PROJECT ON

MOTOR VECHILE AMENDMENT BILL 2019

SUBMITTED TO:
DR. DEO NARAYAN SINGH
FACULTY, TORT LAW
ASSISTANT PROFESSOR
SCHOOL OF LAW AND GOVERNANCE
CENTRAL UNIVERSITY OF SOUTH BIHAR

SUBMITTED BY:
RAJA KUMAR
B.A.LL.B. (hons.), 1st SEMESTER
2019-2024 BATCH
SCHOOL OF LAW AND GOVERNANCE
CENTRAL UNIVERSITY OF SOUTH BIHAR

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 TABLE OF CONTENTS
CHAPTER – I INTRODUCTION……………....……………………..
………………………..... 4

 Research Methodology
 Aims & Objectives
 Research Hypothesis
 Research Question

CHAPTER: II.
 HISTORICAL BACKGROUND OF FORMATION OF MOTOR VECHILE ACT AND
SOME AMENDMENTS………………………………………………………………8

CHAPTER: III
 New fines under the Motor Vehicle (Amendment) Act
2019………………..16

CHAPTER: IV
 New rules and provisions of the Motor Vehicle (Amendment) Act,2019 ………
18

CHAPTER: V
 Motor vechicles act 2019: pros and cons………………………………19
 Social and legal issues…………………………………………………. 22

CHAPTER:VI
 Accident and compensation under motor vehicle act………………….23

CHAPTER:VII
 some important cases under motor vehicles act……………………….24

CONCLUSION……………………………………………………….28
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BIBLIOGRAPHY……………………………………………………29

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 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher

DR. DEO NARAYAN SINGH ,who gave me the golden opportunity to
do this wonderful project on the topic MOTOR VECHILE
AMENDMENT BILL 2019, which also helped me in doing a lot of
Research and I came to know about so many new things.

I am really thankful to them.

Secondly i would also like to thank some website, books, magazine and
friends who helped me a lot in finalizing this project within the limited
time frame.

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 CHAPTER - I

INTRODUCTION

Vehicle borrowed from Latin vehiculum means "medium'' or agent of

transmission. A vehicle is a machine that transports people or cargo. By
using a vehicle we can cover more distance in less time. It includes
wagons, bicycles, motor vehicles (motorcycles, cars, trucks, buses),
railed vehicles etc. here, we will discuss about motor vehicles and their
act, amendments and Bills. Motor vehicles are a self propelled vehicle.
In order to give effective rights to the person injured or expired
in an accident, Fatal Accidents Act, 1885 was enacted in India. This Act
provided only a procedure and a right of named legal heirs to claim
compensation from the person committing negligence. This
enactment has worked in India for a comfortable long period.
Because of increase in automation and consequential losses of life
and property in accident, it was considered that to give relief to the
victims of accident claims ,an effective law should be brought in.
To facilitate this, provisions have been inserted for compulsory
third party insurance and to provide a machinery of adjudication of
claim in Motor Vehicle Act by amending Act No.110 of 1956, by
which Section 93 to 109 with reference to third party insurance
and Section 110(A) to 110(F) with reference to creation of Motor
Accident Claims Tribunal and procedure for adjudication of claim
has been provided. Initially the liability was restricted to a
particular sum but after 1982 the liability of the Insurance
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Company has been made unlimited and even the defences of the
Insurance Companies have been restricted so as to ensure payment
of compensation to third parties. In the year 1982, a new concept
of providing interim compensation on ‘No Fault’ basis have been
introduced by addition of Section 92(A) to 92(E). By the same
amendment, relief has also been given to those persons who expire by
hit and run accidents, where the offending vehicles are not identified.
motor vehicle act 1988 was passed by the parliament of India, but the Act
came into force from 1 July 1989.This act is responsible for covering all the
aspects that are related to road transport vehicles . Furthermore, this act
provided licensing to the conductors and the drivers as well as registration
of motor vehicles. Also, traffic regulations, the provision on controlling the
permit, penalties, and liabilities were covered under the motor vehicle act
– 1988.
Also, under the motor vehicle act, it is mandatory for a driver to have a
valid driver’s license. Thus, no vehicle can be driven without obtaining
registration under the motor vehicle act first. Also, this registration
certificate is valid from the date of issuing to the next fifteen years.
Furthermore, the license can be renewed for five more years. There are
various offenses that are covered under the motor vehicle act – 1988.
Also, for these offenses, there are penalties which need to be paid by
the person who has committed the crime.

