MVL Bill-1 PDF

REPORT NO.
243
PARLIAMENT OF INDIA
RAJYA SABHA
DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE

ON TRANSPORT, TOURISM AND CULTURE
TWO HUNDRED FORTY THIRD REPORT

The Motor Vehicles (Amendment) Bill, 2016
(Presented to the Rajya Sabha on 8th February, 2017)

(Laid on the Table of Lok Sabha on 8th February, 2017)
Rajya Sabha Secretariat, New Delhi

February, 2017/ Magha, 1938 (Saka)
E-mail:[email protected]
Website:http://rajyasabha.nic.in
PARLIAMENT OF INDIA
RAJYA SABHA
DEPARTMENT-RELATED PARLIAMENTARY
STANDING COMMITTEE ON TRANSPORT,
TOURISM AND CULTURE
TWO HUNDRED FORTY THIRD REPORT

The Motor Vehicles (Amendment) Bill, 2016
(Presented to the Rajya Sabha on 8th February, 2017)

(Laid on the Table of Lok Sabha on 8th February, 2017)
Rajya Sabha Secretariat, New Delhi

February, 2017/ Magha, 1938 (Saka)
CONTENTS
PAGES
1. COMPOSITION OF THE COMMITTEE (i)

2. INTRODUCTION (ii)
3. ACRONYMS (iii)
4. REPORT 1- 97
5. RECOMMENDATIONS/ OBSERVATIONS-AT A GLANCE 98-120
*6. MINUTES
______________________________________________________________________
*To be appended at printing stage.
COMPOSITION OF THE COMMITTEE
(Constituted on 1st September, 2016)
1. Shri Mukul Roy - Chairman
Rajya Sabha
2. Shri Ritabrata Banerjee

3. Dr. K. Chiranjeevi
4. Dr. Prabhakar Kore
6. Shri Kiranmay Nanda
7. Shri Rangasayee Ramakrishna
8. Kumari Selja
9. Shri Rajeev Shukla
9. Shri Narendra Kumar Swain
10. Shri Lal Sinh Vadodia
Lok Sabha
11. Shri Subrata Bakshi

12. Shri Ram Charitra Nishad
13. Shri Vinod Chavda
14. Shri Rajeshbhai Naranbhai Chudsama
15. Kumari Arpita Ghosh
16. Shri Rahul Kaswan
17. Shri P. Kumar
18. Shri Harish Chandra Meena
19. Yogi Aditya Nath
20. Shri Kristappa Nimmala
21. Shri Rajesh Pandey
22. Shri Rajesh Ranjan
23. Shri P. Srinivasa Reddy
24. Shri Ram Kumar Sharma
25. Shri Prathap Simha
26. Shri Dushyant Singh
27. Shri Kunwar Haribansh Singh
28. Shri Rakesh Singh
29. Shri Shatrughan Sinha
30. Shri Manoj Tiwari
31. Shri K. C. Venugopal
SECRETARIAT
Shri J.G. Negi, Joint Secretary
Shri Swarabji B., Director
Shri Arun Kumar, Assistant Director
Smt. Catherine John L., Assistant Director
Shri P.P. Raumon, Committee Officer
(i)
INTRODUCTION
I, the Chairman of the Department-related Parliamentary Standing Committee

on Transport, Tourism and Culture, having been authorised by the Committee to
present on its behalf, do hereby present this Two Hundred Thirty Ninth Report of the
Committee on the Motor Vehicles (Amendment) Bill, 2016*.
2. The Bill was introduced in the Lok Sabha on the 9th August, 2016. In pursuance
of rules relating to the Department-related Parliamentary Standing Committees, the
Hon‟ble Chairman, Rajya Sabha, referred** the Bill to the Committee on the 17th
August, 2016 for examination and report within two months. On the request being
made by the Chairman of the Committee, Hon‟ble Chairman had granted extension of
time for a period of two months i.e. upto 16th December, 2016. But the deliberations
could not be concluded within the stipulated period and the Committee again requested
extension. The Hon‟ble Chairman, Rajya Sabha acceded to the request for the
presentation of the Report to both the Houses of the Parliament upto 16th February,
2017.
3. The Committee took oral evidence of the Secretary and other officers of the
Ministry of Road Transport and Highways and Ministry of Law and Justice at its
meeting held on the 29th September and 14th October, 2016. The Committee heard the
views of Secretaries, Ministries of Road Transport and Transport Commissioners of
various States and Union Territories on 25th October, 2016 and 4th November, 2016.
The Committee also heard the views of the representatives of various stakeholders and
individuals at its meeting held on the 4th November, 2016.
4. The Committee considered the draft Report on the Bill in its meetings held on
9 December and 27th December, 2016 and adopted the same on 24th January, 2017.
th
5. The Committee wishes to express its thanks to the Secretary and other officers
of the Ministry of Road Transport and Highways and Ministry of Law and Justice for
the assistance and inputs provided during deliberations on the provisions of the Bill.
The Committee also acknowledges the contribution of Secretaries, Road Transport of
various States and representatives of various NGOs, stakeholders and individuals who
submitted their valuable suggestions on the provisions of the Bill.
MUKUL ROY
New Delhi; Chairman,
January 24, 2017 Department-related Parliamentary Standing
4 Magha, 1938 (Saka) Committee on Transport, Tourism and Culture.
* Published in Gazette of India Extraordinary Part-II, Section-2, dated 9th August, 2016.
**Rajya Sabha Parliamentary Bulletin Part-II No 55911, dated 26th October, 2016.
(ii)
ACRONYMS
GoM - Group of Ministers

GDP - Gross Domestic Product
RTA - Road Transport Authority
RTO - Road Transport Officers
CUTS - Consumer Unity & Trust Society
HMV - Heavy Motor Vehicle
MVA - Motor Vehicle Act
NHAI - National Highways Authority of India
MACT - Motor Accident Claims Tribunal
LMV - Light Motor Vehicle
(iii)
REPORT
The Motor Vehicles (Amendment) Bill, 2016 was introduced in Lok Sabha on
th
9 August, 2016 and Hon'ble Chairman, Rajya Sabha in consultation with the Hon'ble
Speaker, Lok Sabha referred this Bill on 17th August, 2016 to the Department-related
Parliamentary Standing Committee on Transport, Tourism and Culture for
consideration, examination and report within 2 months. Since it is an exhaustive Bill
and it required time for examination of stakeholders on the subject, the Committee
sought extension of time for two months upto 16th December, 2016 from Hon'ble
Chairman, Rajya Sabha. But the deliberations could not be concluded within the
stipulated period and the Committee again sought extension of period upto 16th
February, 2017 to present its Report to the Parliament and request of the Committee
was acceded to by the Hon'ble Chairman, Rajya Sabha.
2. The Motor Vehicles Act, 1988 is the principal Act for regulating all the
activities related to Motor Vehicles in the country. It has been amended four times i.e.
in the year 1994,2000, 2001 and 2015 to adapt it to the technological upgradation
emerging in road transport, passenger, freight movement and in motor vehicle
management. Many provisions of the Act either have lost its sheen in present context
or there is a need to add more teeth to it especially vis-à-vis provisions pertaining to
increasing penalty to enforce road safety and also provisions for incorporating modern
technology. There is a need for amending the existing provisions to suit the present
requirement.
3. Ministry of Road Transport and Highways constituted a Group of Ministers

GoM) under the Chairmanship of Shri Yoonus Khan, Minister for PWD and Transport,
State Government of Rajasthan to deliberate on the issues facing the transport sector in
the country. GoM gave its interim reports and suggested a series of recommendations.
4. The Ministry has claimed that there is a need for bringing out changes in the
Principal Act. The Bill has given emphasis on road safety, computerization, enhanced
penalty for traffic offences.
5. In the year 2015, as per Ministry's information 1,46,000 people died in road
accidents and around 3 lakh people got injured. Road transport plays a vital role in the
economy of the country and Road Transport constitutes 4.5 percent of the GDP of the
country.
6. To address the issues faced by the transport sector, the Ministry had initiated the
Road Transport and Safety Bill. But, several States have expressed apprehensions with
regard to provisions relating to opening up of public transport as well as issues relating
to the control and regulations of permits and taxation. Ministry of Road Transport and
Highways has framed following guidelines which have to be given importance while
making the amendments in the Principal Act:-
(i) Good Samaritan law- It has been incorporated in the Bill with a view to
help those people who come forward after the accident and rescue and
help the victim should not be harassed.
(ii) Issue of learning License online
(iii) Registration of vehicles at dealer's point.
(iv) Accidental Insurance cover for the drivers of vehicles.
(v) Review of periodicity for renewal of driving licenses.
(vi) Liberalizing intra-city taxi permit system and other automobile
aggregation policy.
(vii) Steps for promoting low cost last mile connectivity.
(viii) Strengthening rural transport.
(ix) Strengthening public transport system.
7. During the deliberations of the meeting, the Committee also came across some
suggestions which are worth consideration and may be included in the Bill, which will
strengthen the Act further. Some of those points are as follows:
(i) Wearing of headgear/helmet may be made mandatory for a two-wheeler

rider, whether it is a 50 c.c. or 100 c.c. vehicle, if it is motorized then it
should be compulsory for the riders (both major & minor).
(ii) Mandatory test of competence must be fixed for driver.
(iii) States may be delegated some powers to punish dealers, if they indulge
in malpractices. (Section -56)
(iv) Government vehicles may be exempted from getting insurance cover
and the money saved from non-coverage should be spent on giving
claims to accident victims through making a road safety fund.
(v) Government may incorporate the provision for the manufacturers that
the strength of axle of goods vehicle may be kept at par with the load to
be carried by the vehicle.
(vi) Indian roads are currently not suitable for vehicles which can run on 200
km or 250 km/hour speed and hence vehicles may be made which can
better suit Indian road conditions. The provision in this regard may be
added in the Bill.
8. (1) This Act may be called the Motor Vehicles (Amendment) Act, 2016.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint and different dates may be appointed for
different States and any reference in this Act to the commencement of this Act shall, in
relation to a State, be construed as a reference to the coming into force of this Act in
that State.
Clause 1 provides for the short title of the Bill as “the Motor Vehicles
(Amendment) Act, 2016”, and seeks to provide for the commencement of the
provisions of the Bill from such date as may be notified by the Central Government
and different dates may be appointed for different States for different provisions of
the Bill.
Clause 2 reads
9. In the Motor Vehicles Act, 1988 (hereinafter referred to as the principal Act), in
section 2,
(i) for clause (1), the following clauses shall be substituted, namely:—
'(1) "adapted vehicle" means a motor vehicle either
specially designed and constructed, or to which alterations
have been made under sub-section (2) of section 52, for
the use of a person suffering from any physical defect or
disability, and used solely by or for such person;
(1A) "aggregator" means a digital intermediary or market place for a
passenger to connect with a driver for the purpose of transportation;
(1B) "area" in relation to any provision of this Act, means such area as
the State Government may, having regard to the requirements of that
provision, specify by notification in the Official Gazette;‟;
(ii) after clause (4), the following clause shall be inserted, namely:—
'(4A) "community service" means an unpaid work which a person is

required to perform as a punishment for an offence committed under this
Act;' ;
(iii) after clause (9), the following clause shall be inserted, namely:—
'(9A) "driver refresher training course" means the course referred to in
sub-section (2A) of section 19;'

