Motor Vehicles Act

Motor Vehicles Act
Parliament of India
Long title The Motor Vehicles Act is an Act of the Parliament of India which regulates all aspects of road transport vehicles. The Act provides in detail the legislative provisions regarding licensing of drivers/conductors, registration of motor vehicles, control of motor vehicles through permits, special provisions relating to state transport undertakings, traffic regulation, insurance, liability, offences and penalties, etc
Citation	No 59 OF 1988
Territorial extent	Whole of India, including the State of Jammu and Kashmir
Enacted by	Parliament of India
Enacted	1988
Signed by	Ramaswamy Venkataraman
Commenced	1 July 1989
Status: In force

The Motor Vehicles Act is an Act of the Parliament of India which regulates all aspects of road transport vehicles. The Act provides in detail the legislative provisions regarding licensing of drivers/conductors, registration of motor vehicles, control of motor vehicles through permits, special provisions relating to state transport undertakings, traffic regulation, insurance, liability, offences and penalties, etc. For exercising the legislative provisions of the Act, the Government of India made the Central Motor Vehicles Rules 1989.

Statement of objects and Reasons

• The fast increasing number of both commercial vehicles and personal vehicles in the country.
• The need for encouraging adoption of higher technology in automotive sector.
• Concern for road safety standards, and pollution-control measures, standards for transportation of hazardous and explosive materials
• Need for effective ways of tracking down traffic offenders.
• Rationalization of certain definitions with additions of certain new definitions of new types of vehicles.
• Stricter procedures relating to grant of driving licences and the period of validity thereof.
• Laying down of standards for the components and parts of motor vehicles.
• Provision for issuing fitness certificates of vehicles also by the authorised testing stations.
• Enabling provision for updating the system of registration marks.
• Liberalised schemes for grant of stage carriage permits on nonnationalised routes, all-India Tourist permits and also national permits for goods carriages
• Maintenance of State registers for driving licences and vehicle registration.
• The Bill also seeks to provide for more deterrent punishment in the cases of certain offences

The Road Transport And Safety Bill Movement

The Road Transport and Safety Bill, 2014 envisioned providing a framework for safer, faster, cost-effective and inclusive movement of passengers and freight in India, thus enabling the mission of 'Make In India' following the death of the union minister Gopinath Munde in 2014.

The bill proposed to set up the Motor Vehicle Regulation & Road Safety Authority of India, an independent agency for vehicle regulation and road safety which would be legally empowered and accountable to Parliament.

Later due to controversies listed down in the controversies section, The bill was subsequently replaced by the Motor Vehicles (Amendment) Bill, 2017.

History and Amendments

Further information: Motor Vehicles Act, 1988

Indian Motor Vehicles Acts, from 1914-2016

The "Indian Motor Vehicles Act, 1914" was amended by the "Indian Motor Vehicles (Amendment) Act, 1920" (Act No. XXVII of 1920) passed by the Imperial Legislative Council. It received assent from the Governor General of India on 2 September 1920. The Act amended sections 11 and 18 of the 1914 Act.

The Act was amended again by the "Indian Motor Vehicles (Amendment) Act, 1924" (Act No. XV of 1924). The Act received assent from the Governor General on 18 September 1924. It had the title, "An Act further to amend the Indian Motor Vehicles Act, 1914, for certain purposes" and amended section 11 of the 1914 Act by inserting the words "and the duration for which" after the words "area in which" in clause (a) of subsection (2) of section 11. The motor vehicles act has again been amended in 1939, and replaced in 1988. The 1988 amendment was brought to address above mentioned statements of object and reasons.

Indian Motor Vehicles (Amendment) bill ,2017

This will be a significant upgrade to the motor vehicle laws. It envisages body cams on traffic cops and RTO officials to check corruption and 7-year imprisonment instead of current 2 years for drink-driving deaths, mandatory 3rd party insurance for all vehicles, and stiffer penalties for traffic violations to reduce the accident rates. The bill was passed by the Lok Sabha in April 2017 and sent to the Rajya Sabha, which referred it to a select committee in August 2017. The bill was again scrutinized by a joint standing committee composed of Transport ministers of 18 states of India.