Here are some of the essential road safety rules in India:

 Keep Left
 Use Indicators
 Wear Helmet and Seatbelt
 Do Not Overload
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  Do Not Use Mobile Phone
 Give Way to Emergency Vehicles
 Follow Road Signs
 Carry Driving and Vehicle Documents
 Don’t Jump a Red Signal
RESEARCH METHODOLOGY

Research Methodology: The project is based on the doctrinal method of

research as no field work done on this topic.

Aims & Objectives: The significant rise in deaths and disabilities due to
motor vehicular accident is alarming! Every other day, a person is found
to be a victim of vehicular mishaps, one leaves the house to come home
and spend time with family, not on some hospital bed.
To do a depth analysis of formation of the motor vehicle act, the major
objective of this act was to concentrate on the innocent people who are
traveling on the road and can get affected by the drivers. The drivers of
this motor vehicle were not held accountable for until this act thus,
under the motor vehicle act, there was a provision for compensation for
these helpless people on the road.
So, it can be said that the motor vehicle act revolves around providing
safety.
Sources of Data: The whole project is made with the use of secondary
sources. The following secondary sources of data have been used in the
project:
1. Books/ magazine
2. Websites

Mode of Citation: The researcher has followed a uniform mode of

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citation throughout the course of this research paper.

Type of Study: For this topic, the researcher has opted for Descriptive
and Explanatory type of study as in this topic, the researcher is providing
the descriptions of the existing facts.

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Research Hypothesis: The assumption of the whole project is to seek
knowledge about motor vehicle act to form rules and regulations for
road safety.

Research Question:

whether such high fines are feasible or say justified?

Should I wait to apply for driving license or apply for renewal of

driving license till 01.09.2019 or later or should I apply on or before
31.08.2019? Which is more advantageous?

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 CHAPTER: II.

HISTORICAL BACKGROUND OF FORMATION OF MOTOR VECHILE ACT AND

SOME AMENDMENTS

Pre –1988 Position

Before,the Motor Vehicle Act, 1988 came in to existence, the Motor

Vehicles Act, 1939 was applicable for all type of Motor Accidents.
The Motor Vehicles Act, 1939, consolidates and amends the law relating
to motor vehicles. This has been amended several times to keep it up to
date. The need was, however, felt that this Act should, now inter alia,
take into account also changes in the road transport technology,
pattern of passenger and freight movements, developments, of the
road network in the country and particularly the improved
techniques in the motor vehicles management.1

Various Committees, like, National Transport Policy Committee,

National Police Commission, Road Safety Committee, Low Powered
Two –Wheelers Committee, as also the Law Commission have gone into
different aspects of road transport. They have recommended
updating, simplification and rationalization of this law. Several
Members of Parliament have also urged for comprehensive review
of the Motor Vehicles Act, 1939, to make it relevant to the modern
day requirements. A Working Group was,therefore, constituted in
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The Motor Vehicle Act, 1988, Statement of Objects and Reasons
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January, 1984 to review all the provisions of the Motor Vehicles
Act, 1939 and to submit draft proposals for a comprehensive
legislation to replace the existing Act. This Working Group took into
account the suggestions and recommendations earlier made by
various bodies and institutions like Central Institute of Road
Transport (CIRT), Automotive Research Association of India
(ARAI), and other transport organizations including,
The manufacturers and the general public, Besides, obtaining
comments of State Governments on the recommendations of the
Working Group,
these were discussed in a specially convened meeting of Transport
Ministers of all States and Union territories. Some of the more
important modifications so suggested related for taking care of –

a. The fast increasing number of both commercial vehicles and

personal vehicles in the country.

b. The need for encouraging adoption of higher technology in

automotive
sector.

c. The greater flow of passenger and freight with the least impediments
so that islands of isolation are not created leading to regional or
local imbalances;

d. Concern for road safety standards, and pollution control

measures,
standards for transportation of hazardous and explosive materials;

