Lok Sabha passes the Motor Vehicles (Amendment) Bill, 2016

The Lok Sabha on 10 April 2017 passed a draft legislation to amend the Motor Vehicles Act to impose stiffer penalties on traffic rules violations and to protect the Good Samaritans from legal harassment.

The changes in the Motor Vehicles (Amendment) Bill, 2016, were approved by the Union Cabinet on 31 March 2017.

About Motor Vehicles (Amendment) Bill, 2016

• The Bill amends the Motor Vehicles Act, 1988 to address issues such as third party insurance, regulation of taxi aggregators and road safety.

• Under the Act, the liability of the third party insurer for motor vehicle accidents is unlimited. The amendment 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.  However, the Bill does not cap the compensation amount that courts can award.

• 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.

• It defines taxi aggregators, guidelines for which will be determined by the Union Government.

• The Bill also provides for: (i) amending the existing categories of driver licensing, (ii) recall of vehicles in case of defects, (iii) protection of good samaritans from any civil or criminal action, and (iv) increase of penalties for several offences under the 1988 Act.