(iv) after clause (12), the following clause shall be inserted, namely:—
'(12A) "golden hour" means the time period lasting one hour following a
traumatic injury during which there is highest likelihood of preventing death
by providing prompt medical care;
(v) clause (18) shall be omitted;
(vi) in clause (24), for the words "invalid carriage", the words "adapted
vehicle" shall be substituted;
(vii) in clause (26), for the words "invalid carriage", the words "adapted vehicle"
shall be substituted;
(viii) after clause (38), the following clause shall be inserted, namely:
— '(38A) "scheme" means a scheme framed under this Act;'
(ix) after clause (42), the following clause shall be inserted, namely:—
„(43A) "testing agency" means any entity designated as a testing agency

under section 110B;'
(x) in clause (49), after the word 'rests', the words 'or moves' shall be inserted.
Clause 2 seeks to amend section 2 of the Motor Vehicles Act, 1988(Act) relating to
definitions of certain expressions used in the Act such as, „medium passenger motor
vehicle‟, „motor car‟ and „weight‟ and to insert some new definitions in section 2, such
as, „adapted vehicle‟, „aggregator‟, „community service‟, „driver refresher training
course‟, „golden hour‟, „scheme‟ and „testing agency‟.
Clause 3 reads
10. After section 2A of the principal Act, the following section shall be inserted, namely:—
"2B. Notwithstanding anything contained in this Act and subject to such
conditions as may be prescribed by the Central Government, in order to promote
innovation and research and development in the fields of vehicular engineering,
mechanically propelled vehicles and transportation in general, the Central
Government may exempt certain types of mechanically propelled vehicles from the
application of the provisions of this Act." .
Clause 3 seeks to insert a new section 2B in the Act to provide flexibility to the Central
Government to exempt new technologies, inventions or innovations from the provisions
of the principal Act so as to give such technologies and innovations.
11 The Committee observes that the insertion of Clause 2B to include new

technologies, inventions and innovations in the Motor Vehicle Sector to develop
and update itself with the modern technologies is a welcome step. Modern
vehicular engineering will help in checking harmful emissions from the vehicles
and save the ecosystem.
12. Clause 4 reads in section 8 of the principal Act,—
(i) in sub-section (1), for the words "the licensing authority having jurisdiction
in the area", the words "any of the licensing authority in the State" shall be substituted;
(ii) in sub-section (2), for the words "and with such fee", the words "with
such fee and submit in such manner, including by electronic means"
(iii) in sub-section (3),—
(a) after the word "application", the words "to drive a transport
vehicle made" shall be inserted;
(b) the proviso shall be omitted;
(iv) in sub-section (4), in the proviso, for the words "invalid
carriage", the words "adapted vehicle" shall be substituted;
(v) in sub-section (5), for the words "passes to the satisfaction of
the licensing authority such test" the words "satisfies such
conditions" shall be substituted;
(vi) in sub-section (6), after the proviso, the following proviso shall be
inserted, namely:—
"Provided further that a licencing authority may issue a learner's licence
in electronic form and such manner as may be prescribed by the
Central Government."
Clause 4 seeks to amend section 8 of the Act to simplify the procedure for obtaining a
learner‟s licence. It seeks to enable an applicant to apply to any licensing authority in
the State, to use online means to submit the application, fee and other documents, and
allow the government flexibility in determining the eligibility to obtain a learner‟s licence.
It also seeks to provide for the issue of a learner‟s licence in electronic form.
13. The State of Karnataka raised the issue about amendment of Section 8 by
Clause 4 which provides the procedure for obtaining learner's license. It seeks to
enable an applicant to apply to any licensing authority in the State to use online means
to submit the application, the fee and other documents and allow the Government the
flexibility in determining the eligibility to obtain a learner's license. The State is
concerned that the issuance of learners license in electronic form without testing his
knowledge about driving license is not in favour of public interest. This facility will be
misused.
14. The Ministry has informed that this issue of learners' license online is to
enable the citizens of the country to get license in an easier way and also to avoid
rush at the RTOs.
15. The Committee was informed by many States‟ representatives that filling
up of online application and uploading of document need to be followed up by the
appropriate written test prescribed by the individual concerned at the identified
office premises. But the Committee feels that this amendment is a welcome step
which will enable speedy submission of application form and documents.
Learners license is not an address proof, the driving license is issued only after
proper verification. The Committee is afraid that online procedure of obtaining
learning license will be misused and people may get learner's driving license filling
up the wrong information online. The Committee recommends that this section
may be modified further to get rid off such possibilities if any, of misusing this
facility by the miscreants.
(i) insub-section (1), for the words "the licensing authority having
jurisdiction in the area", the words "any of the licensing authority in the State"
(ii) in sub-section (3), for the second proviso, the following proviso
shall be substituted, namely:—
"Provided further that a driving licence for driving an adapted vehicle
may be issued to the applicant, if the licensing authority is satisfied
that he is fit to drive such motor vehicle.";
in sub-section (4), the words "such minimum educational
(iii)
qualification as may be prescribed by the Central Government and" shall be
omitted;
(iv) in sub-section (5), in the proviso, after the words "last such test", the
words and figures "and such applicant shall be required to complete a remedial
driver training course from any school or establishment under section 12"
shall be inserted.
Clause 5 seeks to amend section 9 of the Act to simplify the procedure for the grant of a
driving licence. It seeks to enable an applicant to apply to any licensing authority in the
State, removes the requirement for minimum educational qualification as long as the
applicant holds a certificate from a driver training school or establishment. It also seeks
to provide that an applicant who fails the test of competence repeatedly shall be
required to undergo a remedial driver training course before such applicant can apply
again.
17. The State of Kerala has submitted before the Committee that in Clause 5
amending S.9 (4) - in the original Act, there is a provision for minimum educational
qualification for grant of driving license and it can be retained in the Bill.
18. One stakeholder put some important points regarding strengthening the
licensing system and suggested that Central Government should prescribe minimum
period for basic training. Along with driving certificate issued by a school or
establishment, applicant shall undergo mandatory test of competence at the licensing
centre. Bill should empower Central Government to formulate guidelines for
accreditation, monitoring and moderation of schools and establishments. State
Governments should formulate guidelines for regulation of training fees and license
fees.
19. In response, the Ministry has replied that the training imparted by a school or
establishment referred to in S.12 shall ensure that the driver can read signs and perform
logistical duty such as maintenance of driver logs, inspection of trucks and trailers,
submission of pre-trip and post-trip records, determination of discrepancies in
paperwork, effective communication to report safety hazards.
20. Moreover, under sub-Section (4) of S.9 schools and establishments which are
providing vocational training and skilling facilities are subject to regulatory oversight.
Hence, the training imparted will be of high quality covering all aspects of driving a
particular type of motor vehicle. The focus is not merely on the educational
qualifications but on better driving skills.
21. The Ministry has in their written submission said that under Section 9, Central
Government has the power to prescribe test of competence.
22 The Committee notes that the Govt. want to do away with minimum
educational qualifications prescribed for issuing a driving license.
23. The Committee feels that the person should be literate enough to read,
write and understand the road signage. The Committee is of the view that Central
Govt. should prescribe a mandatory test of competence for a new license holder
under Section 9 of the Motor Vehicle Act. The competency test prescribed should
be uniform throughout India and the State Governments should not be allowed to
further dilute the prescribed competency test criteria.
24. Clause 6 reads in section 10 of the principal Act, in sub-section (2), in
clause (c), for the words "invalid carriage", the words "adapted vehicle" shall
be substituted.
Clause 6 seeks to amend section 10 of the Act to replace the term „invalid
carriage‟ with the term „adapted vehicle‟.
25. The Committee agrees with the provision of this Clause to replace the
words 'invalid carriage' with adapted vehicle". Because people who are suffering
from physical disabilities may like to have their vehicle modified which may suit
to their requirements.
26. Clause 7 reads in section 11 of the principal Act, in sub-section (1), for
the words "the licensing authority having jurisdiction in the area", the words
"any licensing authority in the State" shall be substituted.
Clause 7 seeks to amend section 11 of the Act so as to allow a licence
holder to apply to any licensing authority in the State for the addition of
other classes or descriptions of motor vehicles to his or her driving
licence.
27. The State of Karnataka has expressed its reservation against clause 7 which
seeks to amend Section 11 of the Act so as to allow a license holder to apply to any
licensing authority in the State for the addition of other classes or descriptions of motor
vehicles to his/her driving license and have also stated that if amendment to Section 11
is promulgated section 28 (2) (a) and s. 65 (2) (b) are required to be amended after the
implementation of Saarthi-IV and Vahan-IV for central repository.
28. The Committee notes that India is a fast moving country towards
digitization and information technology revolutions. Internet has removed all sorts
of geographical boundaries and enables the citizens to operate the network from
anywhere in the country. The Government should adopt their own mechanism to
check the identity proof and veracity of other documents physically before issuing
the driving license.
29. The Committee agrees with the substitution of words "the licensing
authority having jurisdiction in area" with the words "any licensing authority in
the State". Every person has a residence/identity proof where he stays and he may
get the driving license from any licensing authority in the State at this age of
Internet. The Committee strongly feels that giving a license to a person after
ascertaining his identity from anywhere in the State will not only save his time and
money but also remove the existing bottleneck. The Committee, therefore,
recommends that the existing words “the licensing authority having jurisdiction in
the area” must be substituted with the word “any licensing authority in the State”.
30. Clause 8 reads in section 12 of the principal Act, after sub-section (4), the
following sub-sections shall be inserted, namely:—
"(5) Notwithstanding anything contained in any other provision,
where any school or establishment has been accredited by a body notified
by the Central Government under any other law for the time being in force,
any person who has successfully completed a training module at such school
or establishment covering a particular type of motor vehicle shall be eligible
to obtain a driving licence for such type of motor vehicle.
(6) The curriculum of the training module referred to sub-section (5)
shall be such as may be prescribed by the Central Government and the
Central Government may make rules for the regulation of such schools or
establishments.".
Clause 8 seeks to amend section 12 of the Act to allow applicants who
have obtained specialized training that has been devised by the Central
Government, from accredited schools or establishments, to drive without
being required to meet other requirements e.g. driving with light motor
vehicle for at least one year before being granted a learner‟s licence to
drive a transport vehicle.
31. Institute of Public Health submitted that there is a need for improvement in the
current driving license system. Another stakeholder suggested to omit sub section 5 of
Section 12 which allows applicants to obtain licence of a certain category of vehicles
based on a certificate from an established school-such provision can lead to issuance of
an HMV licence to a fresh applicant, without any test of competence, who is
theoretically trained but lacks practical experience of driving any kind of motor vehicle
on the road prior to obtaining the HMV licence. There is room for establishment, not
adequately regulated, to issue certificates of training.
32. State of West Bengal raised the query that proposed S.12 (5) envisages
important role for driver training schools accredited by a body notified by the Central
Government. It is not clear why accreditation by a body notified by the State
Government will not receive equal and concurrent authority. Formation of training
modules, notification and accreditation of driver training schools should remain under
the jurisdiction of State.
33. The Ministry responded that under Section 12 as amended, the Central
Government may prescribe the curriculum for training of drivers. Such curriculum will
improve driver training and thus strengthen road safety. The Ministry further submitted
that under sub-section (5) the applicant would be required to undertake training from an
accredited establishment. If an establishment is found to issue certificate of training
without providing the training as mandated in the curriculum prescribed by the Central
Government or violates rules and regulations made by the Central Government under
sub-section (6), then such establishment shall lose its accreditation.
34. The curriculum prescribed by the Central Government shall provide adequate
training, including practical training as may be prescribed, to ensure that applicants are
able to drive HMVs on roads in a safe manner.
35. The provision is expected to address the severe national shortage of competent
long haul HMV drivers and thus improve logistics efficiency in the country.
36. In response, the Ministry has submitted that the amendment Bill does not dilute
the authority of the State Government to license and regulate driver training school
under S.12. This is to cover the institutions created under skill Development
Programme using approved qualification curriculum.
37. The Committee observes that if a person has already undergone a
specialized training prescribed by the Central Government then he may be given
exemption from meeting other requirements viz. condition of driving of light
motor vehicle for one year before granting a license to drive transport vehicle.
38. The Committee notes the assurance given by the Central Government that
the Clause does not dilute the authority of the State Governments to issue license
and regulate driving schools. The Committee also notes that India is a big country
with varying geographical conditions necessitating rules and regulations required
to suit the local conditions which can be better addressed by the concerned State
Governments. Therefore, Committee recommends that every step should be made
to strengthen the State Governments in regulating driving schools.
39. Clause 9 reads n section 14 of the principal Act, in sub-section (2),—
(i) in clause (a),—
(A) for the words "three years", the words "five years" shall be
substituted;
(B) in the proviso, for the portion beginning with the words "one year" and
ending with the word "and" the words "three years and renewal thereof shall be
subject to such conditions as the Central Government may prescribe; and", shall be
substituted;
(ii) for clause (b), the following clause shall be substituted, namely:—
"(b) in the case of any other licence, subject to such conditions as the
Central Government may prescribe, if the person obtaining the licence,
either originally or on renewal thereof,—
(i) has not attained the age of thirty years on the date of issue or,
renewal thereof, be effective until the date on which such person
attains the age of forty years; or
(ii) has attained the age of thirty years but has not attained the
age of fifty years on the date of issue or, renewal thereof, be effective
for a
period of ten years from the date of such issue or renewal; or
has attained the age of fifty years but has not attained the age
(iii)
of fifty-five years on the date of issue or, renewal thereof, be effective
until the date on which such person attains the age of sixty years; or
(iv) has attained the age of fifty-five years on the date of issue or as
the case may be, renewal thereof, be effective for a period of five years
from the date of such issue or renewal.";
(iii) the proviso shall be omitted.
Clause 9 seeks to amend section 14 of the Act to increase the length of
time for which a driving licence shall remain valid.
40. The State of Kerala in their submission before the Committee stated that
amending Section 14(2) under Clause 9 will create confusion regarding the period of
validity of license.
41. The Ministry has replied that this provision extends the validity of licenses and
will reduce the office work and is citizen friendly.
42. The Committee is happy to note that the Bill seeks to amend section 14(2)
of the Motor Vehicle Act, 1988 which will increase the period from 3 years to 5
years and it has further categorized for the renewal of the driving license in the
age group of 30s, 40s and 50s. The Committee feels it's a welcome step.
(i) in sub-section (1), in the first proviso, for the words "more than thirty days",
the words "either six months prior to date of its expiry or within six months" shall be
substituted;
(ii) in sub-section (3), for the words "thirty days", the words "six months"
shall be substituted; and
(a) for the words "thirty days", the words "six months" shall be substituted; and
(b) in the second proviso for the words "five years after the driving licence has
ceased to be effective, the licensing authority may", the words "six months
after the driving licence has ceased to be effective, the licence authority
shall" shall be substituted.
Clause 10 seeks to amend section 15 of the Act to allow a licence holder to apply for
renewal of licence any time in a window of six months before expiry of licence and six
months after. It also seeks to provide that any applicant who attempt to renew his or
her driving licence more than six months after expiry shall have to undergo a test of
competence.
44. The State of Kerala in their submission added that in Clause 10 amending
Section 15(4), the proposed period of 'six months' may be enhanced to at least 2 years.
Since the situation in Kerala is different from other States, a large number of people are
working abroad and they visit the State once in 2 or 3 years only. At present they get 5
years to renew their license but in the proposed amendment, they will get only 6
months.
45. The Ministry has replied that this provision extends the renewal to be permitted
to six months as against present provision of one month before or after the expiry.
Hence, it is beneficial provision to citizens of India.
46. The Committee appreciates the move taken by the Ministry to increase the
time period of renewal of driving license before and after its expiry date. The
Committee feels that this change will help those people who go abroad and return
after a gap of substantial period. The Committee further recommends that
provision for renewal of license for those people who go abroad for longer period
may get some extra relief i.e. time-period of one year before and after the expiry of
the license for getting their license renewed.
47. Clause 11 read in section 19 of the principal Act,—
(iv) after sub-section (1), the following sub-section shall be inserted,
namely:—
"(1A) Where a licence has been forwarded to the licensing authority under
sub-section (4) of section 206, the licensing authority, if satisfied, after giving
the holder of the driving licence an opportunity of being heard, either discharge
the holder of a driving licence or, it may for detailed reasons recorded in writing,
make an order disqualifying such person from holding or obtaining any licence to
drive all or any class or description of vehicles specified in the licence—
(a) for a first offence, for a period of three months;
(b) for a second or subsequent offence, with revocation of the driving
licence of such person:
Provided that where a driving licence is revoked under this section, the name of
the holder of such driving licence may be placed in the public domain in such
manner as may be prescribed by the Central Government.";
(v) in sub-section (2),—
(a) after the word, brackets and figure "sub-section (1)", the words,
brackets, figure and letter "or sub-section (1A)" shall be inserted;
(b) for the proviso, the following proviso shall be substituted,
namely:—
"Provided that the driving licence shall be returned to the holder at
the end of the period of disqualification only if he successfully
completes the driver refresher training course.";
(vi) after sub-section (2) the following such sections shall be inserted,
namely:—
"(2A) The licence holder whose licence has been suspended shall
undergo the driver refresher training course from a school or
establishment licenced and regulated under section 12 or such other
agency, as may be notified by the Central Government.
(2B) The nature, syllabus and duration of the driver refresher
training course shall be such as may be prescribed by the Central
Government.”;
(vii)in sub-section (3) after the word, brackets and figure "sub-section
(1)", the
words, brackets, figure and letter "or sub-section (1A)" shall be inserted.
Clause 11 seeks to amend section 19 of the Act to provide for disqualification from
holding driving licence and revocation of driving licence of drivers found to commit
certain offence, such as, jumping red lights, driving under the influence of alcohol and
drugs, driving licence using a mobile phone, driving in the wrong way etc. It also seeks
to provide that such licence holders shall be required to complete a driver refresher
training course, as prescribed by the Central Government.
48. Regarding amendment of Section 19 the Ministry has replied that the licensing
authority shall have the power to disqualify a person from driving, if he or she has
committed certain offences. For repeat offences, the driving license can be revoked.
The section also provides for driver refresher training courses to enable drivers to
unlearn bad driving habits. The Ministry further says that Bill under Section 19
provides for driver refresher training courses for drivers found to indulge in bad driving
behavior such as jumping red lights, using mobile phones while driving, dangerous
driving etc. This will ensure good driving behavior from drivers of transport vehicles.
49. The Committee is of the view that wrong driving of motor vehicles is
dangerous not only for the occupants of the vehicle but it may also affect adversely
the safety of other persons or vehicles on the road and brings others‟ lives under
peril. The Committee feels that strong penal deterrence is necessary to ward off
wrong doers from creating havoc on the road.
50. Clause 12 reads After section 25 of the principal Act, the following
section shall be inserted, namely:—
"25A. (1) The Central Government shall maintain a National Register of