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e. Simplification of procedure and policy liberalization’s for private
sector operations in the road transport field; and

f. Need for effective ways of tracking down traffic offenders.2

II. The Motor Vehicles Act, 1988

The Supreme Court in M. K. Kunhimohammed v. P. A. Ahmedkutty,

has made certain suggestions to raise the limit of compensation payable
as a result of motor accidents in respect of death and permanent
disablement in the event of there being no proof of fault on the part of
the person involved in the accident and also in hit and run motor
accidents and to remove certain disparities in the liability of the-
insurer to pay compensation depending upon the class or type of
vehicles involved in the accident. The above suggestions made by the
Supreme Court have been incorporated in the Bill of the Motor Vehicles.
The proposed legislation has been prepared in the light of the
above background. Some of the more important provisions of the
Bill provide for the following matters, namely :-

a.Rationalization of certain definitions with additions of certain

new definitions of new types of vehicles.

b.Stricter procedures relating to grant of driving licences and

the period of validity thereof.

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IBID
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c.Laying down of standards for the compone
nts and parts of motor vehicles.

d.Standards for anti-pollution control devices.

e.Provision for issuing fitness certificates of vehicles also by

the authorized testing stations.

f. Enabling provision for updating the system of registration marks.

g.Liberalized schemes for grant of stage carriage permit on

non nationalized routes, all India Tourist permits and also national
permits for goods carriages.

h.Administration of the Solatium Scheme by the General Insurance

Corporation.

i.Provision for enhanced compensation in cases of “no fault liability”

and in hit and run motor accidents.

j.Provision for payment of compensation by the insurer to the

extent of actual liability to the victims of motor accidents irrespectiveof
the class of vehicles.

k.Maintenance of State registers for driving licences and

vehicle registration.

l.Constitution of Road Safety Councils.3

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Supra
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The Bill also seeks to provide for more deterrent punishment in the cases
of certain offences.

The above suggestions which were incorporated in the Motor

Vehicles Bill received the assent of the President on 14 th October,
1988 and came on the Statute Book as Motor Vehicles Act, 1988.
The Act came into force with effect from 1 st July, 1989 replacing the
Motor Vehicles Act, 1939.

The erstwhile Motor Vehicles Act, 1939 was repealed by section

217 of the Motor Vehicles Act, 1988. Said section 217 also
repealed all laws corresponding to the Motor Vehicles Act, 1939,
then being in force in any
State immediately before the commencement of the Act of 1988 in
the respective states.

III. The Motor Vehicles (Amendment) Act, 1994

The Act was amended by the Motor Vehicles (Amendment) Act, 1994,
which came in to effect from 14.11.1994. After the coming into force of
the Motor Vehicles Act, 1988, Government received a number of
representations and suggestions from the State Government Transport
Operators and members of public regarding the inconvenience faced by
them because of the operation of some of the Provisions of the 1988
Act.4

IV. The Motor Vehicles (Amendment) Act, 2000

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The Motor Vehicle (Amendment) Act, 1994, Statement of Objects and Reasons
14
The Act was again amended by the Motor Vehicles (Amendment) Act
2000. Further, amendments in the aforesaid Act have become
necessary so as to reduce the vehicular pollution and to ensure the
safety of the road users. It is, therefore, proposed to prohibit alteration of
vehicles in any manner including change of tyres of higher capacity.
However, the alteration of vehicles with a view to facilitating the
use of eco-friendly fuel including Liquefied Petroleum Gas
(LPG) is being permitted.
Further, it is proposed to confer powers on the Central Government
to allow the alteration of vehicles for certain specified purposes.
At present, the educational institutions are not required to obtain permits
for the operation of buses owned by them. It is proposed to bring the
buses run by these institutions within the purview of the aforesaid
Act by requiring them to obtain permits. It is also proposed to
allow renewal of permits, driving licences and registration
certificates granted under the Motor Vehicles Act, 1939 to be
renewed under the Motor Vehicles Act, 1988, by
inserting new section 217 -A.