Indian Motor Vehicles (Amendment) Act, 2019

This is similar to the Indian Motor Vehicles (Amendment) bill, 2017, although, introduced later in 2019 so the name. The earlier bill has lapsed at the end of the last session of 16th Lok Sabha. The bill was re-introduced in the first session of 17th Lok Sabha by union transport minister Nitin Gadkari which is then passed by both the houses before the end of the session.

Implementation of the Amended Law

As per the official notification issued by the central government on 28 August 2019, the 63 clauses of the Motor Vehicles (Amendment) Act,2019 to be implemented from 1 September 2019 as these clauses do not need any further modifications in the Central Motor Vehicles rules, 1989. These includes higher penalties for various traffic offences, national transportation policy among others.

Title in brief

The Motor Vehicles Act is an Act of the Parliament of India which regulates all aspects of road transport vehicles.

Provisions of the act

Licensing of drivers of motor vehicles

No person shall drive a motor vehicle in any public place unless he holds an effective driving licence issued to him authorising him to drive the vehicle.

Licensing of conductors or stage carriers

No person shall act as a conductor of a stage carriage unless he holds an effective conductor's licence issued to him authorising him to act as such conductor, and no person shall employ or permit any person who is not so licensed to act as a conductor of a stage carriage. A State Government may prescribe the conditions subject to which subsection shall not apply to a driver of a stage carriage performing the functions of a conductor or to a person employed to act a conductor for a period not exceeding one month.

Registration of Motor Vehicles

No person shall drive any motor vehicle and no owner of a motor vehicle shall cause or permit the vehicle to be driven in any public place or in any other place unless the vehicle is registered to a registering authority.

Certificate of fitness for Transport Vehicles

A transport vehicle shall not be deemed to be validly registered unless it carries a certificate of fitness in such form containing such particulars and information as may be prescribed by the Central Government, issued by the prescribed authority, or by an authorized testing station.

Control of Transport Vehicles through permits

Stating no motor vehicle shall be used as a transport vehicle in any public place whether or not such vehicle is actually carrying any passengers or goods in accordance with the conditions of a permit granted or countersigned by a Regional or State Transport Authority or any prescribed authority authorising him the use of the vehicle in that place in the manner in which the vehicle is being used.

Construction, Equipment and Maintainace of Motor Vehicles

Every motor vehicle shall be so constructed and so maintained as to be at all times under the effective control of the person driving the vehicle. Every motor vehicle shall be so constructed as to have right hand steering control unless it is equipped with a mechanical or electrical signalling device of a prescribed nature. the act gives power to central and state governments to make rules in this regard.

Control of Traffic

The act mentions vehicular traffic control by ensuring following issues

Limits of Speed

No person shall drive a motor vehicle of cause or allow a motor vehicle to be driven in any public place at a speed exceeding the maximum speed or below the minimum speed fixed for the vehicle under this Act or by or under any other law for the time being in force.

Limits of weight and limitations on use

The State Government may prescribe the conditions for the issue of permits for by the State or Regional Transport Authorities and may prohibit or restrict the use of such vehicles in any area or route. Except as may be otherwise prescribed, no person shall drive or cause or allow to be driven in any public place any motor vehicle which is not fitted with pneumatic types. No person shall drive or cause or allow to be driven in any public place any motor vehicle or trailer – The unladen weight of which exceeds the unladen weight specified in the certificate of registration of the vehicle or the laden weight of which exceeds the gross vehicle weight specified in the certificate or registration. also mentioned about parking places and haulting stations for motor vehicles to be determined by the state governments in consutations with local bodies having jurisdiction in the area concerned.

Duty to obey traffic signs

Every driver of a motor vehicle shall drive the vehicle in conformity with any indication given by mandatory traffic sign and in conformity with the driving regulations made by the Central Government, and shall comply with all directions given to him by any police officer for the time being engaged in the regulation of traffic in any public place.

