Home Discover Journals Motor Vehicle Amendment Bill: A comprehensive explanation

Motor Vehicle Amendment Bill: A comprehensive explanation

By Finserv MARKETS - Sep 13,2019
Views Icon937 Views 0 0 Comments

Everything you need to know about MV Act

Indian roads are one of the most unsafe in the world. Every year, over 400 people lose their lives on Indian roads. Faulty engineering, corruption in granting driving license and violation of rules are some of the major reasons for the high fatality rate. The Motor Vehicles (Amendment) Bill 2019 is aimed at curbing road casualty, increasing road safety, weeding out corruption and reducing traffic violations.

The bill was passed by both the houses of the parliament in July. Once notified as law, it is expected to change the way goods and passengers are transported in the country. The bill primarily aims to permeate more road discipline by tightening rules and increasing penalties. This is not the first time the bill was introduced in the upper house of the parliament for its sanction. The amendment bill had been taken up by the government in its previous term and was passed by the Lok Sabha in 2017. While waiting to be passed by the Rajya Sabha, the bill had lapsed after the dissolution of the last Lok Sabha.

Everything you need to know about MV Act

Source: Indpaedia

The bill proposes comprehensive changes to the Motor Vehicles Act, 1988. Ranging from increased penalties for traffic violations, increased motor insurance coverage, to stricter conditions for issuance of a driving license, the bill proposes several crucial changes. For instance, we often hear the tragic news of underage drivers crashing into the divider or killing a passer-by. The law enforcement agencies often struggle with zeroing on the main culprit. To tackle this problematic issue, the bill puts the blame squarely on the parents or the vehicle owner. Here are the major changes proposed in the bill:


A lot of lives are lost due to delay in immediate treatment. People in the vicinity of the accident site sometimes refrain from helping the victims due to the fear of police harassment. To tackle these problems the bill proposes to develop a system for cashless treatment of road accident victims during the golden hour. It is the first hour after the accident and the chances to prevent death is highest in the period. The bill also ensures that citizens who come forward to help are not harassed by the police. The government has proposed to hike the minimum compensation in hit-and-run cases from Rs 25,000 to Rs 2 Lakhs, and from Rs 12,500 to Rs 50,000 in case of grievous injuries.


To improve the security of people travelling through roads, the new bill requires the government to set up a Motor Vehicle Accident Fund which will provide compulsory insurance cover to all the road users. The accident fund will be used for the treatment of road accident victims, compensation to relatives in case of demise by a road accident and compensation for people who have been grievously injured. Another major change is that the driver’s attendant has been included in the third-party motor vehicle insurance cover. The cap on liability of motor vehicle insurance providers has been removed. According to the proposals, in case of death, the vehicle owner or the motor vehicle insurance company will have to pay Rs 5 Lakhs as compensation as against Rs 50,000 currently. The changes will increase the importance of having motor vehicle insurance. There are two major types of motor insurance—third-party and comprehensive. Though having third-party insurance is compulsory, it is advisable to get a comprehensive insurance plan to have better protection. At Finserv MARKETS, you can buy Bajaj Allianz motor insurance online in five easy steps.

Everything you need to know about MV Act

Source: Hindi IndiaTV News

Hefty penalties

A major reason for traffic violations is the paltry fines imposed on violators. The scenario is likely to change drastically. The bill proposes to increase traffic fines exponentially. The fine for talking on a mobile phone and driving will be increased to Rs 5,000 from the current Rs 500. If caught drinking and driving, you could be fined Rs 10,000 from as against Rs 2,000 now. Some new penalties have also been added such as a fine of Rs 10,000 for not giving way to emergency services such as an ambulance. If a juvenile is involved in an accident, the guardian can be fined Rs 25,000 with a prison sentence of three years. Driving without motor vehicle insurance or invalid insurance can attract a penalty of Rs 2000, double the current fine. If your motor vehicle insurance has expired, you can renew your policy at Finserv MARKETS in the comfort of your home.


Besides several changes related to damages, accidents, insurance and penalties, the bill proposes to overhaul the system of granting a driver’s license. Driver’s license test will be computerised to reduce human interference and curb corruption. The proposed changes will give the central government the authority to make rules for the license-issuing body. The changes will not be effective if people fail to inculcate driving discipline and follow the law in letter and spirit.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522