The proposed amendments are essential in the overall interest of

securing road safety and maintaining a clean environment.5

V. The Motor Vehicles (Amendment) Act, 2001

Third times amendments to this act were brought by the Motor

Vehicles (Amendment) Act, 2001. The Motor Vehicles Act, 1988
is a Central legislation through which the road transport is
regulated in the country. By the Motor Vehicles (Amendment) Act,
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The Motor Vehicle (Amendment) Act, 2000, Statement of Objects and Reasons
15
1994, inter alia, amendments were made for make special provisions
under sections 66 & 67 so as to provide that vehicles operating on
ecofriendly fuels shall be exempted from the requirements of
permits and also the owners of such vehicles shall have the
discretion to fix fares and freights for carriage of passengers and goods.
The intention in bringing the said amendments was to encourage the
operation of vehicles with such ecofriendly fuels. However, it has
been observed that during the last several years, not only the
supply of ecofriendly fuels like CNG has increased tremendously, a
large number of vehicles have come on the road which in terms of
sections 66 and 67, as amended by the Motor Vehicles
(Amendment) Act, 1994, are operating without any requirement of
permits and are, therefore, not subject to any control of the
State Governments. The number of such vehicles is likely to
further increase substantially.6

VI.The Motor Vehicles (Amendment) Act, 2019

Ministry of Law and Justice under the Government of India has notified
the recently passed new Motor Vehicles (Amendment) Bill, 2019. The
legislation was previously introduced in 2017 but couldn't pass the Rajya
Sabha and lapsed with the dissolution of the 16th Lok Sabha. The 2019
Bill was tabled in both the houses by the Union Minister for Road
Transport and Highways, Nitin Gadkari. The Bill aims to enforce stricter
penalties for road traffic violations.
The Motor Vehicles Amendment Act, 2019, which contains 63
provisions that deal with penalties, licenses, registration and the National
Transport Policy, implemented from Sunday, 1 September 2019. These
6
The Motor Vehicle (Amendment) Act, 2001, Statement of Objects and Reasons
16
are provisions which require no further amendments in the Central
Motor Vehicles Rules 1989.
The new law will enhance the penalty for unauthorised use of vehicles
without licence to Rs 5,000 from Rs 1,000. Besides, the penalty for
driving without license will go up from Rs 500 to Rs 5,000.

The Act will also increase the penalty for drunken driving to

imprisonment up to 6 months and/or fine up to Rs 10,000 for the first
offence, and imprisonment up to 2 years and/or fine of Rs 15,000 for the
second offence.

It enables state governments to designate any person or agency as

the enforcement agency to detect and impose a penalty on
overloaded vehicles. The legislation, introduced by Minister of
Road Transport and Highways Nitin Gadkari, was passed by
the Rajya Sabha on 31 July and was passed in the Lok Sabha on 23
July.

The Act also proposes the recall of defective vehicle parts by auto
companies, holding builders accountable for poor quality
infrastructure and making vehicle owners criminally liable for
violations committed by juvenile drivers.7

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NEWS 18

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 CHAPTER:III
New fines under the Motor Vehicle (Amendment) Act 2019
1. Penalty for drunken driving has been increased to 6 months
imprisonment and/or Rs 10,000 fine for the first offence; two years
imprisonment and/or fine of Rs 15,000 for second offence.

2. Penalty for racing and speeding has been increased to imprisonment

of up to 1 month and/or fine up to Rs 500 for first offence; imprisonment
of up to 1 month and/or fine of up to Rs 10,000 for second offence.

3. Penalty for travelling without ticket has been increased from up to Rs

200 to Rs 500.

4. Penalty for unauthorised use of vehicle without licence has been

increased from up to Rs 1,000 to Rs 5,000.

5. Fine for individuals driving without licence has been increased from

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up to Rs 500 to Rs 5,000.

6. Fine for not wearing seatbelt has been increased from Rs 100 to Rs
1,000.

7. Fine for talking on a mobile phone while driving has been increased
from Rs 1,000 to Rs 5,000.

8. Penalty for drivers if found mentally or physically unfit for driving

will be from up to Rs 200 to Rs 1,000 on the first count, from up to Rs
500 to Rs 2,000 on the second count.

9. Penalty for using vehicles without a permit has been increased to

imprisonment of up to 6 months and/or fine of up to Rs 10,000 on the
first offence; imprisonment of up to 1 year and/or fine of Rs 10,000 for
the second offence.

10. Individuals driving uninsured vehicles will be fined either Rs 1,000

and/or punishment up to 3 months or Rs 2,000 and/or imprisonment of
up to 3 months for first offence; the fine will be Rs 4,000 and/or 3
months imprisonment for the second offence.