Duty of owner of motor vehicle to give information

The owner of a motor vehicle, the driver or conductor of which is accused of any offence under this Act shall, on the demand of any police officer authorised in this behalf by the State Government, give all information regarding the name and address of, and the licence held by, the driver or conductor which is in his possession or could by reasonable attention be ascertained by him.

Wearing of protective headgear

Every person driving or riding (otherwise than in a side car, on a motor cycle of any class or description) shall, while in a public place, wear protective headgear conforming to the standards of Bureau of Indian Standards provided that the provisions of this section shall not apply to a person who is a Sikh, if he is, while driving or riding on the motor cycle, in a public place, wearing a turban  : provided further that the State Government may, by such rules, provide for such exceptions as it may think fit. The Motor Vehicles Amendment Act, 2019 states that children above 4 years should wear a protective headgear.

Safety measures for drivers and pillion riders

No driver of a two – wheeled motor cycle shall carry more than one person in addition to himself on the motor cycle and no such person shall be carried otherwise than sitting on a proper seat securely fixed to the motor cycle behind the driver's seat with appropriate safety measures.

Duty to produce licence and certificate of registration

The driver of a motor vehicle in any public place shall, on demand by any police officer in uniform, produce his licence for examination.

Duty of driver in case of accident and injury to a person

When any person is injured or any property of a third party is damaged, as a result of an accident in which a motor vehicle is involved, the driver of the vehicle or other person in charge of the vehicle shall –

(a) unless it is not practicable to do so on account of mob fury or any other reason beyond his control, take all reasonable steps to secure medical attention for the injured person, by conveying him to the nearest medical practitioner or hospital, and it shall be the duty of every registered medical practitioner or the doctor on the duty in the hospital immediately to attend to the injured person and render medical aid or treatment without waiting for any procedural formalities, unless the injured person or his guardian, in case he is a minor, desired otherwise;

(b) give on demand by a police officer any information required by him or, if no police officer is present, report the circumstances of the occurrence, including the circumstances, if any, or not taking reasonable steps to secure medical attention as required under clause (a), at the nearest police station as soon as possible, and in any case within twenty-four hours of the occurrence.

(c) give the following information in writing to the insurer, who has Substituted by for and if necessary, convey him to the nearest hospital. Issued the certificates of insurance, about the occurrence of the accident, namely :-

• insurance policy number and period of its validity
• date, time and place of accident
• particulars of the persons injured or killed in the accident
• name of the driver and the particulars of his driving licence.

Insurance under Motor Vehicles (MV) Act

Important Definitions

(a) “authorised insurer" means an insurer for the time being carrying on general insurance business in India and granted a certificate of registration by the Insurance Regulatory and Development Authority of India.

(b) “certificate of insurance” means a certificate issued by an authorised insurer.

(c) “third party” includes the Government, the driver and any other co-worker on a transport vehicle.

(d) “grievous hurt” shall have the same meaning as assigned to it in section 320 of the Indian Penal Code.

(e) “hit and run motor accident” means an accident arising out of the use of a motor vehicle or motor vehicles the identity whereof cannot be ascertained in spite of reasonable efforts for the purpose

Necessity for insurance against third party risks

No person shall use, except as a passenger, or cause or allow any other person to use, a motor vehicle in a public place, unless there is in force, in relation to the use of the vehicle by that person or that other person, as the case may be, a policy of insurance complying with the requirements of (The provisions this section shall not apply to any vehicle owned by the Central Government or a State Government) -:

1. Provided that in the case of a vehicle carrying, or meant to carry, dangerous or hazardous goods, there shall also be a policy of insurance under the Public Liability Insurance Act,1991.
2. The appropriate Government may, by order, exempt from the operation of sub-section (1), any vehicle owned by any of the following authorities, namely:— (a) the Central Government or a State Government, if the vehicle is used for purposes connected with any commercial enterprise; (b) any local authority; (c) any State Transport Undertaking

Requirement of policies and limits of liability

1. In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which—
   1. is issued by a person who is an authorised insurer; and
   2. insures the person or classes of persons specified in the policy in sub-section 2 above- (i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person including owner of the goods or his authorised representative carried in the motor vehicle or damage to any property of a third party caused by or arising out of the use of the motor vehicle in a public place; (ii) against the death of or bodily injury to any passenger of a transport vehicle, except gratuitous passengers of a goods vehicle, caused by or arising out of the use of the motor vehicle in a public place.

