13 April 2017

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In Depth Motor Vehicle Bill 2016 Follow Rules or Pay Heavy Fines

In Depth Motor Vehicle Bill 2016 Follow Rules or Pay Heavy Fines

The Bill was presented in the Lok Sabha on April 7. As a signatory to the Brasilia Declaration, India has to reduce road accidents and traffic fatalities by 50 percent by 2020.
The Lok Sabha passed the Motor Vehicle (Amendment) Bill, 2016 on April 10, 2017
The Bill amends the Motor Vehicles Act, 1988

The bill will now go to the Rajya Sabha that is Upper House.
The proposed Bill with amendments is now in Upper House and once it gets the nod from the upper house, it shall reach the Hon’ble President for approval.

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 Bill proposes to maintain a National Register for Driving License and Vehicle Registration so that the process for obtaining these is the same nationwide. “Sarathi” and “Vahan” platforms will ensure uniformity of the process. So, the process of getting a Driving License from a rural authority will be the same as getting one from any metro city.

Improving delivery of services to the stakeholders using e-Governance is one of the major focuses of this Bill.  This includes 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.

Under the Act, the liability of the third-party insurer for motor vehicle accidents is unlimited.  The Bill caps the maximum liability for third party insurance in case of a motor accident at Rs 10 lakh in case of death and at five lakh rupees in case of grievous injury.

The Bill provides for a Motor Vehicle Accident Fund which would provide compulsory insurance cover to all road users in India for certain types of accidents.

The Bill caps the maximum liability for third party insurance, but does not cap the compensation amount that courts can award.  In cases where courts award compensation higher than the maximum liability amount, it is unclear who will pay the remaining amount.

Under the Act, compensation for hit-and-run victims comes from a Solatium Fund.  The Bill creates a new Motor Vehicle Accident Fund in addition. With a Fund already existing to provide compensation for hit-and-run accidents, the purpose of the new Accident Fund is unclear.

If a vehicle is registered in the parent’s name and a minor causes a fatal accident while driving it, the parent could go to jail for a maximum term of three years.

The Bill raises the penalties for various offences and proposes that the State Government can specify a multiplier, not less than one and not greater than ten, to be applied to each fine. So, the fine amount will vary from state to state. The Bill proposes fine for oversized vehicles, cab aggregators, not providing the way for emergency vehicles and offences for juveniles.

Only Problem with this act is Helmet, the law should make it mandatory for two-wheeler manufacturing companies to give 2 helmets free to the buyer, after that when he will be  in city he will decide on his own to use Helmet or Not on roads
Wearing Helmet on the Roads which are faulty and filled with Path Holes is injurious to health.
But once a helmet will be in hands of driver he will slowly start to use it whenever he will find the road is very good and he can drive his two-wheeler like a movie star wearing a helment.

Third Class Road = No Helmet
Airport Quality Road = Yes Helmet

Below is the Revised Penalty Chart -


Old Provision / Penalty
New Proposed Provision / Minimum Penalties
Rs 100
Rs 500
New 177A
Rules of road regulation violation
Rs 100
Rs 500
Travel without ticket
RS 200
Rs 500
Disobedience of orders of authorities
Rs 500
Rs 2000
Unauthorized use of vehicles without license
Rs 1000
Rs 5000
Driving without license
Rs 500
Rs 5000
Driving despite disqualification
Rs 500
Rs 10,000
182 B
Oversize vehicles
Rs 5000
Over speeding
Rs 400
Rs 1000 for LMV
Rs 2000 for Medium passenger vehicle
Dangerous driving penalty
Rs 1000
Upto Rs 5000
Drunken driving
Rs 2000
Rs 10,000
Speeding / Racing
Rs 500
Rs 5,000
192 A
Vehicle without permit
up to Rs 5000
Upto Rs 10,000
Aggregators (violation of licensing conditions)
Rs 25,000 to
Rs 1,00,000
Rs 2000 and
Rs 1000 per extra tonne
Rs 20,000 and
Rs 2000 per extra tonne
194 A
Overloading of passengers

Rs 1000 per extra passenger
194 B
Seat belt
Rs 100
Rs 1000
194 C
Overloading of two wheelers
Rs 100
Rs 2000, Disqualification for 3 months for licence (3 months disqualification for licence)
194 D
Rs 100
Rs 1000 Disqualification for 3 months for licence (3 months disqualification for licence)
194 E
Not providing way for emergency vehicles (Not giving way to emergency vehicles)
Rs 10,000
Driving Without Insurance
RS 1000
Rs 2000
Offences by Juveniles
Guardian / owner shall be deemed to be guilty. Rs 25,000 with 3 yrs. imprisonment. Juvenile to be tried under JJ Act. Registration of Motor Vehicle to be cancelled
Power of Officers to impound documents

Suspension of driving licenses u/s 183, 184, 185, 189, 190, 194C, 194D, 194E
210 B
Offences committed by enforcing authorities

Twice the penalty under the relevant section

Reality views by sm –

Thursday, April 13, 2017

Tags – Motor Vehicle Act 2016 Heavy Fine Punishments