11. Punishment for juveniles for offences will include Rs 25,000 and
imprisonment up to 3 years and cancellation of registration of motor
vehicle for 12 months. The juvenile will also become ineligible to obtain
learners' license until the age of 25 years.

12. If a juvenile uses a motor vehicle in violation of the newly inserted

Section 199A, then the registration of the vehicle might be cancelled for
a year. After a year, a fresh application for registration will be allowed to
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be submitted.8

CHAPTER:IV

New rules and provisions of the Motor Vehicle (Amendment) Act,

2019

1. Aadhaar card has been made mandatory for getting a driving

licence and vehicle registration.

2. Applicants of learner's licence can now apply to any licencing

authority in the state and submit the application online. The minimum
educational qualification to drive a transport vehicle has been removed.
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3. Driving licence-holders can apply for renewal any time between one
year before its expiry up to one year after expiry. Applying for renewal
after one year from the date of expiry of driving license, will require the
applicant to pass the driving test again.

4. In case of hit-and-run, the compensation amount provided by the

government has been to the victim’s family has been increased from Rs
25,000 to Rs 2 lakh.

5. The Act has provisions for the protection of those who come forward
to help accident victims. Reportedly, they will be protected from
criminal or civil liability and "it will be optional for them to disclose
their identity to the police or medical staff"

6. With regard to road accidents, a time limit of six months have been
specified for submitting the application for compensation to the Claims
Tribunal.9

CHAPTER- V

MOTOR VECHICLES ACT 2019: PROS AND CONS

Motor Vehicle aims to reduce the number of road accidents and fatalities
resulting from them. According to government statistics, every year 5
lakh road accidents are reported, in which 1.5 lakh people lose their
lives. In the present Motor Vehicle Act, there are 223 Sections out of
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economictimes
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which the Bill has tried to amend 68 sections. New provisions are being
made to simplify third party insurance claims and settlement process.
Stricter penalties for offences by juveniles, higher compensation for hit
and run cases.

The Motor Vehicle Bill proposes insertion of 28 new sections. The

amendments are mainly focused on issues that relate to improving road
safety and citizens’ ease and facilitation while dealing with the Transport
Department. Last mile connectivity, public transport, strengthening rural
transport, automation and computerization, enabling online services are
some of the other areas that find focus in the Bill. We take a look:

1) With an aim to enhance road safety, the bill proposes to increase

penalties, that it hopes will act as deterrent against traffic
violations. Stricter provisions are being proposed with respect to
offences like driving without licence, over-speeding, juvenile
driving, drunken driving, dangerous driving, overloading etc.
2) To improve delivery of services, e-governance is a highlight of the
bill. This includes doing away with the requirements of educational
qualifications for transport licenses, enabling online learning
licenses, increasing validity period for driving licenses.
3) The compensation for hit and run cases will be increased from Rs
25,000 to Rs 2 lakh. There is also a provision for payment of
compensation up to Rs 10 lakh in the case of road accidents
fatalities. To help road accident victims, “Good Samaritan”
guidelines have been incorporated in the Bill
4) The Bill also proposes that in the case of offences committed by
juveniles, the guardian/owner shall be deemed guilty. The juvenile
would be tried under JJ Act. Registration of the motor vehicle will
also be cancelled.
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 5) To bring harmony of the registration and licensing process,
government proposes to create National Register for Driving
Licence and National Register for Vehicle registration through
“Vahan” & “Sarathi” platforms. This will facilitate uniformity of
the process across the country, says the government.10

CONS;
Many critics dismiss the law as mere cosmetic tinkering. they point out
that the entire law has to be overhauled, not just amended, as it is “as old
as 31 years”. Once the Amendment is passed, the Bill has to be
stringently implemented and enforced too.  
But even for the first step, there seem to be a number of obstacles. Will
the government, police and people work towards a holistic solution, or
will the idea be just another victim?