Clarification -: The death of or bodily injury to any person or damage to any property of a third party shall be deemed to have been caused by or to have arisen out of, the use of a vehicle in a public place. notwithstanding anything if a person who is dead or injured or the property which is damaged was not in a public place at the time of the accident.

3. Notwithstanding anything contained under any other law for the time being in force, for the purposes of third party insurance related to either death of a person or grievous hurt to a person, the Central Government shall prescribe a base premium and the liability of an insurer in relation to such premium for an insurance policy in consultation with the Insurance Regulatory and Development Authority.

4. A policy shall be of no effect for the purposes of this Chapter unless and until there is issued by the insurer in favour of the person by whom the policy is effected, a certificate of insurance in the prescribed form and containing the prescribed particulars of any condition subject to which the policy is issued and of any other prescribed.

5. A note in insurances issued before commencement of the Motor Vehicles (Amendment) Act, 2019, a policy of Insurance issued before the commencement of the Motor Vehicles (Amendment) Act, 2019 shall be continued on the existing terms under the contract and the provisions of Motor Vehicles (Amendment) Act, 2019 shall apply.

6. About Cover Note validity period -: Where a cover note issued by the insurer, the insurer shall, within seven days of the expiry of the period of the validity of the cover note, notify the fact to the registering authority or to such other authority as the State Government may prescribe.

Settlement by insurance company and procedure therefor

1. The insurance company shall, upon receiving information of the accident, either from claimant or through accident information report or otherwise, designate an officer to settle the claims relating to such accident.
2. An officer designated by the insurance company for processing the settlement of claim of compensation may make an offer to the claimant for settlement before the Claims Tribunal giving such details, within thirty days and after following such procedure as may be prescribed by the Central Government.
3. If, the claimant to whom the offer is made under sub-section (2)(Above line), —

(a) accepts such offer,—

(i) the Claims Tribunal shall make a record of such settlement, and such claim shall be deemed to be settled by consent; and

(ii) the payment shall be made by the insurance company within a maximum period of thirty days from the date of receipt of such record of settlement;

(b) rejects such offer, a date of hearing shall be fixed by the Claims Tribunal to adjudicate such claim on merits.

Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks.

1. If, after a certificate of insurance has been issued under sub-section (3) of section 147 of MV (Amendment) Act, 2019; in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under clause (b) of sub-section (1) of section 147 (being a liability covered by the terms of the policy) or under the provisions of section 164 is obtained against any person insured by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefit of the award any sum not exceeding the sum assured payable thereunder as if that person were the decree holder, in respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments.
2. No sum shall be payable by an insurer under sub-section (1) (Point no. 1. in this section) in respect of any judgment or award unless, before the commencement of the proceedings in which the judgment or award is given the insurer had notice through the court or, as the case may be, the Claims Tribunal of the bringing of the proceedings, or in respect of such judgment or award so long as its execution is stayed pending an appeal; and an insurer to whom notice of the bringing of any such proceedings is so given shall be entitled to be made a party thereto, and to defend the action on any of the following grounds, namely

(a) that there has been a breach of a specified condition of the policy, being one of the following conditions, namely:––

(i) a condition excluding the use of the vehicle—

(A) for hire or reward, where the vehicle is on the date of the contract of insurance a vehicle not covered by a permit to ply for hire or reward; or

(B) for organised racing and speed testing; or

(C) for a purpose not allowed by the permit under which the

vehicle is used, where the vehicle is a transport vehicle; or

(D) without side-car being attached where the vehicle is a two-wheeled vehicle; or

(ii) a condition excluding driving by a named person or by any person who is not duly licensed or by any person who has been disqualified for holding or obtaining a driving licence during the period of disqualification or driving under the influence of alcohol or drugs as laid down in section 185; or

(iii) a condition excluding liability for injury caused or contributed to by conditions of war, civil war, riot or civil commotion; or

(b) that the policy is void on the ground that it was obtained by nondisclosure of any material fact or by representation of any fact which was false in some material particular; or

(c) that there is non-receipt of premium as required under section 64VB of the Insurance Act, 1938.