Driving Licences in such form and manner as may be prescribed.
(2) All State Registers of Driving Licences shall be subsumed under the
National Register of Driving Licences by a date to be notified by the Central
Government.
(3) No driving licence issued, or renewed, under this Act shall be valid
unless it has been issued a unique driving licence number under the National
Register of Driving Licences.
(4) All State Governments and licensing authorities under this Act shall
transmit all information including contained data in the State Register of
Driving Licences in such form and manner as may be prescribed by the
Central Government.
(5) The State Governments shall be entitled to access the National
Register and update their records in such manner as may be prescribed by the
Central Government.”.
Clause 12 seeks to insert a new section 25A in the Act to establish a
National Register of Driving Licences containing data on all driving
licences issued throughout India and facilitate the grant of licences in a
transparent and efficient manner. It also seeks to enable the State
Governments to transmit all information contained in the State Register
of Driving Licences to the Central Government and to update the
National Register in a manner to be prescribed by the Central
Government. It also seeks to subsume all State Registers into the National
Register by a date to be notified by the Central Government.
51. A stakeholder suggested that the National register of driving licenses should
provide for mandatory use of biometric information to reduce the likelihood of a driver
obtaining multiple licenses with false information. The use of biometric information
can keep a check on the duplicity of licenses.
52. On this, the Ministry has replied that Sub-section (1) of the proposed section
25A states that the Central Government shall maintain the National Register of Driving
Licenses in a form and manner that it may prescribe.
53. The Central Government may provide for the use of biometric information
through rules made under this provision, if States request for such a provision.
54. The Ministry has further added that licensing system all over the country is
becoming online and the data is directly getting recorded into the National Register.
States have already adopted the VAHAN and SARATHI applications. So data is being
shared and if, there is change, it gets reflected.
55. The Committee is not aware of the factual provision so far about the
National Register of Driving Licenses. The Committee feels that before
implementing the proposed changes at national level, every State has to be
electronically equipped with the software of required information. The
Committee, while discussing with various States on the matter, found that many
States are asking for more time i.e., 2-3 years for making their offices
electronically equipped. The Committee appreciates the steps taken by the
Ministry to incorporate the instant section. But, at the same time recommends
that the Ministry should extend help viz. financial, logistics and trained
manpower to various States (when States ask for) to implement this section
effectively.
56. The Committee hope that the modalities to be prescribed by the Central
Government to update the National Register would be worked out by the Central
Government in consultation with the States.
57. In section 26 of the principal Act,—
in sub-section (1), for the words "the following particulars, namely",
(i)
the words "particulars, including" shall be substituted;
(ii) sub-section (2), shall be omitted.
Clause 13 seeks to amend section 26 of the Act to omit the requirement on the part of the
State Government to supply the Central Government with a copy of the State Register of
Driving Licences.
58. Clause 14 says in section 27 of the principal Act,—
(i) after clause (d) the following clause shall be inserted, namely:—
"(da) the form and manner in which a licensing authority may
issue a learner's licence under sub-section (6) of section 8;"
(ii) after clause (j) the following clauses shall be inserted, namely:—
"(ja) the curriculum of training modules and the regulation of

schools and
establishments under sub-section (6) of section 12;
(jb) the conditions for the renewal of licence to drive transport
vehicles carrying goods of dangerous or hazardous nature and other
motor vehicles under clause (a) and clause (b) of sub-section (2) of
section 14;";
(iii) after clause (n) the following clauses shall be inserted, namely:—
"(na) the manner of placing in the public domain of the name of the licence holder
as referred to in sub-section (1A) of section 19;
(nb) providing for the nature, syllabus and duration of the driver
refresher training course as referred to in sub-section (2B) of section 19;
(iv) after clause (o), the following clause shall be inserted, namely:—
"(oa) all or any of the matters referred to in section 25A;”;