SOCIAL AND LEGAL ISSSUES

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  SOCIAL ISSUE

Describing the motor vehicle (Amendment)Act, 2019 that proposes

higher fines for several traffic violations as very rigid.
There’s literally panic among many vehicle owners after implementation
of Motor Vehicle Bill 2019 which not only has the provision of strict
regulation of traffic rules, but also imposing heavy penalties for
violations.
In Delhi, 3,900 challans are issued to various violators on the first day of
the implementation. The social media, as well as regular media, are
showing reports that two-wheelers are charged for 21,000 rupees for
various violation of traffic rule including ‘no-helmet’, ‘no Driving
Licence’ No Insurance etc’.
Many consider that such a huge fine is not justified. States like Punjab,
Madhya Pradesh, West Bengal and Rajasthan refused to implement the
present vehicle act whereas the Gujrat government expressed reservation
on high fines that may not be feasible. The auto and taxi unions of Delhi
demanded rollback of such fines.11

It is only the people active on social media who are aware of the changes
in traffic rules. People are not aware of the volume of penalties and its
impact. Not many people would know that driving license can be ceased
for three months for violation of certain rules.

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  LEGAL ISSUES

Several states have decided not to implement the new Motor Vehicles
(Amendment) Act citing unfair penalties. Some states said it would
overburden people while others said it would lead to higher levels of
corruption. The Union Transport Minister Nitin Gadkari differed from
what unconvinced states had to say. He said the high penalties under the
amendment were undertaken after expansive deliberations and the key
objective was to increase road discipline among citizens. India remains
one of the top accident-prone nations in the world. As per Ministry of
Road Transport and Highways data, 1.47 lakh people lost their lives due
to road accidents in 2017; the scenario remains the same in 2019.
Despite the data and the good intentions behind stricter penalties, states
such as West Bengal, Madhya Pradesh, Rajasthan, Punjab, Jharkhand
and Maharashtra denied imposing stricter fines to boost road discipline.
Meanwhile, other states like Karnataka, Uttarakhand, Gujarat, and
Kerala decided to reduce the rates that have been stated in the amended
act.12

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 CHAPTER: VI

ACCIDENT AND COMPENSATION UNDER MOTOR VEHICLE ACT

In order to give effective rights to the person injured or expired in an

accident, Fatal Accidents Act, 1885 was enacted in India. This Act
provided only a procedure and a right of named legal heirs to claim
compensation from the person committing negligence. This enactment
has worked in India for a comfortable long period. Before the Motor
Vehicle Act, 1988 came in to existence, the Motor Vehicles Act, 1939
was applicable. This Act was amended several times to keep it up to
date. Various Committees and the Law Commission have gone into
different aspects of road transport. They have recommended for
updating, simplification and rationalization of this law. The Motor
Vehicle Act, 1988, has been enacted with following objectives:-

A. Standards for anti-pollution control devices

B. Enabling provision for updating the system of registration marks.
C. Provision for enhanced compensation in cases of “no fault liability”
and in hit and run motor accidents.
D. Maintenance of State registers for driving licences and vehicle
registration.

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 CHAPTER: VII

SOME IMPORTANT CASES UNDER MOTOR VEHICLES ACT

1. Kavitha v. Deepak and Others [(2012) 8 SCC 604]

In an accident, which occurred on 2004, the appellant suffered grievous

injuries alleging that the accident was caused due to rash and negligent
driving of the truck owned by respondent No.1 and driven by respondent
No.2. She alleged that the truck dashed against the Maruti Esteem car in
which she was travelling and as a result of the accident she suffered
injuries to her head, mouth, right ear and other parts of the body and
consequentially she has become disabled from doing her routine work.
She was initially treated at Government hospital, Ratlam and then at
Bhandari Hospital, Indore. As per the medical advice given at Indore she
was taken to Mumbai, Chennai and finally to Delhi for treatment. The
appellant filed a petition nder Section 166 of the Motor Vehicles Act,
1988 for award of compensation to the tune of Rs. 85 lakhs.
 In the written statement filed on behalf of the insurance company, it was
pleaded that the accident was not caused due to rash and negligent
driving of the truck and that the driver was not holding a valid and
effective driving license on the date of accident.
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The driver of the truck was prosecuted for offences under Sections
279, 337 and 338 IPC. During the trial, he made confession that the
accident was caused due to his rash and negligent driving. The trial
Court convicted the driver and imposed a fine of Rs.2,000/- and in
default to undergo three months imprisonment.13