3. If on the date of filing of any claim, the claimant is not aware of the insurance company with which the vehicle had been insured, it shall be the duty of the owner of the vehicle to furnish to the tribunal or court the information as to whether the vehicle had been insured on the date of the accident, and if so, the name of the insurance company with which it is insured.

Settlement between insurers and insured persons

No settlement made by an insurer in respect of any claim which might be made by a third party in respect of any liability of the nature referred to in clause (b) of sub-section (1) of section 147 of MV (Amendment) Act, 2019 shall be valid unless such third party is a party to the settlement.

Compensations under MV act

Liability to pay compensation in certain cases on the principle of no fault

Where death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicles shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation of INR fifty thousand and the amount of compensation payable under that sub-section in respect of the permanent disablement of any person shall be a fixed sum of INR twenty – five thousand.

MV (Amendment) Act, 2019 insertions -:

1. For deaths in hit-and-run cases, the government will provide a compensation of Rs 2 lakh or more to the victim's family.
2. Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or grievous hurt due to any accident arising out of the use of motor vehicle, a compensation, of a sum of five lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt to the legal heirs or the victim, as the case may be.
3. Compensations in other laws and reduction -: Where, in respect of death or grievous hurt due to an accident arising out of the use of motor vehicle, compensation has been paid under any other law for the time being in force, such amount of compensation shall be reduced from the amount of compensation payable under this section.

Salient features of Motor Vehicles (Amendment) Act, 2019

Motor Vehicle Accident Fund

A Motor Vehicle Accident Fund will provide compulsory insurance cover to all road users in India for certain types of accidents including

• Treatment of the persons injured in road accidents following the scheme framed by the Central Government (TBA).
• Compensation to representatives of a person who died in a hit and run motor accident.
• Compensation to such persons as may be prescribed by the Central Government.

Electronic monitoring and enforcement of road safety

This act mandates state governments to ensure the use of technology to detect traffic violations on national highways, state highways and urban roads which includes speed cameras, closed-circuit television cameras, speed guns, body wearable cameras and such other technology; having population up to such limits as may be prescribed by the Central Government. Also, this act specifies electronic fitness testing of vehicles.

Changes in Driver's licence testing

Obtaining a driver's licence (DL) could get tougher. The process of obtaining a licence will become technology- driven, reducing human interface to curb corruption. Currently, licence testing is manual, which means untrained people are also able to procure a licence.

National Register of DL

The Central Government shall maintain a National Register of Driving Licences which assigns a unique driver's license number without which no driver's license shall be issued, or renewed. At the state level, a State Register of Driver's Licences shall be maintained by each state government. It will make the transfer of vehicles across states easy using the online system. Integration vehicle database all over India so that anyone who is transferred from one state to another state frequently gets the benefit of same.

Use of Aadhar

This act states that Aadhar shall be mandatory for obtaining a DL and to register a vehicle.

Traffic Violations by Juveniles

In this regard, the guardians or owner of the vehicle would be held responsible unless they prove the offence was committed without their knowledge or they tried to prevent it.The registration of the motor vehicle in question will be cancelled. The juvenile will be tried under the Juvenile Justice Act.

Online Learning License

As stated in this act, a licencing authority may issue a learner's licence in electronic form and such manner as may be prescribed by the Central Government. (TBA)

National Transportation Policy

Creation of National Road Transport policy in concurrence with the State Governments to

• Establish a planning framework for passengers and goods transportation within which transport bodies are to operate.
• establish a medium and long term planning framework for all forms of road transport, identify areas for the development of transport improvement infrastructure across India in consultation with the authorities and agencies related to ports, railways and aviation as well as with local and state-level planning, landholding and regulatory authorities for the delivery of an integrated multimodal transport system.
• establish the framework of a grant of permits and schemes.
• establish strategic policy for transport by road and its role as a link to other means of transport.
• identify strategic policies and specify priorities for the transport system that address current and future challenges.
• provide medium to long-term strategic directions, priorities and actions.
• promote competition, innovation, increase in capacity, seamless mobility and greater efficiency in the transport of goods or livestock or passengers, and economical use of resources.
• safeguard the interest of the public and promote equity, while seeking to enhance private participation and public-private partnership in the transport sector.