(v) in clause (p), after the word, brackets and figure "sub-section (1)",
the words brackets and figure "and sub-section (2)" shall be inserted.
Clause 14 seeks to amend section 27 of the Act in consequence of the
amendments proposed in Chapter II of the Act.
59. The Committee hopes that the curriculum of training modules, regulation
of schools and establishments to be set up in the States and the training modules
itself should be formulated in consultation with the State Governments. The
Committee recommends that appropriate guidelines may be formulated to
transport the goods of hazardous and dangerous nature and also for specialized
training programme for those drivers who are involved in driving of heavy
oversized vehicles.
60. The Committee recommends that there should be a proper training by the
Government for those drivers who are involved in driving heavy vehicles (Mega
Vehicles) and also carrying goods of hazardous and dangerous nature.
61. Clause 15 says In section 40 of the principal Act, for the words "a registering
authority", the words "any registering authority in the State" shall be substituted.
Clause 15 seeks to amend section 40 of the Act to allow an owner to register his
motor vehicle by making an application to any registering authority in the State.
62. The Committee appreciates the initiative taken by the Ministry and hope
that in a digitized world the geographical limits should not be imposed on citizens.
(i) in sub-section (1), after the proviso, the following proviso shall be
"Provided further that in the case of a new motor vehicle, the application for
registration in the State shall be made by the dealer of such motor vehicle, if the new
motor vehicle is being registered in the same State in which the dealer is situated.";
(ii) in sub-section (3),—
(a)for the words "to the owner of a motor vehicle
registered by it a certificate of registration", the words "a
certificate of registration in the name of the owner" shall be
substituted;
(iii) in sub-section (6), the following proviso shall be
inserted, namely:— "Provided that in case of a
new motor vehicle, the application for the
registration of which was made under the second proviso to sub-
section (1),
such motor vehicle shall not be delivered to the owner until
such registration
mark is displayed on the motor vehicle in such form and
manner as may prescribed by the Central Government.";
(iv) in sub-section (7),—
(a) the words "other than a transport vehicle" shall be
omitted; and
(b) after the words " date of issue of such certificate", the
words "or for
such period as may be prescribed by the Central Government"
shall be inserted;
(v) in sub-section (8), the words "other than a transport vehicle",
shall be omitted;
(vi) in sub-section (10),—
for the words "for a period of five years", the words " for
(a)
such period,
as may be prescribed by the Central Government" shall be
substituted;
(b) the following proviso shall be inserted, namely:—
"Provided that the Central Government may
prescribe different period of renewal for different
types of motor vehicles.";
(vii) in sub-section (11),—
for the words and figures " section 177, such amount
(a)
not exceeding
one hundred", the words, brackets, figures and letter " sub-
section (1) of section 192B, such amount not exceeding
five thousand" shall be substituted; and
in the proviso, for the word and figures "section
(b)
177", the words brackets, figures and letter "sub-section
(1) of section 192B" shall be substituted;
(viii) after sub-section (11), the following sub-section shall be inserted,
namely:—
"(11A) If a dealer fails to make an application under the second
proviso to sub-section (1), the registering authority may, having regard to
the circumstances of the case, require the dealer to pay, in lieu of any
action that may be taken
against him under sub-section (2) of section 192B, such amount not
exceeding fifteen thousand rupees as may be prescribed under sub-
section (13):
Provided that an action under sub-section (2) of section 192B shall be
taken against the dealer where the dealer fails to pay the said amount.";
(ix) for sub-section (12), the following sub-section shall be substituted,
namely:—
"(12) Where the owner or the dealer has paid the amount under
sub- section (11) or sub-section (11A), as the case may be, no action
shall be taken against him under sub-section (1) or sub-section (2) of
section 192B, as the case may be.";
(x) for sub-section (13), the following sub-section shall be substituted,
namely:—
"(13) For the purposes of sub-section (11) and sub-section
(11A), the State Government may prescribe different amounts having
regard to the period of delay on the part of such owner or dealer in
making an application under sub- section (1) or sub-section (8), as the
case may be.".
Clause 16 seeks to amend section 41 of the Act to provide for the
registration of new motor vehicles by dealers and provide for penalties
for dealers who fail to register a new motor vehicle. It also seeks to
provide that new motor vehicles shall be delivered to the customers only
after the affixation of the registration mark. It also seeks to empower the
Central Government to prescribe the validity of a registration certificate
for different classes of motor vehicles.
64. The State of Karnataka submitted before the Committee that the Registering
Authorities of the Transport Department in the State who are public servants, whose
orders are challengeable under section 57 dealing with appeals of the Act, and
therefore, these officers are Authorities within the meaning of the Act and also under
Article 12 of the Constitution, and they are accountable to the accuracies of the
registered documents. Government authorities, that is, RTOs are accountable for any
malfunctioning; empowering vehicle dealers who have a profit motive of promoting
their sales, they may cheat the Government or customers by violating the rules and
regulations. As per section 66 of the proposed Act, every transport vehicle needs
permit for its operation in any public place. Further, for the purpose of levy of tax in
respect of transport vehicle, inspection by the Registering Authority is mandatory since
taxation is different for different classes of transport vehicles. For example, tax on
floor area, tax on sitting capacity, tax on gross combination weight, gross vehicle
weight etc. Hence, empowering the dealer as Registering Authorities may lead to
misuse of power and fraudulent issue of RCs which is not in public interest.
65. The Committee notes that a number of State Governments are unhappy
with the functioning of vehicle dealers as they are under-invoicing, overcharging
customers on logistics/handling charges, taking extra insurance premiums and
indulging in other malpractices. The Committee also notes that the vehicle dealer
is an agent of the manufacturer and shall not be made an instrumentality of the
Government to perform statutory functions and quasi judicial powers of
registering authority. At the same time the Committee notes that RTOs
throughout the country are overburdened and understaffed. Moreover, they are a
den of corruption. The Committee, therefore, appreciates that the delegation of
powers to dealers for registration of vehicles may alleviate a lot many problems of
the vehicle owners. However, the Committee recommends that strict guidelines
may be prescribed for the functioning of the vehicle dealers. The Committee also
recommends that the registration of vehicle by dealers may be made optional to
the States depending on the State‟s specific requirements.
66. Clause 17 says -17.For section 43 of the principal Act, the following section
“43. Notwithstanding anything contained in section 40, the owner of a
motor vehicle may apply to any registering authority or other authority as
may be prescribed by the State Government to have the motor vehicle
temporarily registered and such authority shall issue a temporary certificate
of registration and temporary registration mark in accordance with such rules
as may be made by the Central Government”.
Clause 17 seeks to amend section 43 of the Act to enable the Central Government
to make rules for the issue of temporary certificates of registration and temporary
registration marks and it provides for an application for temporary registration to be
made to a registering authority or any other authority as may be prescribed by the State
Government.
67. West Bengal deposed before the Committee that proposed amendment to S.43
authorising Central Government to frame rules for temporary registration is also
lopsided. State Government should also have power to frame such rules and enforce
them.
68. The Ministry has replied that temporarily registered motor vehicles may be
transported across State boundaries. Hence uniform rules for the entire country are
required to be framed by the Central Government.
69. The Committee notes the comments of the Government. The Committee
also recommends that the State governments should be permitted to issue
temporary registration certificate which can be applicable within the State. The
Committee is of the view that there should be a time limit of just one month for
validity of a temporary registration certificate and it should be uniform
throughout India.
70. Clause 18 says For section 44 of the principal Act, the following section shall be
substituted, namely:—
"44.(1) Subject to such terms and conditions as may be prescribed by the
Central Government in this behalf, a motor vehicle sold by an authorised
dealer shall not
require production before a registering authority for the purposes of
registration for the first time.
(2) Subject
to such terms and conditions as may be prescribed by the State
Government, a person in whose name a certificate of registration has been issued
shall not be required to produce the vehicle registered or transferred before a
register authority.".
Clause 18 seeks to amend section 44 of the Act to remove the requirement of the
production of a motor vehicle before the registering authority at the time of
registration.
Clause 18
71. One stakeholder suggested that amendment in section 44 is inappropriate.
Provision should be made for appearance of buyer and seller before the registering
authority.
72. The Ministry has replied that this has been included as per the recommendations
of the GoM, which were made after great deliberation on their part. Some States like
Delhi have successfully implemented similar process.
73. This would reduce corruption and provide a much-needed relief to the
customers. This also streamlines the process of registration and clamps down on the
practice of using new vehicles in their unregistered state.
74. The requirement of production of a new vehicle does not add any value to the
entire process. Rather this acts as a tool for harassment.
75. The Committee notes that Delhi which is having the largest vehicular
population is implementing the same scheme effectively. However, the Committee
was informed that Delhi has implemented the scheme because it has inadequate
officers to manage the vehicle registration whereas in many other States they have
required infrastructure to deal with the vehicle registration. The Committee,
therefore, recommends that this proposal in Clause 18 shall be made optional for
the States to decide on the basis of the infrastructure and manpower available and
the Committee further recommends that it should not be made as mandatory to
be followed by all the States. The Committee also recommends that it may be
implemented in such a way that the regional and local needs are effectively
addressed and the dealers may not be able to manipulate the system or vehicle
configurations to suit their needs.
76. Clause 19 says. in section 49 of the principal Act,—
(i) sub-section(1), for the words "registering authority, to that other
registering authority" the words "State, to any registering authority in that
State" shall be substituted;
(ii) after sub-section (1), the following sub-section shall be inserted,
namely:—
"(1A) The intimation under sub-section (1) may be sent to the
appropriate registering authority in electronic form along with the
electronic form of such documents, including proof of authentication
in such manner as may be prescribed by the Central Government.";
(iii) in sub-section (2), for the words "one hundred rupees", the words
"five
hundred rupees" shall be substituted.
Clause 19 seeks to amend section 49 of the Act to simplify the process for
recording change of residence on registration certificate by means of online application
process. It also seeks to enhance the penalty for failure to provide the new information in
a timely manner.
77. Some States and other private stakeholders strongly objected about the
amendment to section 49 of the Act saying that it takes away the powers of officers to
receive fees via electronic mode unless so authorized by the State Government.
78. The Ministry has replied that the amendment to section 49 merely enables
payments to be made through the electronic mode.
79. The Committee observes that the change in address of vehicle owners is
very common and it is the responsibility of the owner to intimate the authority in
time. But, in the new amendment States are not involved in substitution of the
existing addresses. The Committee recommends that the State Government may
also be made part of the decision making body while making the final form of
proof of authentication. The Committee recommends that the Authority which
originally registered the vehicle should be involved while making the correction
also.
(i)in sub-section (1), for the second proviso, the following proviso
“Provided further that the Central Government may prescribe
specifications, conditions for approval, retrofitment and other related
matters
for the alteration of motor vehicles and in such cases, the warranty
granted by the
manufacturer shall not be considered as void for the purposes of such
alteration or retrofitment.”;
namely:—
"(1A) A manufacturer of a motor vehicle shall on the direction
issued by
the Central Government, alter or retrofit safety equipment, or any other

equipment
in accordance with such standards and specifications as may be
specified by the Central Government.";
(iii) for sub-section (2), the following sub-section shall be substituted,
namely:—
"(2) Notwithstanding anything contained in sub-section (1), any
person
may, with the subsequent approval of the registering authority, alter or cause
to
be altered any vehicle owned by him to be converted into an adapted
vehicle:
Provided that such alteration complies with such conditions as
may be imposed by the Central Government.";
(iv) insub-section (3), the words, brackets and figure "or by reason of
replacement
of its engine without such approval under sub-section (2)" shall be omitted.
Clause 20 seeks to amend section 52 of the principal Act to allow owners to alter
or retrofit equipment to their motor vehicle and provides that the warranty granted by
the manufacturer shall not be declared void when such alteration or retrofitment is
done in accordance with specifications laid down by the Central Government. It also
empowers the Central Government to require manufacturers to retrofit safety and
emissions control equipment on motor vehicles. It also seeks to enable the conversion of
a motor vehicle into an adapted vehicle for use by persons with disabilities.
81. States and other stakeholders submitted before the Committee that S.T.U.s will
face problems since the amendment of section 52 has removed the exception for
persons owning more than 10 transport vehicles under which they were allowed to
exchange engines between such vehicles in the fleet.
82. The Committee feels that under Clause 20, to make alteration or retro
fitment in a vehicle should commensurate not only with the need of the owner but
the attention may also be drawn to the effect of such changes on environment as
well as traffic. A vehicle owner can change the fittings of his vehicle to suit his
commercial need but at the same time changes carried out by the Vehicle owner
should not play havoc on the road. The Committee recommends that the Ministry
may give due care while formulating the rules for change or retrofitment in the
vehicle. The Committee welcomes if the Ministry allows the person to get his
vehicle converted into adapted vehicle as per his requirement on medical ground.
83. Clause 21 in section 55 of the principal Act, after sub-section (5), the
following sub-section shall be inserted, namely:—
"(5A) If any registering authority or other prescribed authority has reasons to
believe that any motor vehicle within its jurisdiction has been used in the
commission of an offence punishable under section 199A, the authority may, after
giving the owner an opportunity of making a representation in writing, cancel the
certificate of registration of the vehicle for a period of one year:
Provided that the owner of the motor vehicle may apply for fresh
registration in accordance with the provisions of section 40 and section
41."
Clause 21 seeks to amend section 55 of the Act to provide for the cancellation of
the registration of a motor vehicle which has been used by a juvenile in contravention
of the provisions of the principal Act.
84. The Committee observes that the proposed amendment is a step in right
direction. It discourages the owner to hand over their vehicle to an unauthorized
person who is not supposed to drive the vehicle. Such person may cause accident
harming others‟ life and property besides committing an offence which is
punishable under S.199-A.
(i) in sub-section (1), after the proviso, the following proviso shall be
"Provided further that no certificate of fitness shall be granted to a vehicle, after
the 1st day of October, 2018, unless such vehicle has been tested at an automated
testing station.";
(ii) for sub-section (2), the following sub-section shall be substituted,
namely:—
"(2) The "authorised testing station" referred to in sub-section (1) means
any facility, including automated testing facilities, authorised by the State
Government, where fitness testing may be conducted in accordance with the
rules made by the Central Government for recognition, regulation and control of
such stations.";
(iii) in sub-section (4), for the proviso, the following provisos
"Provided that no such cancellation shall be made by the
prescribed authority unless,—
(a) such prescribed authority holds such technical
qualification as may be prescribed by the Central Government
and where the prescribed authority does not hold the technical
qualification, such cancellation is made on the basis of the report
of an officer having such qualification, and
(b) the reasons recorded in writing cancelling a
certificate of fitness are confirmed by an authorised testing
station chosen by the owner of the vehicle whose certificate of
fitness is sought to be cancelled:
Provided further that if the cancellation is confirmed by the
authorised testing station, the cost of undertaking the test shall be
borne by the owner of the vehicle being tested and in the alternative by
the prescribed authority.";
(iv) after sub-section (5), the following sub-sections shall be inserted,
namely:—
"(6) All transport vehicles with a valid certificate of fitness issued
under this section shall carry, on their bodies, in a clear and visible
manner such distinguishing mark as may be prescribed by the Central
Government.
(7) Subject to such conditions as the Central Government may
prescribe, the provisions of this section may be extended to non-
transport vehicles.".
Clause 22 seeks to amend section 56 of the Act to provide for automated testing
facilities at authorized testing stations for grant of certificates of fitness to motor
vehicles and to ensure that no certificate of fitness shall be granted after October 1
2018 unless the motor vehicle is tested at such automated testing facilities. It also
empowers the Central Government to direct other motor vehicles, in addition to transport
vehicles, to carry certificates of fitness. It also seeks to provide that transport vehicles
with valid certificates of fitness shall carry clear visible distinguishable marks on their
bodies.
86. It was submitted before the Committee that the move to amend section 56 of the
Act to require all vehicles, transport and non-transport, to carry certificates of fitness is
unwarranted since non-transport vehicles are engaged in public service. Moreover,
sub-section (2) of the amended provision allows the owner of a vehicle to choose the
testing station of his choice when his vehicle is found to be non-compliant with fitness
standards. This defeats the purpose of inspecting the vehicle for reasons of road safety.
87. The Ministry has replied that the requirement of testing at automated testing
stations is to ensure objectivity in the fitness certification and to reduce corruption.
88. These testing stations have to be authorized by the State Government.
89. Non-transport vehicles are not mandated to undergo fitness testing. Only an
enabling provision has been provided and early implementation would help the cause of
road safety.
90. The Committee after hearing various States and other stake holders on the
subject came to the conclusion that cut off date for implementing the testing for
vehicles from authorized testing stations w.e.f. 1st October, 2018 is not acceptable
to many States. The States have requested the Committee to pursue their request
to the Ministry to extend the date for a further period. Many of the States have
submitted to the Committee that they may not be ready with the testing stations
by October, 2018. The representative of the State of Uttar Pradesh submitted to
the Committee that entire State has just one automated testing station. The
Committee understands that every State has its own problems to deal with and it
will certainly take time to switch over to automated testing stations. The
Committee recommends that Ministry may take States into confidence to
implement this procedure when they get automated stations installed in sufficient
number in each of the RTOs in their respective States in a fixed time-frame. The
Committee notes that the idea is good but its implementation should be deferred
till such time all the States are ready with adequate numbers of testing stations.
The Central Govt. may, therefore, notify a suitable date (which may even be
different for different States) by Executive Orders by which a State may enforce
these provisions.
91. The Committee is surprised to see Clause 7 of the proposed amendment in
Section 56 as it is saying that provision of this Section may be extended to non-
transport vehicles also. Use of non-transport vehicles is quite different from the
use of transport vehicles. The same Rule may not be applied to non-transport
vehicle also. The Committee thinks that it will create problems for public. The
Committee accordingly recommends the deletion of Sub Clause 7.
92. Clause 23 says that in section 59 of the principal Act, after sub-section (3), the
"(4) The Central Government may, having regard to the public safety,
convenience, protection of the environment and the objects of this Act,
make rules prescribing the manner of recycling of motor vehicles and parts
thereof which have
exceeded their life.".
to make rules for the recycling of motor vehicles and motor vehicle parts at the end of
their life.
93. The Committee feels that recycling of outdated and obsolete vehicle
material by scientific method is the need of the hour. The Committee
recommends that the Central Government may formulate a comprehensive policy
for recycling of outdated Motor Vehicles keeping in mind the protection of
environment and public safety.
94. Clause 24 says that after section 62 in the principal Act, the following sections
shall be inserted, namely:—
"62A. (1) No registering authority shall register any motor vehicle that
contravenes any rule made under clause (a) of sub-section (1) of section
110.
(2) No prescribed authority or authorised testing station shall issue a
certificate of fitness under section 56 to any motor vehicle that contravenes
any rule made under section 110.
62B. (1) The Central Government shall maintain a National Register