2.The United India Insurance Co. v. Sh. Pritpal Singh (1996) 113 PLR 49

The accident in relation to which the claim petition was filed by the heirs
of Smt. Jasbir Kaur took place on 7.10.1992 near Dhanas bridge, Union
Territory, Chandigarh. Smt. Jasbir Kaur, who was working as Lecturer in
the Government Senior Secondary School, Dhanas, and who at the
relevant time going on her Kinetic Honda Scooter from Sector 35 to the
School, was struck, by a tractor from behind. In the accident Smt. Jasbir
Kaur sustained injuries and died. Her heirs filed a claim petition for
award of Rs. 20,00,000/- by way of compensation. The owner and the
driver of the tractor contested the claim, on the ground that the deceased
was guilty of negligent driving and her two-wheeler had struck at the
back side on the trolley. The insurance company contested the claim on
the ground that Sant Singh was not owner of the vehicle and Nachatar
Singh was not qualified to be a driver of the vehicle.
The Tribunal held that the accident did take place due to rash and
negligent driving of the tractor by Nachhatar Singh. It further held that
income of late Smt. Jasbir Kaur was Rs. 3294/- per month. By excluding
1/3rd of the salary towards her own expenses the Tribunal declared that
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the annual dependency was Rs. 26,352/-. On this basis, it held that the
total compensation payable to the claimants would come to Rs.
3,68,928/-. Lastly, the Tribunal considered the two contentions raised on
behalf of the insurance company, namely, that the trolley which was
involved in the accident was not insured with the company and that the
licence possessed by the driver was not a valid licence. Both these
contentions have been rejected by the Tribunal by giving detailed
reasons.14

3.Ram Chander vs Naresh Kumar And Ors. AIR 1999 P H 219

JUDGMENT Jawahar Lal Gupta, J.

On February 22, 1997, Siri Pal alias Pala Ram, who was going on a
bicycle, was hit by truck bearing Registration No. HYA-9416. The
accident was fatal. The two sons of the deceased filed claim application.
The Motor Accident Claims Tribunal has found that the deceased was
aged about 57 years of age at the time of accident. He was earning Rs.
l,500/- per month. By fixing the monthly dependency of Rs. 700/- and
applying a multiplier of '10', the Tribunal assessed the compensation at
Rs. 84,000/-. Another amount of Rs. 5,000/- was awarded on account of
funeral and other incidental charges. Thus, a total compensation of Rs.
89,000 was awarded by the Tribunal. Interest @ 2% per annum on this
amount was also awarded. Aggrieved by the award, Ram Chander, the
owner of the vehicle, has filed the present appeal. It is urged that the
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Tribunal has erred in holding that the compensation shall be payable by
the owner of the vehicle and not by the New India Assurance Company
Ltd.
Mr. B. S. Walia, learned Counsel for the appellant, contends that the
vehicle having been insured, the Insurance Company could not have
been absolved of its liability to indemnify the owner for the death of a
third party.
Admittedly, the vehicle had been transferred in the name of the appellant
on May 30, 1996. It is also the admitted position that an insurance policy
had been obtained by the original owner, Som Nath. However, no
intimation regarding the transfer of the truck or for the transfer of the
policy was given by the appellant to the Insurance Company. Still
further, in the proceedings before the Motor Accident Claims Tribunal,
the original owner, Som Nath, was not even impleaded as a party.
Neither the appellant nor his driver, Naib Singh, even entered the
witness-box.

In fact, even in the written statement filed by the appellant, it was not
suggested that Som Nath was the owner of the truck. The factual
position that emerges is that there was no contract between the appellant
and the Insurance Company for indemnifying him for any injury to a
third party.
Despite the lapse of more than eight months, the appellant took no step
for the transfer of the policy or for getting a new policy. In this situation,
the appellant has to thank himself for the finding of the Tribunal that the
Insurance Company is not liable to pay any compensation.15

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 Conclusion:

“Alert today, Alive tomorrow”. As far as road safety is

concerned, discipline is imperative. If implemented in right spirit, the
law can change road habits of all by not only imposing stiffer penalties,
but also trying to inculcate a sense of responsibility among the
citizens. After the passing of this bill Road and transport Minister says
that the Bill will provide an Efficient, Safe and Corruption Free
Transport System in the Country.

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 BIBLIOGRAPHY

WEBSITES:-

 https://indiankanoon.org

 https://pib.gov.in
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  https://www.firstpost.com

BOOKS/JOURNALS:-

 Times of India
 Economic times
 Rajyasabha TV

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