Motor Vehicles (Amendment) Act 2019

News: Motor Vehicles (Amendment) Act 2019 which amends the Motor Vehicles Act, 1988 has come into force from 1st September.


Key Salient Features of the Amendment Act:

  • Compulsory Insurance: The Act requires the central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India.
  • Compensation for Accident Victims: Increases the minimum compensation in case of death in hit and run cases from previous t Rs. 25,000 to Rs 2 lakh and in case of grievous injury from previous Rs.12500 to Rs 50000.
  • National Road Safety Board: Provides for a National Road Safety Board, to be created by the central government. The board will advise the central and state governments on all aspects of road safety and traffic management.
  • Registration of Vehicles: States that new vehicles should be registered at the dealer level and it will eventually remove buyers’ interface with registration authorities.
  • Treatment of road accident victims: Proposes that the central government should develop a scheme for cashless treatment of road accident victims during golden hour. It defines golden hour as the time period of up to one hour following a traumatic injury.
  • National Transportation Policy: Proposes a National Transportation Policy for ushering in guidelines on the transportation of goods and passengers. The Policy will envision
    • establishing a planning framework for road transport,
    • developing a framework for grant of permits, and
    • Specifying priorities for the transport system, among other things.
  • Taxi Aggregators: Calls for issuance of licenses to taxi aggregators by state. Further, they must comply with the Information Technology Act, 2000. It defines aggregators as digital intermediaries or market places which can be used by passengers to connect with a driver for transportation purposes (taxi services)
  • Recall of Vehicles: It allows the central government 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.
  • Good Samaritan: Good Samaritan (one who lends help to accident victim) 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
  • Penalties: Increases penalties for traffic violations