Multimodal Facilitation

This act empowers Central Government to make schemes for national, multimodal and inter-State transport of passengers and goods.

Offences and Penalties

Penalties for various traffic violations have been increased ten-fold including jail terms. A driver's refresher training course required to get back your suspended DL. Powers given to state governments to increase fines up to ten times more than specified by the Central government. This act specifies an automatic increase in fines not more than 10% annually.

Good Samaritans

The bill has provision for the protection of Good Samaritans. Those who come forward to help accident victims will be protected from civil or criminal liability. It will be optional for them to disclose their identity to the police or medical personnel.

Vehicles Recall

The government can recall vehicles whose components or engine do not meet the required standards or shown to be damaging the environment.

Punishment for offences relating to construction, maintenance, sale and alteration of motor vehicles and components.

1. Whoever, being a manufacturer, importer or dealer of motor vehicles, sells or delivers or alters or offers to sell or deliver or alter, a motor vehicle that is in contravention of the provisions of Chapter VII of MV Act, 1988 or the rules and regulations made thereunder, shall be punishable with imprisonment for a term which may extend to one year, or with fine of one lakh rupees per such motor vehicle or with both
2. Provided that no person shall be convicted under this section if he proves that, at the time of sale or delivery or alteration or offer of sale or delivery or alteration of such motor vehicle, he had disclosed to the other party the manner in which such motor vehicle was in contravention of the provisions of Chapter VII or the rules and regulations made thereunder.
3. Whoever, being a manufacturer of motor vehicles, fails to comply with the provisions of Chapter VII or the rules and regulations made thereunder, shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to one hundred crore rupees or with both.
4. Whoever, sells or offers to sell, or permits the sale of any component of a motor vehicle which has been notified as a critical safety component by the Central Government and which does not comply with Chapter VII or the rules and regulations made thereunder shall be punishable with imprisonment for a term which may extend to one year or with fine of one lakh rupees per such component or with both.
5. Whoever, being the owner of a motor vehicle, alters a motor vehicle, including by way of retrofitting of motor vehicle parts, in a manner not permitted under the Act or the rules and regulations made thereunder shall be punishable with imprisonment for a term which may extend to six months, or with fine of five thousand rupees per such alteration or with both.

National Road Safety Board

The Bill provides for a National Road Safety Board, to be created by the central government through a notification. The Board will advise the central and state governments on all aspects of road safety and traffic management including: (i) standards of motor vehicles, (ii) registration and licensing of vehicles, (iii) standards for road safety, and (iv) promotion of new vehicle technology.

Taxi aggregators

The Bill defines aggregators as digital intermediaries or market places which can be used by passengers to connect with a driver for transportation purposes (taxi services). These aggregators will be issued licenses by state. Further, they must comply with the Information Technology Act, 2000.

Other Features

• Enforcing authorities, if caught violating traffic rules shall have to pay double the fine prescribed by this act.
• It will be mandatory to alter vehicles to make them suitable for specially-abled people.
• Contractors, consultants and civic agencies will be accountable for faulty design, construction or poor maintenance of roads leading to accidents.
• The minimum education qualification requirement for obtaining a DL is now removed.

Controversies

Tamil Nadu Government opposed the Road Transport and Safety Bill and asked centre to redraft it as bill encroaches upon the financial, legislative and administrative powers of state governments. A nationwide strike was called by various transport unions on 30 April 2015 to protest against the bill.

West Bengal's transport ministry informed the state assembly on 27 August 2019 that the amended Motor Vehicles act will not be implemented in West Bengal since the state government is against the hefty fines proposed in the act.