of Motor Vehicles in such form and manner as may be prescribed by it:
Provided that all State Registers of Motor Vehicles shall be subsumed
under the National Register of Motor Vehicles by such date as may be
notified in the Official Gazette by the Central Government.
(2) Nocertificate of registration issued, or renewed, under this Act shall
be valid unless it has been issued a unique registration number under the
National Register of
Motor Vehicles.
(3) In order to maintain the National Register of Motor Vehicles, all
State Governments and registering authorities under this Act shall transmit
all information and data in the State Register of Motor Vehicles to the
Central Government in such form and manner as may be prescribed by the
Central Government.
(4) State Governments shall be able to access the National Register of
Motor Vehicles and update records in accordance with the provisions of this
Act and the rules made by the Central Government thereunder."
Clause 24 seeks to insert new provisions, viz., sections 62A and 62B in the Act.
Section 62A seeks to prohibit the registration of oversized vehicles and issuance of
certificates of fitness to such vehicles. Section 62B seeks to establish the National
Register of Motor Vehicles that shall contain data on all motor vehicles registered
throughout India. It also provides that no certificate of registration shall be issued or
renewed unless it has been issued a unique registration number under the National
Register. It also enable the State Governments to transmit information and data
contained in the State Registers of Motor Vehicles to the National Register and update
the National Register in accordance with rules as may be prescribed by the Central
Government.
95. The State of Maharashtra raised the issue of Unique Registration Number under
the National Register and hoped that this should not be another additional number
because the present system of giving registration numbers, which is in the case of
Maharashtra is MH-04 and like that. So the same number may also be considered and
States should not have too many numbers for the same vehicle which will unnecessarily
increase the complication. Committee hopes that the Government will consider the
concern of the States to protect their identity while formulating new scheme of
numbers.
96. The Committee hopes that the Government will consider the concern of the
States and protect their identity while formulating new scheme of number for
vehicles.
97. The Committee welcomes the step of maintaining a National Register of
Motor Vehicles.
(i) in sub-section (1), for the words "the following particulars,
namely", the words "particulars, including" shall be substituted;
(ii) for sub-section (2), the following sub-section shall be
"(2) Each State Government shall supply the updated details of the State
Register of Motor Vehicles to the Central Government in such form as the Central
Government may prescribe.";
(iii) after sub-section (3) the following sub-section shall be inserted, namely:—
"(4) All State Registers of Motor Vehicles shall be subsumed under the
National Register of Motor Vehicles by such date as may be notified by the
Central Government."
to prescribe the form in which a State Government shall supply the updated details of the
State Register of Motor Vehicles to the Central Government.
99. The Committee notes the proposed amendment.
(iv) after clause (d) the following clause shall be inserted, namely:—
"(da) providing for the period of validity of a certificate of registration
under sub-section (7) of section 41;";
(v) after clause (e) the following clause shall be inserted, namely:—
"(ea) the period of renewal of certificate of registration of different types
of motor vehicles under sub-section (10) of section 41;";
(vi) after clause (f) the following clauses shall be inserted, namely:—
"(fa) the issue of temporary certificate of registration and temporary
registration mark under section 43;
(fb) the terms and conditions under which a motor vehicle sold by an
authorized dealer shall not require production before a registering authority
under sub-section (1) of section 44;";

(vii) after clause (j) the following clause shall be inserted, namely:—
"(ja) the form and manner for the electronic submission of the
intimation of change of address, documents to be submitted along with
such intimation
including proof of authentication under sub-section (1A) of section 49;";
(viii) after clause (l) the following clause shall be inserted, namely:—
"(la) specifications, conditions for approval, retrofitment and other
related matters for the alteration of motor vehicles under sub-section (1) of
section 52;
(lb) the conditions for the alteration of any motor vehicle into an adapted
vehicle under sub-section (2) of section 52;";
(ix) after clause (n) the following clauses shall be inserted, namely:—
"(na) the distinguishing mark to be carried on the body of transport

vehicles under sub-section (6) of section 56;
(nb) the conditions under which the application of section 56 may be
extended to non-transport vehicles under sub-section (7) of section 56;
(nc) the recycling of motor vehicles and parts thereof which have
exceeded their life under sub-section (4) of section 59;";
(x) after clause (o), the following clauses shall be inserted,
namely:— (oa) all or any of the matters under in section 62B;
"(ob) all or any of the matters under sub-section (1) and sub-section (2) of
section 63;"
amendments proposed in Chapter IV of the Act.
101. The Committee has noted the insertions to be made under this Clause.
102. Clause 27 says In section 66 of the principal Act,—
(xi) in sub-section (1), after the third proviso, the following proviso
"Provided also that where a transport vehicle has been issued any permit
or permits, as well as a licence under this Act, such vehicle may be used
either under the permit, or permits, so issued to it, or under such licence, at the
discretion of the vehicle owner.";
(xii)in sub-section (3), after clause (p) the following clause shall be
"(q) to any transport vehicle having been issued a licence under a
scheme under sub-section (3) of section 67 or sub-section (1) of section
88A, or plying under such orders as may be issued by the Central
Government or by the State Government."
Clause 27 seeks to amend section 66 of the Act to exempt transport vehicles,
operating with a licence under a scheme for the transportation of goods and passengers
made under the provisions of chapter V of the Act from acquiring a permit. It also
allows a transport vehicle which has been issued a permit or a licence under a scheme
for the transportation of goods and passengers made under the provisions of chapter V
of the Act to ply either under such permit or such licence at the discretion of the owner
of the transport vehicle.
103. Stakeholders have submitted that the amendment to section 66 of the Act which
now exempts transport vehicles from the provisions of Chapter V with regard to
permits seems to undermine the legitimacy and monopoly of State Transport
Undertakings by allowing private sector players to start passenger transport services
and thus this is against the public interest.
104. The Ministry has replied that the amendment in section 66 has been made to
augment the existing transport capacities in States without undermining the
infrastructure already in place. The powers are vested with the States to decide in the
best interest of the citizens.
105. The Committee notes the provision of this Clause. The Committee hopes
that the Commercial vehicles may be exempted from taking permit if it is involved
in promotion and development of last mile connectivity, rural transport, reducing
traffic congestion, improving economy etc. The Committee recommends that it
should be specified in the Act itself that the vehicle involved in carrying out a
special job may be exempted from taking permits. The representatives of the
State of Haryana informed the Committee that the present definition of the
vehicles which can be utilized for last mile connectively is not including a large
variety of vehicles used in Haryana. The Committee, therefore recommends that
the definition may be widened to include the concerns of the State Governments.
106. Clause 28 says after section 66 of the principal Act, the following sections
"66A. (1) The Central Government may develop a National
Transportation Policy consistent with the objects of this Act in consultation
with State Governments and other agencies with a view to—
(i) establish a planning framework for passenger and goods transportation
within which transport bodies are to operate;
(ii) establisha medium and long term planning framework for all
forms of road transport, identify areas for the development of transport
improvement infrastructure across India in consultation with the
authorities and agencies related to ports, railways and aviation as well as
with local and State level planning,
land holding and regulatory authorities for the delivery of an integrated
multimodal transport system;
(iii) establish the framework of grant of permits and schemes;
(iv) establish
strategic policy for transport by road and its role as a
link to other means of transport;
(v) identify strategic policies and specify priorities for the transport
system that address current and future challenges;
(vi) provide medium to long term strategic directions, priorities and
actions;
(vii)promote competition, innovation, increase in capacity,
seamless mobility and greater efficiency in transport of goods or
livestock or passengers,
and economical use of resources;
(viii) safeguardthe interest of the public and promote equity, while
seeking to enhance private participation and public-private partnership
in the transport sector;
demonstrate an integrated approach to transport and land
(ix)
use
planning;
(x) identify
the challenges that the National Transportation Policy
seeks to address;
(xi) address any other matter deemed relevant by the Central
Government.
66B. No person who holds the permit issued under this Act
shall—
(a) be disqualified from applying for a licence under the scheme

made under sub-section (3) of section 67 or sub-section (1) of section
88A by reason of holding such permit; and
(b) be required to get such permit cancelled on being issued a
licence under any scheme made under this Act.".
Clause 28 seeks to insert new provisions, viz., sections 66A and 66B in the
Act. Section 66A seeks to empower the Central Government to develop and implement
a National Transportation Policy. Section 66B seeks to provide that permit holders shall
not be disqualified from applying for a licence under a scheme for the transportation
of goods and passengers made under the provisions of chapter V of the Act nor shall
such permit holder be required to surrender the permit on being issued such a licence.
107. The Committee appreciates the proposed addition of section 66A & 66B of
National Transportation Policy. The Committee feels that it will ease the
transport, both the public and commercial, between the States. The Committee
recommends that whatever policy Centre propose to formulate, all the States may
be taken into confidence and the Government sector i.e., public transport and
public carriage may take priority over private contenders.
(i) for sub-section (1), the following sub-section shall be
substituted, namely:— "(1) A State Government,
having regard to —
(a) the advantages offered to the public, trade and
industry by the
development of motor transport;
(b) the desirability of co-ordinating road and rail
transport;
(c) the desirability of preventing the deterioration of the
road system;
and
promoting effective competition among the
(d)
transport service
providers,
may, from time to time, by notification in the Official Gazette
issue directions
both to the State Transport Authority and Regional
Transport Authority regarding the passengers'
convenience, economically competitive fares, prevention
of overcrowding and road safety.";
(ii) in
sub-section (2) the following proviso shall be inserted,
namely:—
"Provided that the State Government may subject to such
conditions as it
may deem fit, and with a view to achieving the objectives
specified in clause (d) of sub-section (1), relax all or any
of the provisions made under this Chapter.";
(iii) after sub-section (2) the following sub-sections shall be
inserted, namely:— "(3) Notwithstanding anything
contained in this Act, the State Government
may, by notification in the Official Gazette modify any permit
issued under this
Act or make schemes for the transportation of goods and
passengers and issue licences under such scheme for the
promotion of development and efficiency in
transportation—
(a) last mile connectivity;
(b) rural transport;
(c) reducing traffic congestion;
(d) improving urban transport;
(e) safety of road users;

(f) better utilisation of transportation assets;
the enhancement of economic vitality of the
(g)
area, though
competitiveness, productivity, and efficiency;
(h) the increase in the accessibility and mobility of
people;
(i) the protection and enhancement of the environment;
(j) the promotion of energy conservation;
(k) improvement of the quality of life;
(l)enhance integration and connectivity of the
transportation system, across and between modes
of transport; and
(m) such other matters as the Central Government may
be deemed fit.
(4) The scheme framed under sub-section (3), shall specify the fees
to be charged, form of application and grant of a licence including
the renewal, suspension cancellation or modification of such licence."
Clause 29 seeks to amend section 67 of the Act to empower the State Government to
issue directions to the State Transport Authority and the Regional Transport Authorities
to safeguard the convenience of passengers, prevent overcrowding, promote road
safety and provide economically competitive fares. It also empowers the State
Government to relax any of the provisions made under Chapter V and modify permits
and make schemes for the transportation of goods and passengers to enhance last mile
connectivity and rural transport, reduce traffic congestion, improve urban transport,
promote safety of road users, better utilization of transport assets, enhance regional
economic vitality, increase accessibility and mobility, protect the environment, promote
energy conservation, improve the quality of life and enhance multimodal integration
among other purposes.
109. The stakeholders have given suggestions that the introduction of licenses under
sub-section (3) of section 67 may lead to a situation where licenses are issued liberally
without any conditions imposed thereon and thus, it would be against public interest. It
provides the State Governments the power to promote effective competition as opposed
to curbing of uneconomic competition under the original provision. This can be made
possible only through deregulation. But deregulation will adversely affect availability
and consequently will be disadvantageous to public interest.
110. The Ministry has replied in response that these powers are proposed to be given
to States to act in the interest of the public.
111. Clause 29 of the Bill is supposed to empower the State Governments to

protect the convenience of passengers, promoting road safety etc. The Committee
feels that this provision will go a long way in helping the public to travel by public
transport.
112. Section 30 says in section 72 of the principal Act, in sub-section (2), the
following proviso shall be inserted, namely:—
"Provided that the Regional Transport Authority may waive any such condition
for a Stage carriage permit operating in a rural area, as it deems fit."
Clause 30 seeks to amend section 72 of the Act to empower the
Regional Transport Authority to waive any permit condition for a stage
carriage operating in a rural area.
113. The Save Life Foundation and some States suggested proviso to sub-section (2)
of Section 72 allowing the RTA to waive any permit conditions for a stage carriage
operating in rural areas. This is detrimental to the safety of road users as RTAs will be
empowered to allow a stage carriage to carry more than prescribed number of
passengers or weight of goods.
114. The State of Telangana has given a written representation saying that waiving
condition of operation will lead to deregulation in stage carriage operation. The public
in poor sector with less population will be affected severely.
115. The Ministry has replied that waiver is only in respect of the permit conditions.
The RTAs cannot over-ride the legal stipulations regarding capacity of vehicles etc.
116. The Committee is of the view that waiving the provision of permit for a
stage carriage in a rural area may prove beneficial for the people belonging to
rural areas of India. The Committee hopes that RTA will perform their duty of
waiving the permit condition for stage carriage to be operated in a rural area with
due diligence and care and road safety may be accorded top priority.
(i) insub-section (2), the following proviso shall be inserted,

namely:—
"Provided that the Regional Transport Authority may in the interests
of last mile connectivity waive any such condition in respect of any
such types of vehicles as may be specified by the Central
Government."
(ii) in sub-section (3), in the proviso to clause (b), after sub-clause

