Motor Vehicle Amendment Bill

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TOPIC: General Studies 2

In News: The Bill seeks to amend the Motor Vehicles Act, 1988 to provide for road safety.  The Act provides for grant of licenses and permits related to motor vehicles, standards for motor vehicles, and penalties for violation of these provisions.

Background: The past two decades have witnessed a huge rise in road accidents, fatalities and other safety concerns in India. A government committee estimated that road accidents rose by about 50% between 2005 and 2015. However, it was only in 2014 that the National Urban Transport Policy (NUTP) committee proposed a new legislation, incorporating all modes of transportation, multi-modal integration, road safety, etc. Following that, the Road Transport and Safety Bill was drafted in 2014. Finally, it was redrafted with the Motor Vehicles Amendment Bill in 2019. The bill suggests a new National Transportation Policy, which may replace the existing National Urban Transport Policy, 2014.

Compensation for road accident victims: 

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:

This Fund will be credited through: 

  1. payment of a nature notified by the central government, 
  2. a grant or loan made by the central government
  3. balance of the Solatium Fund (existing fund under the Act to provide compensation for hit and run accidents)
  4. 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

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:

Offences and penalties: The Bill increases penalties for several offences under the Act.  

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.

Conclusion: The government needs to ensure better ways to implement and enforce the new rules and regulations to its fullest. There is no point of making a bill that requires huge amount of risks in enforcement, if the government fails to make it practical.

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