Cabinet approved Motor Vehicle (Amendment) Bill 2016

The Union Cabinet has given its approval for Motor Vehicle (Amendment) Bill 2016.

  • In the present Motor Vehicle Act, there are 223 Sections out of which the Bill aims to amend 68 sections whereas Chapters 10 has been deleted and a Chapter 11 is being replaced with new provisions to simplify third party insurance claims and settlement process.
  • The important provisions include increase in compensation for Hit & Run cases from Rs. 25000 to Rs. 2 lakhs. It also has provision for payment of compensation upto Rs 10 lakh in road accidents fatalities.
  • The Bill also proposes insertion of 28 new sections. The amendments mainly focus on issues relating to improving road safety, citizens’ facilitation while dealing with the Transport Department. Strengthening rural transport, last mile connectivity and public transport, automation and computerization and enabling online services.
  • The Bill propose to improve the transport scenario in the country by permitting the States to grant exemptions in Stage carriage and contract carriage permits for promoting rural transport, public transport, last mile connectivity and for passenger convenience and road safety.
  • The Bill proposes that the State Government can specify a multiplier, not less than one and not greater than ten, to be applied to each fine under this Act and such modified fine.
  • Improving delivery of services to the stakeholders using e-Governance is one of the major focuses of this Bill. This include enabling online learning licenses, increasing validity period for driving licenses, doing away with the requirements of educational qualifications for transport licenses are some of the features.
  • The proposed amendments in various penalties under Motor Vehicle Amendment Bill – 2016 are attached herewith for information of the members.