(vi), the following sub-clause shall be inserted, namely:—
"(vii) self-help groups."
Clause 31 seeks to amend section 74 of the Act in order to empower the Regional
Transport Authority to waive any permit condition for a contract carriage to promote
low cost last mile connectivity solutions. It also seeks to facilitate empowerment of
marginalised and vulnerable groups through preference in issuance of permits.
118. The State of Telangana has submitted that waiving the condition of operation
will lead to deregulation in contract carriage operation and will create unhealthy and
uneconomic competition among the passenger transport operators (STU and private
stage carriage operators). The power of State Government in regard of Section 67 (d)
will be diluted. The STU will get crushed and wiped out by the way of inability to
compete with this tourist bus permit.
119. The Committee feels that the instant proviso may help the people in
overcoming the trauma of last mile connectivity if it is implemented efficiently.
The Committee also hopes that as the Ministry has expressed their intention that
this amendment will help in empowerment of marginalized and vulnerable groups
through preference in issuance of permits, the States need not have to be worried
about it.
120. Clause 32 says after section 88 of the principal Act, the following section shall
be inserted, namely:—
"88A. (1) Notwithstanding anything contained in this Act, the
Central Government may, by notification in the Official Gazette, modify
any permit issued under this Act or make schemes for national, multimodal
and inter-State transportation of goods or passengers, and issue or modify
licenses under, such scheme for the following purposes namely:—
(a) last mile connectivity;
(b) rural transport;
(c) improving the movement of freight, and logistics;
(d) better utilisation of transportation assets;

(e)the enhancement to the economic vitality of the area,
especially by
enabling competitiveness, productivity and efficiency;
(f) the increase in the accessibility and mobility of people;
(g) the protection and enhancement of the environment;

(h) the promotion of energy conservation;
(i) improvement of the quality of life;
(j) enhancement of the integration and connectivity of the

transportation system, across and between modes of transport;
(k) such other matters as the Central Government may deem fit:
Provided that the Central Government may, before taking any action
under this sub-section consult the State Governments.
(2) Notwithstanding anything contained in sub-section (1), two or more
States may make schemes for the operation within such States for the inter-
State transportation of goods or passengers:
Provided that in the event of any repugnancy between the schemes
made by the Central Government under sub-section (1) and schemes
made by two or more States under this sub-section, the schemes made
under sub-section (1) shall prevail.
Clause 32 seeks to insert a new section 88A in the Act to empower the Central
Government to modify permits and make schemes for inter-state transport of goods
and passengers.
121. The State of Telangana has submitted that it is a herculean task for the National
Transport Authority to look after the preparation of Schemes for all the 29 States and 7
Union territories. It may not reflect the needs of the adjoining States. Further, the
traffic demand between two States is better assessed by Transport Authorities of two
States when compared with National Transport Authority.
122. The preparation of schemes for inter-State services shall be entrusted to the
concerned State Governments as per the existing provisions of Section 88(5) & 88(6) of
M.V. Act 1988.
123. The Ministry has replied that S.88 A does not contravene the right of any person
to carry on their trade or business, the right to which is the substance of Article 19 (i)
(g) of the Constitution of India.
124. The Committee agrees that the insertion of new Section 88 A would
empower the Central Government to make schemes for national, multimodal and
inter-state transport of passengers and goods but the Committee suggests that the
views of State Governments may be solicited before making any type of
improvements in this direction.
125. Clause 33 says in section 92 of the principal Act, for the words "stage carriage or
contract carriage, in respect of which a permit", the words "transport vehicle, in respect
of which a permit or licence" shall be substituted.
Clause 33 seeks to amend section 92 of the Act in order to void any contract for
conveyance of a passenger in a transport vehicle licenced under a scheme made under
Chapter V that seeks to negative or restrict liability on imposes condition for the
enforcement of liability for the death or bodily injury suffered by such passenger arising
out of the use of such transport vehicle.
126. Amendment in Clause 33 has been objected by many States and they have
demanded that the term "license" is added along with the term "permit".
127. The Ministry in their response has informed that the rules for issue of licenses
under all such schemes under sub-section (3) of s.67 will have to be made by the State
Government with regard to the conditions specified in sub-section (4).
128. The Committee thinks that the words to be substituted carry wider
meaning and suggests that while applying the provisions it should be interpreted
in letter and spirit.
(i) for the marginal heading, the following marginal heading shall be
"Agent or canvasser or aggregator to obtain licence.";

(a) after clause (ii), the following clause shall be inserted,
namely:—
"(iii) as an aggregator;";
(b) the following provisos shall be inserted, namely:—
"Provided that while issuing the licence to an aggregator the State
Government shall follow such guidelines as may be issued by the Central
Government:
Provided further that every aggregator shall comply with the
provisions of the Information Technology Act, 2000 and the rules and
regulations made thereunder."
Clause 34 seeks to amend section 93 of the Act in order to provide
statutory recognition to transport aggregators.
130. Some States have shown their apprehension that this proposal is intended to
encourage entry of aggregators who operate from other countries but aggregate taxi
owner cum drivers into an organized cluster for providing taxi services. This will be
detrimental to the city operation and increase personalized transport for affluent class
and cause congestion on roads which is detrimental to public transport and also causes
increase of pollution due to addition of small cars in the cities.
131. The Ministry has commented that all modes of public transport should be
promoted so as to reduce dependence on personalized transport which will reduce
congestion and pollution.
132. Further, Section 193, as amended in this Bill, clearly lays down penalties for
aggregators for actions in contravention of the provisions of this Act.
133. Clause 34 of the Bill proposes certain amendments in Section 93 of the
Principal Act which inter alia prescribes the issuance of licenses to aggregators.
The Committee notes that it has been prescribed that while issuing the license to
aggregators, the State Government shall follow such guidelines as may be issued
by the Central Government. The proviso makes it amply clear that the State
Governments should follow the guidelines issued by the Central Government for
issuance of licenses to aggregators. The Committee feels that the control of
transport vehicles are the exclusive domain of the State Governments. Through
this amendment, the balance of power between the Centre and the State has been
tilted and the Central Government will get a preponderance of power to control
the aggregators throughout India. The Committee believes that there is no need to
take away the rights of the State Governments with regard to control of transport
vehicles. The Committee, therefore, recommends that every State Government
should have its own powers and guidelines to control the operations of aggregators
within the State. The Committee further recommends that in Clause 34, Section
93, sub-section (iii) (b) proviso, in place of the "State Government shall follow"
with words "State Government may follow" be substituted. The Committee
recommends that while encouraging aggregators certain effective protective
mechanism should be evolved for small operators and local taxi drivers to ensure
that their livelihood is not jeopardized.
134. Clause 35 says in section 94 of the principal Act, after the words "permit"
occurring at both the places the words "or licence issued under any scheme" shall be
inserted.
Clause 35 seeks to amend section 94 of the Act in order to Act to oust the jurisdiction of
civil courts to entertain any question or issue injunction relating to the issue of licences
under a scheme made under Chapter V.
135. There is objection to the inclusion of the term licence in section 94 by some of
the stakeholders.
136. The Ministry has stated that the rules for issue of licenses under all such
schemes under sub-section (3) of section 67 will have to be made by the State
Government with regard to the conditions specified in sub-section (4). All licenses
issued must adhere to the said rules and hence there is very little scope for abuse in case
of issue of licenses.
137. The Committee notes the amendment.
138. Clause 36 says in section 96 of the principal Act, in sub-section (2), after clause
(xxxii), the following clauses shall be inserted, namely:—
"(xxxiia) framing of schemes under sub-section (3) of section 67;
(xxxiib) the promotion of effective competition, passenger convenience and safety,
competitive fares and prevention of overcrowding,"
Clause 36 seeks to amend section 96 of the Act consequence of the amendment
proposed in Chapter V.
139. There is strong objection by the public that section 96 has been amended to
include rules for framing of schemes under rule making powers of the State
Government. And hence, this is not in public interest.
140. The Ministry in response has submitted that this amendment has been inserted
in order to harmonise the provisions of the Amendment Bill.
141. Some of the States have shown their apprehension regarding amendment of
S.110 B which says 'the Central Government shall make rules for the accreditation,
registration and regulation of testing agencies" and urged that the concurrence of State
Government may be sought before issuing the rules.
142. The Ministry has said that this is a pro-citizen provision and would ensure
quality. The implication would be national and not confined to any particular State.
143. The Committee feels that incorporation of Clause 36 will help in promoting
effective competition among the transport providers while keeping in mind the
safety and security of passengers besides other conveniences. The Committee
recommends that the States may accord top priority in ensuring conveniences to
commuters.
in sub-section (1), in clause (k), after the words "standards of the
(i)
components", the words ", including software," shall be inserted';
in sub-section (2), after the words "in particular circumstances", the
(ii)
words "and such rules may lay down the procedure for investigation, the officers
empowered to conduct such investigations, the procedure for hearing of such
matters and the penalties to be levied thereunder" shall be inserted;
(iii) after sub-section (2) the following sub-section shall be inserted, namely:—
"(2A) Persons empowered under sub-section (2) to conduct investigations

referred to in sub-section (2) shall have all the powers of a civil court, while
trying a suit under the Code of Civil Procedure, 1908 in respect of the
following matters, namely :—
summoning and enforcing the attendance of any person and
(a)
examining him on oath;
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavit; and
(d) any other matter as may be prescribed."
Clause 37 seeks to amend section 110 of the Act for the enforcement of standards for
construction, equipment and maintenance of motor vehicles.
145. The Committee notes the provision to be incorporated.
"110A. (1) The Central Government may, by order, direct a manufacturer to

recall motor vehicles of a particular type or its variants, if—
a defect in that particular type of motor vehicle may cause harm to the
(a)
environment or to the driver or occupants of such motor vehicle or other road
users; and
(b) a defect in that particular type of motor vehicle has been reported to
the
Central Government by—
(i) such percentage of owners, as the Central Government, may by
notification in the Official Gazette, specify; or
(ii) a testing agency; or
(iii) any other source.
Where the defect referred to in sub-section (1) lies in a motor vehicle
(2)
component, the Central Government may, by order, direct a manufacturer to recall all
motor vehicles which contain such component, regardless of the type or its variants of
such motor vehicle.
(3)A manufacturer whose vehicles are recalled under sub-section (1) or sub-
section (2), shall—
reimburse the buyers for the full cost of the motor vehicle, subject to any
(a)
hire-purchase or lease-hypothecation agreement; or
(b) replace the
defective motor vehicle with another motor vehicle of similar or
better specifications which complies with the standards specified under this Act
or repair it; and
(c) pay such fines and other dues in accordance with sub-section (6).
(4)Where a manufacturer notices a defect in a motor vehicle manufactured by
him, he shall inform the Central Government of the defect and initiate recall proceedings
and in such case the manufacturer shall not be liable to pay fine under sub-section (3).
(5)The Central Government may authorise any officer to conduct investigation
under this section who shall have all the powers of a civil court, while trying a suit
under the Code of Civil Procedure, 1908 in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him
on oath;
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavit; and
(d) any other matter as may be prescribed.
(6)The Central Government may make rules for regulating the recall of motor
vehicles, of a particular type or its variants, for any defect which in the opinion of the
Central Government, may cause harm to the environment or to the driver or occupants of
such motor vehicle or to other road users.
110B. (1) No motor vehicle, including a trailer or semi-trailer or modular hydraulic
trailer or side car shall be sold or delivered or offered for sale or delivery or used in a
public place in India unless a type approval certificate referred to in sub-section (2)
has been issued in respect of such vehicle:
Provided that the Central Government may, by notification in the Official Gazette,
extend the requirement of type approval certificate to other vehicles drawn or intended to
be drawn by a motor vehicle:
Provided further that such certificate shall not be required for vehicles which
are—
(a) intended for export or display or demonstration or exhibition; or
(b) used by a manufacturer of motor vehicles or motor vehicle components or a
research and development centre or a test by agency for testing and validation or for
data collection, inside factory premises or in a non-public place; or
(c) exempted by the Central Government.
(2) The manufacturer or importer of motor vehicles including trailers, semi-

