Motor Vehicles (Amendment) Act, 2019

The Motor Vehicles Act, 1988 regulates almost all aspects of road transport vehicles. It has provisions for traffic regulations, vehicle insurance, registration of motor vehicles, controlling permits and penalties. The Act came into force from 1 July 1989. The amendments to the Motor Vehicle Act were passed by the Parliament in 2019.

Key Amendments

• Compensation for Road Accident Victims: The central government will develop a scheme for cashless treatment of road accident victims during golden hour and for providing interim relief to claimants seeking compensation under third party insurance.
• 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.
• Good Samaritans: The act 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, caused due to their negligence in providing assistance to the victim.
• Recall of Vehicles: The act 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.
• National Transportation Policy: The central government in consultation with state governments may develop a National Transportation Policy which will: (i) establish a planning framework for road transport, (ii) develop a framework for grant of permits, and (iii) specify priorities for the transport system, among other things.
• Road Safety Board: The act provides for a National Road Safety Board, to be created by the central government through a notification which will advise the central and state governments on all aspects of road safety and traffic management.
• Offences and Penalties: The act increases penalties for several offences under the Act.
• Taxi Aggregators: The act 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.