managed by an authority specified by the Central Government. 3 Chapter 10 of the Act 1988 pertains to the Liability Without Fault in certain cases. 4 Chapter 11 of the Act 1988 was related to the Insurance of Motor Vehicles against Third Party Risks. 3 Care 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 an hour following a traumatic injury, during which the likelihood of preventing death through prompt medical care is the highest. The Bill also increases the compensation for death in a hit and run case from Rs 25,000 to Rs two lakh or more, as prescribed by the Central Government. Protection of 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. The Central Government may, through rules, provide for procedures related to their questioning or disclosure of personal information. e-Governance: 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 aways with the requirements of educational qualifications for transport licenses are some of the features. Offences by Juveniles: The Bill also recognizes offences committed by juveniles. In such cases the guardian of the juvenile or owner of the motor vehicle will be liable unless they prove that: (i) the offence was committed without their knowledge, or (ii) they exercised all due diligence to prevent 4 commission of the offence. The Bill increases the penalties5 for several offences under the Act. Transportation Schemes: The Bill requires State Governments to make transportation schemes that provide for certain objectives. These may include: (i) last mile connectivity, (ii) reducing traffic congestion, and (iii) safety of road users. The State may also make rules for regulating activities in public places, and non-motorized transport (bicycles, cycle rickshaws). Vahan & Sarathi Platforms: The Bill proposes to create National Register for Driving License and National Register for Vehicle registration through "Vahan" & "Sarathi" platforms. This will facilitate uniformity of the process across the country. 5 The proposed amendments in various Penalties are given in the Annexure. Annexure Proposed amendments in various Penalties are given in the following table:- Section Old Provision / New Proposed Provision / Penalty Minimum Penalties 177 General Rs 100 Rs 500 New 177A Rules of road regulation Rs 100 Rs 500 violation 178 Travel without ticket RS 200 Rs 500 179 Disobedience of orders of Rs 500 Rs 2000 authorities 180 Unautorized use of vehicles Rs 1000 Rs 5000 without licence 181 Driving without licence Rs 500 Rs 5000 182 Driving despite Rs 500 Rs 10,000 disqualification 182 B Oversize vehicles New Rs 5000 183 Over speeding Rs 400 Rs 1000 for LMV Rs 2000 for Medium passenger vehicle 184 Dangerous driving penalty Rs 1000 Upto Rs 5000 185 Drunken driving Rs 2000 Rs 10,000 189 Speeding / Racing Rs 500 Rs 5,000 192 A Vehicle without permit upto Rs 5000 Upto Rs 10,000 193 Aggregators (violations New Rs 25,000 to of licencing conditions) Rs 1,00,000 194 Overloading Rs 2000 and Rs 20,000 and Rs 1000 per extra Rs 2000 per extra tonne tonne 194 A Overloading of passengers Rs 1000 per extra passenger 194 B Seat belt Rs 100 Rs 1000 194 C Overloading of two Rs 100 Rs 2000, Disqualification for 3 wheelers months for licence 194 D Helmets Rs 100 Rs 1000 Disqualification for 3 months for licence 194 E Not providing way for New Rs 10,000 emergency vehicles 196 Driving Without Insurance RS 1000 Rs 2000 199 Offences by Juveniles New Guardian / owner shall be deemed to be guilty. Rs 25,000 with 3 years imprisonment. For Juvenile to be tried under Juvenile Justice Act. Registration of Motor Vehicle to be cancelled 206 Power of Officers to Suspension of driving licenses u/s impound documents 183, 184, 185, 189, 190, 194C, 194D,194E 210 B Offences committed by Twice the penalty under the relevant enforcing authorities section .
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