trailers, modular hydraulic trailers and side cars shall submit the prototype of the vehicle
to be manufactured or imported for test to a testing agency for obtaining a type-
approval certificate by such agency.
(3) The Central Government shall make rules for the accreditation,
registration and regulation of testing agencies.
(4)The testing agencies shall conduct tests on vehicles drawn from the
production line of the manufacturer or obtained otherwise to verify the conformity of
such vehicles to the provisions of this Chapter and the rules and regulations made
thereunder.
(5) Where the motor vehicle having a type-approval certificate is recalled
under section 110A, the testing agency which granted the certificate to such motor
vehicle shall be liable for its accreditation and registration to be cancelled."
Clause 38 seeks to insert new provisions, viz., sections 110A and 110B in the
Act. Section 110A seeks to empower the Central Government to recall vehicles which do
not meet standards and for making rules in this behalf. Section 110B seeks to provide for
issue of type- approval certificates and the establishment and regulation of testing
agencies for testing of motor vehicles and issue of type approval certificates, and for
the making of rules in this behalf by the Central Government.
147. The Committee finds that the Clause 38 is one of the most important
amendments as it speaks about recalling the vehicles which may cause harm to
environment and may be risky for its occupants including driver and other road
users. The Committee thinks that the owner of vehicles may also be compensated
suitably and the manufacturer may reimburse the total cost of vehicle to its owner,
if the vehicle is found to be faulty. The Committee hopes that inclusion of this
section will go a long way in curbing the malpractices by the manufacturers. The
Committee recommends that this Section may be implemented/invoked whenever
it is required without favouring anyone and provision of penalty on
manufacturers may be imposed if running of defective vehicles have caused harm
to the environment.
148. Clause 39 says in section 114 of the principal Act, in sub-section (1), for the
words "authorised in this behalf by the State Government", the words "or any other
person authorised in this behalf by the State Government" shall be substituted.
Clause 39 seeks to amend section 114 of the Act in order to enable State
governments to designate any agency as the enforcement agency for this
section.
149. The stakeholders submitted before the Committee that under the amended
section 114, power should be delegated only to such agency on condition that their
equipment is foolproof and transparent and is accessible to the Transport Department.
Weighing process should be recorded and fines collected electronically. Weighbridges
should be tamper proof and there must be audits carried out by independent parties
every three months. Agencies who misuse their power under this section should be
punished harshly with fine of Rs.25 lakhs or more and imprisonment of three years or
more.
150. The Ministry has replied that law relating to the accuracy of the equipment is
implemented by Weights and Measures department.
151. The Ministry has further added that the power to delegate is being vested with
the States. The States will act in public interest.
152. The Committee notes the reply and feels that the measures to be taken
under section 114 are the responsibility vested with the States and they have to
implement and ensure the honesty of the agency to be employed for the job. The
work is linked not only with the road safety but also with the revenue generation
for the States.
(i) after sub-section (1), the following sub-section shall be inserted, namely:—
"(1A) Notwithstanding anything contained in sub-section (1), the National
Highways Authority of India constituted under the National Highways
Authority of India Act, 1988 or any other agency authorised by the Central
Government, may cause or permit traffic signs, as provided in the First
Schedule, to be placed or erected or removed on national highways for the
purpose of regulating motor vehicle traffic and may order the removal of any
sign or advertisement which in its opinion is so placed as to obscure any traffic
sign from view or is so similar in appearance to a traffic sign as to mislead or
is likely to distract the attention or concentration of the driver.";
(ii) in sub-section (3), after the words, brackets and figures "provided by sub-
section (1)", the words, brackets, figures and letter "or sub-section (1A)" shall
be inserted; and
Clause 40 seeks to amend section 116 of the Act in order to enable the NHAI to
construct traffic signs for highways and for roads immediately leading up to
highways.
154. The stakeholders said that section 116 has been amended to enable NHAI to
erect traffic signs for highways and for roads leading immediately up to highways.
This is against public interest because NHAI lacks the expertise to determine place of
erection of such signs, or the need and demand for such signs.
155. The Ministry has replied that the purpose of the said amendment is to utilize
fully the capacities of NHAI with regard to creation of safe road infrastructure.
156. The Committee feels that it is the duty of the organization which constructs
it to maintain the same in all respects. NHAI plays the biggest role in constructing
a highway and it is their responsibility to maintain it and guide the road user in a
proper way. The Committee appreciates the move of Ministry to enable NHAI to
do the needful for smooth running of traffic. As far as expertise of NHAI
regarding erection of traffic signs is concerned, it is the responsibility of NHAI to
get suggestions and expertise of those who are having practical knowledge of the
subject.
157. Clause 41 says in section 117 of the principal Act, the following provisos shall
"Provided that the State Government or the authorised authority shall, give
primacy to the safety of road users and the free flow of traffic in determining such
places:
Provided further that for the purpose of this section the National Highways
Authority of India, constituted under the National Highways Authority of India
Act, 1988 or any other agency authorised by the Central Government, may also
specify such places."
Clause 41 seeks to amend section 117 of the Act for the
establishment of parking facilities for motor vehicles.
158. The Committee notes that many of the major accidents are caused and
many lives are lost due to the wrong parking of vehicles in Highways. Parking
spaces should be an integral part of all the road construction projects. A clear and
effective policy in this regard is essential to curb the menace. The Committee feels
that parking space is a very important aspect of the road safety and there is
requirement of space for parking the vehicles by the road users to allow smooth
traffic flow. The Committee recommends that NHAI may create parking for the
public's vehicle along the highways at regular intervals. At the same time States
should also construct and maintain parking spaces along State Highways.
159. Clause 42 says for section 129 of the principal Act, the following section shall be
"129. Every person, above four years of age, driving or riding or being carried
on a motor cycle of any class or description shall, while in a public place, wear
protective headgear conforming to such standards as may be prescribed by the
Central Government:
Provided that the provisions of this section shall not apply to a person who is
a Sikh, if, while driving or riding on the motor cycle, in a public place, he is
wearing a turban:
Provided further that the Central Government may by rules provide for
measures for the safety of children below four years of age riding or being carried on
a motorcycle.
Explanation.—"Protective headgear" means a helmet which,—
(a)by virtue of its shape, material and construction, could reasonably be
expected to afford to the person driving or riding on a motor cycle a degree
or protection from injury in the event of an accident; and
(b) is securely fastened to the head of the wearer by means of straps or
other fastenings provided on the headgear."
Clause 42 seeks to substitute section 129 of the Act. The new section
129 exempts children below four years of age from the ambit of this
provision and empowers the Central Government to make rules for
additional measures for the safety of children below four years.
160 There should be special rules and regulations to ensure safety of children,
require child restraints, not allow children between ages of 0-4 years to ride on two-
wheelers.
161. The Ministry has submitted that new Section 194B has been added to impose a
penalty if child restraints system is not used. Section 129 empowers the Central
Government to make rules to provide for measures for the safety of children below four
years of age being carried on two wheelers.
161. The Committee observes that two wheeler riders carry more risk during
driving compared to four-wheelers and it is an essential requirement that riders
could wear protective headgears during driving. Riders who are above 4 years
certainly need protective headgears for their safety. The Committee thinks that
amendment in Section 129 will strengthen the authority to enforce the safety
measures in the public interest. The Committee also recommends that the
Government should make an appropriate rule on allowing children below four
years in two wheelers. While formulating the rule, safety aspect of the below 4
year old child should be given the uppermost consideration regardless of any
socio-economic situation prevailing in our country.
"134A. (1) A Good Samaritan shall not be liable for any civil or criminal
action for any injury to or death of the victim of an accident involving a
motor vehicle, where such injury or death resulted from the Good Samaritan's
negligence in acting or failing to act while rendering emergency medical or
non-medical care or assistance.
(2)The Central Government may by rules provide for the
procedure for
questioning or examination of the Good Samaritan, disclosure of personal
information of the Good Samaritan and such other related matters.
'Explanation.—For the purpose of this section, "Good Samaritan"
means a person, who in good faith, voluntarily and without expectation of
any reward or compensation renders emergency medical or non-medical
care or assistance at the scene of an accident to the victim or transporting
such victim to the hospital‟.
Clause 43 seeks to insert a new section 134A in the Act to protect Good
Samaritans.
163. The Committee finds that the insertion of new Section i.e. 134 A which
encourages in motivating the general public to come forward and help the
accident victims at the time of need is a welcome step. It has been observed that
many a times people instead of helping the accident victims, wait for police to
arrive on the accident sites, so that the police could help the victims in reaching
the nearby hospitals. Sometimes, in this process a substantial period of time is lost
and victims succumb to injury. The Committee feels that people don't come
forward to help the accident victims as they have doubt in their minds that the
police will harass them. The Committee recommends that it is the responsibility
of the local administration and police to make the people trust them that they will
not be harassed in any manner if they extend their voluntary help to victims. At
the same time, the Committee recommends that the police at the lower level who
comes to the accident sites first, may be sensitized on this issue as they have to deal
with the public directly and elicit people‟s support.
164. The Committee notes that the doctors and nurses who are attending the
accident victims are often harassed by the police authorities. The Committee
observes that to give effect to the concept of „Good Samaritan‟ the doctors and
nurses who are treating the accident victims should also get adequate legal
protection. The Committee, therefore recommends that the doctors and nurses
who are treating the accident victims should be included in the definition of
“Good Samaritans”.
(i) in sub-section (1),—
(a) in clause (c), the word "and" shall be omitted;
(b) in clause (d), for the word "highways", the word
"highways and" shall
be substituted; and
(ii) after clause (d), the following clause shall be inserted, namely:—
"(e) any other amenities in the interests of the safety and the
convenience of the public.";
(iii) after sub-section (2), the following sub-section shall be inserted,
namely:—
"(3) The Central Government may, by notification in the Official
Gazette, make one or more schemes to conduct in-depth studies on the
causes and analysis of road accidents."
Clause 44 seeks to amend section 135 of the Act to empower the State
government to make schemes for any amenities that they deem fit in the
interests of the public. It also empowers the Central Government to make
schemes for in-depth studies and analysis of causes of road accidents.
166. A number of stakeholders put queries before the Committee that there is no
scientific investigation of road crashes- it is important to improve data collection to
account for driver fault, road conditions and other external causes in order to improve
road safety. Further, Bill does not address efforts for creating awareness, education,
and involving stakeholders for maximum reach. It does not address streamlining of the
procedures and processes for road safety audit. There are lack of basic amenities, rest
areas, secure parking zones and harassment by law enforcement and toll officials.
167. The Ministry has replied that Section 135 empowers the Central and State
Governments to make schemes to conduct in-depth studies on the causes and analysis
of road accidents. The Ministry further added that the road safety advocacy is the
responsibility of the executive and need not be included in the Act.
168. Section 135 empowers the State Government to provide for wayside amenities
on highways and provide truck parking complexes on highways and other amenities in
the interests of the safety and convenience of the public.
169. Power to conduct road safety audits is proposed to be granted to the State
Government under Section 135, wherein it may make schemes for in-depth studies on
causes and analysis of road accidents. Safety audits of roads are important to determine
causes and analyse road accidents. Hence State Governments are empowered to
conduct safety audits.
170. The Committee is alarmed at the large number of road accidents
occurring in the country. After hearing the stakeholders from various fields, the
Committee came to the conclusion that there are many factors which cause
accidents on road. Road designing/engineering, potholes, wrong signage, high
speed and inferior driving skills are some of the reasons to quote. To reduce the
accidents there is a need to take many measures by the State Governments.
Secondly, causes of accidents are not the same at every place but it varies. The
Committee recommends that some strategy may be formulated at the State level to
address the causes of accident at a particular accident prone stretch and also to
find its remedy to correct the problems.
171. In India, we lack a robust, scientific and standardized accident investigation
and data collection system. The Committee notes that reasons for the large
number of accidents are never studied or investigated to incorporate remedial
measures. Simply by providing a framework to conduct road safety audit is not a
sufficient mechanism for scientific investigation to understand the causes of road
accidents. The Committee, therefore, recommends that a new Section 213 A may
be inserted to authorise Central Government to prescribe the form and manner of
scientific investigation on the causes of road accidents. It should also give powers
to the State Governments to carry out road safety audits.
172. The Committee also notes that the present Bill failed to address the issue of
accidents caused by faulty road designs and non-maintenance of roads and the
accountability of the same. The Committee, therefore, recommends that a penalty
provision (Section 198A) may be inserted in the Bill to hold road contractors and
concessionaires accountable for faulty design, construction and maintenance of
roads.
173. As per available data, during the year 2015, approximately 1.5 lakh people
died in the road accidents all over the country and around 5 lakh people got
injured or disabled. The Committee notes that it is an alarming situation and a
huge loss to the nation. The Stakeholders such as the Governments of the Centre
and the State, road users, various governmental agencies etc. have to play their
role in a positive way to minimize the road accidents.
174. The Committee recommends that Ministry of Road Transport and
Highways and respective States to provide in their respective field, certain
amenities viz. washrooms, medical stores, restaurants, petrol pumps etc. since
people travel for hours together on the road and such type of amenities are needed
and it should be made available to the public by the authorities.
175. The Committee further recommends that every road construction
project/contract should invariably include the provisions such as washrooms,
medical facilities, trauma centres, petrol pumps, parking spaces etc. In this
direction the committee also recommends that availability of ambulance on the
highways on every 30 km may be ensured by the operator of the Highways so that
in case of any accident the injured may get the necessary medical treatment.
"136A. (1) The State Government shall ensure electronic monitoring
and enforcement of road safety in the manner provided under sub-section (2)
on National highways, State highways, roads or in any urban city within a
State which has a population upto such limits as may be prescribed by the
Central Government.
(2) The Central Government shall make rules for the electronic
monitoring and
enforcement of road safety including speed cameras, closed-circuit television
cameras, speed guns, body wearable cameras and such other technology.
Explanation.—For the purpose of this section the expression "body
wearable camera" means a mobile audio and video capture device worn on
the body or uniform of a person authorised by the State Government."
Clause 45 seeks to insert a new section 136A in the Act in order to
allow electronic monitoring and enforcement.
177. State of West Bengal submitted before the Committee that the Bill has imposed
significant financial responsibility on States. E.g. S.136 A mandates States to
implement electronic enforcement of road safety even on National Highways. Income
from National Highways goes to Central Funds and previously safety has been the
responsibility of the Central Government. However, no fund provision has been made
to the States for such additional responsibility.
178. The Ministry has reacted in response saying that this is only an enabling
provision for electronic enforcement giving it a legal cover. Central Government has
committed substantial resources for road safety.
179. The Committee appreciates the insertion of Clause 136A for enforcement
of safety on roads. It is a known fact that today road traffic is very high and to
control them manually is an uphill task for any agency. It is high time for the
State to go for electronic monitoring to enforce the road Rules and the Committee
recommends that the Ministry should help all the States in acquiring expertise and
other logistic supports to make roads more safe.
180. Clause 46 says - in section 137 of the principal Act, —
(i) after clause (a) the following clause shall be inserted, namely:—
"(aa) providing for the standards of protective headgear and

