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Legislative Corner

Rajya Sabha Passes Motor Vehicles Amendment Bill 2019 With Two Amendments

By LawStreet News Network      01 August, 2019 05:08 PM      0 Comments
Rajya Sabha Passes Motor Vehicles Amendment Bill 2019 With Two Amendments

The Rajya Sabha on July 30, 2019, passed the Motor Vehicles (Amendment) Bill, 2019, with two amendments.

Deputy Chairman of the Rajya Sabha Harivansh Narayan Singh declared the Bill as passed based on 108 'yes' votes as against 13 'no' votes.

Accepting the suggestions made by AIADMK in the upper house, Union Minister for Road Transport and Highways Nitin Gadkari introduced amendments in the Bill to change the word "consult" in the proposed Section 88A to "concurrence". The other amendment was to change the word "may" in the proposed Section 67 to "can" with respect to the State Government's power to issue directions to State Transport Authority and Regional Transport Authorities.

Both the proposed amendments were passed by the House. This means that the Central Government schemes formulated by Central Government for national, multi modal and inter-state transport for goods and passengers can be implemented only on the basis of "concurrence" of State Government instead of "consultation" with State Government.

The Lok Sabha had cleared the Bill on July 23, 2019. But now the Bill in the amended form will go back to Lok Sabha for its approval.

The notable changes proposed by the Bill are as follows.

  • Compensation for road accident victims:The central government will develop a scheme for cashless treatment of road accident victims during golden hour.  The Bill defines golden hour as the time period of up to one hour following a traumatic injury, during which the likelihood of preventing death through prompt medical care is the highest.  The central government may also make a scheme for providing interim relief to claimants seeking compensation under third party insurance.  The Bill increases the minimum compensation for hit and run cases as follows: (i) in case of death, from Rs 25,000 to two lakh rupees, and (ii) in case of grievous injury, from Rs 12,500 to Rs 50,000.
  • Compulsory insurance:The Bill requires the central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India.  It will be utilised for: (i) treatment of persons injured in road accidents as per the golden hour scheme, (ii) compensation to representatives of a person who died in a hit and run accident, (iii) compensation to a person grievously hurt in a hit and run accident, and (iv) compensation to any other persons as prescribed by the central government.  This Fund will be credited through: (i) payment of a nature notified by the central government, (ii) a grant or loan made by the central government, (iii) balance of the Solatium Fund (existing fund under the Act to provide compensation for hit and run accidents), or (iv) any other source as prescribed the central government.
  • Good samaritans: The Bill 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 Bill 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.  The manufacturer of the recalled vehicle will be required to: (i) reimburse the buyers for the full cost of the vehicle, or (ii) replace the defective vehicle with another vehicle with similar or better specifications.
  • National Transportation Policy: The central government may develop a National Transportation Policy, in consultation with state governments.  The Policy 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 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.
  • Offences and penalties:The Bill increases penalties for several offences under the Act.  For example, the maximum penalty for driving under the influence of alcohol or drugs has been increased from Rs 2,000 to Rs 10,000.  If a vehicle manufacturer fails to comply with motor vehicle standards, the penalty will be a fine of up to Rs 100 crore, or imprisonment of up to one year, or both.  If a contractor fails to comply with road design standards, the penalty will be a fine of up to one lakh rupees.  The central government may increase fines mentioned under the Act every year by up to 10%.
  • 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.

(Source PRS)



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