measures for the safety of children below the age of four years riding
under section 129;"
(ii) after clause (b) the following clause shall be inserted, namely:—
"(c) providing for criteria for the selection of cities by the State
Governments where the electronic monitoring and enforcement under
in sub-section (1) of section 136A is to implemented; and
(d) providing for electronic monitoring and enforcement under sub-
section (2) of section 136A.".
Clause 46 seeks to amend section 137 of the Act in consequence of
the amendments proposed in Chapter VIII.
181. The Committee agrees with the proposed amendment to be brought under
S.137 regarding protective headgear and measures for the safety of children below
the age of four years riding under section 129. The Committee is of the view that
every individual's life is valuable and it must be protected at any cost. It has been
seen that many people buy helmets/headgear of inferior quality which is from the
safety point of view is a costly compromise. The Committee recommends that the
Government should ensure quality and standard of children's headgear by the
manufacturer and this section may be implemented forcefully. The Committee
further recommends that the Centre should allocate resources to the States to
implement various new schemes and programmes envisaged in this Amendment
Bill.
182. Clause 47 says In section 138 of the principal Act, after sub-section (1), the
following sub-section shall be iinserted, namely:—
"(1A) The State Government may make rules for the purpose of regulating
the activities in a public place of pedestrians and such means of transport as are
propelled or powered by muscular power of either human beings or animals.
Clause 47 seeks to amend section 138 of the Act in order to empower
States to regulate pedestrians and non-motorised transport.
183. The Committee observes that the insertion of new sub-section 1(A) under
Section 138 is very important step towards streamlining the uncontrolled non-
motorized vehicles and pedestrians. It is a fact that pedestrians are the most
vulnerable section among the road users and more often the victims do not have
any insurance cover for him/her. The Committee also stresses that the non-
motorized vehicles do not follow road rules and create a lot of nuisance. They are
traffic hazard for others also. The Committee recommends that for smooth
traffic, there is a need of streamlining non-motorized vehicles by introducing
minor penalty/punishment. Here the punishment may be prescribed as corrective
measures like giving training on traffic rules and not as penalty in monetary term.
The Committee recommends that the non-motorized vehicles should not be
allowed on National Highways and main roads of metro cities.
184. Chapter X in the principal Act, shall be omitted.
Clause 48 seeks to omit Chapter X of the Act because no fault liability has been
provided for under section 164 of the new Chapter XI.
185. Clause 48 says that Chapter X in the Principal Act shall be omitted. It is
mentioned here that Chapter-X speaks about the liability without fault in certain cases
and this chapter consists of 5 Sections i.e. from 140 to 144. Section 140 deals with
liability to pay compensation in certain cases on the principle of no fault i.e. the liability
of the owner of the vehicle to pay compensation in certain cases on the principle of no
fault; where death or permanent disablement of a person has resulted from an accident
arising out of a motor vehicle. In S.141 contains provisions on right to Claim
compensation for death or permanent disablement.
186. The Committee notes the omission of Chapter X of the Act.
187. Clause 49 says for Chapter XI of the principal Act, the following chapter shall
be substituted, namely:—
Clause 49 seeks to substitute Chapter XI of the principal Act with a new
Chapter XI. This Chapter aims to simplify the third party insurance for motor
vehicles. It empowers the Central Government to prescribe the premium and the
corresponding liability of the insurer for such a policy. It also provides for
compensation on the basis of no-fault liability, scheme for the treatment of
accident victims during the Golden hour and provides for increase in the
compensation to accident victims up to a limit of ten lakh rupees in the case of
death and five lakh rupees in the case of grievous hurt. It also provides a
scheme for interim relief to be given to claimants.
For Chapter XI of the principal Act, the following chapter shall be substituted,
namely:—
"CHAPTER XI
INSURANCE OF MOTOR VEHICLES AGAINST
THIRD PARTY RISKS
145. In this Chapter,—
(a)"authorised insurer" means an insurer for the time being carrying on

general insurance business in India and granted a certificate of registration
by the Insurance Regulatory and Development Authority established under
section 3 of the Insurance Regulatory and Development Authority Act, 1999
and any Government insurance fund authorised to do general insurance
business under the General Insurance Business (Nationalization) Act, 1972;
(b) "certificate of insurance" means a certificate issued by an authorised
insurer in pursuance of section 147 and includes a cover note complying
with such requirements as may be prescribed, and where more than one
certificate has been issued in connection with a policy, or where a copy of a
certificate has been issued, all those certificates or that copy, as the case may
be;
(c) "grievous hurt" shall have the same meaning as assigned to it in section
320 of the Indian Penal Code, 1860;
(d) "hitand run motor accident" means an accident arising out of the use
of a motor vehicle or motor vehicles the identity whereof cannot be
ascertained in spite of reasonable efforts for the purpose;
(e) "Insurance Regulatory and Development Authority" means the
Insurance Regulatory and Development Authority established under section
3 of the Insurance Regulatory and Development Authority Act, 1999;
(f) "policy of insurance" includes certificate of insurance;
(g) "property" includes roads, bridges, culverts, causeways, trees, posts,

milestones and baggage of passengers and goods carried in any motor
vehicle;
(h)"reciprocating country" means any such country as may on the basis
of reciprocity be notified by the Central Government in the Official Gazette to
be a reciprocating country for the purposes of this Act;
(i) "third party" includes the Government.
146. (1) No person shall use, except as a passenger, or cause or allow any other
person to use, a motor vehicle in a public place, unless there is in force, in relation to
the use of the vehicle by that person or that other person, as the case may be, a policy
of insurance complying with the requirements of this Chapter:
Provided that in the case of a vehicle carrying, or meant to carry, dangerous or
hazardous goods, there shall also be a policy of insurance under the Public Liability
Insurance Act, 1991.
Explanation.— For the purposes of this sub-section, a person driving a motor
vehicle merely as a paid employee, while there is in relation to the use of the vehicle no
such policy in force as is required by this sub-section, shall not be deemed to act in
contravention of the sub-section unless he knows or has reason to believe that there is
no such policy in force.
(2) The provisions of sub-section (1) shall not apply to any motor
vehicle owned by the Central Government and used for the purposes relating
to the defence of the country which is unconnected with any commercial
objective, subject to an order made in writing in this regard by the Central
Government.
(3) No order under sub-section (2) shall be made unless there has been
established and maintained a fund in accordance with the rules made under
this Act for meeting any liability to third parties arising out of the use of
motor vehicles specified in that sub-section.
147. (1)In order to comply with the requirements of this Chapter, a
policy of
insurance must be a policy which—
(a) is issued by a person who is an authorised insurer; and
(b) insures the person or classes of persons specified in the policy
to the extent specified in sub-section (2)—
(i) against any liability which may be incurred by him in respect of
the death of or bodily injury to any person including owner of the
goods or his authorised representative carried in the motor vehicle or
damage to any property of a third party caused by or arising out of
the use of the motor vehicle in a public place;
(ii) against the death of or bodily injury to any passenger
of a transport vehicle, except gratuitous passengers of a goods
vehicle, caused by or arising out of the use of the motor vehicle in a
public place.
Explanation— For the removal of doubts, it is hereby clarified that the
death of or bodily injury to any person or damage to any property of a third
party shall be deemed to have been caused by or to have arisen out of, the use
of a vehicle in a public
place, notwithstanding that the person who is dead or injured or the property
which is damaged was not in a public place at the time of the accident, if the
act or omission which led to the accident occurred in a public place.
(2) Notwithstanding anything contained under any other law for the
time being in force, for the purposes of third party insurance related to either
death of a person or grievous hurt to a person, the Central Government shall
prescribe a base premium and the liability of an insurer in relation to such
premium for an insurance policy under sub- section (1) in consultation with
the Insurance Regulatory and Development Authority:
Provided that the payment to a person by an insurer, under the third
party insurance policy, shall be a sum of not exceeding ten lakh rupees in
case of death and not exceeding ten five lakh rupees in case of grievous
hurt, as may be prescribed by the Central Government from time to time.
(3) A policy shall be of no effect for the purposes of this Chapter
unless and until there is issued by the insurer in favour of the person by
whom the policy is effected a certificate of insurance in the prescribed form
and containing the prescribed particulars of any condition subject to
which the policy is issued and of any other prescribed matters; and
different forms, particulars and matters may be prescribed in different cases.
(4) Where a policy of insurance issued before the commencement of
the Motor Vehicles (Amendment) Act, 2016 does not conform to the
provisions of this Act, it shall be so amended as to conform to the
provisions of this Act, within a period of three months from the date of
commencement of the Motor Vehicles (Amendment) Act, 2016.
(5)Where a cover note issued by the insurer under the provisions of

this Chapter or the rules or regulations made thereunder is not followed by a
policy of insurance within the specified time, the insurer shall, within seven
days of the expiry of the period of the validity of the cover note, notify the
fact to the registering authority or to such other authority as the State
Government may prescribe.
(6) Notwithstanding anything contained in any other law for the time
being in force, an insurer issuing a policy of insurance under this section
shall be liable to indemnify the person or classes of persons specified in the
policy in respect of any liability which the policy purports to cover in the
case of that person or those classes of persons.
148. Where, in pursuance of an arrangement between India and any reciprocating
country, the motor vehicle registered in the reciprocating country operates on any route
or within any area common to the two countries and there is in force in relation to the use
of the vehicle in the reciprocating country, a policy of insurance complying with the
requirements of the law of insurance for the time being in force in that country, then,
notwithstanding anything contained in section 147 but subject to any rules which may
be made under section 164B such policy of insurance shall be effective throughout the
route or area in respect of which the arrangement has been made, as if the policy of
insurance had complied with the requirements of this Chapter.
149. (1) The insurance company shall, upon receiving information of the
accident,either through accident information report or otherwise, designate an officer to
settle the claims relating to such accident.
(2) An officer designated by the insurance company for processing the
settlement of claim of compensation may make an offer to the claimant for
settlement before the
Claims Tribunal giving such details, within such time and after following such procedure
as may be prescribed by the Central Government.
(3) If, the claimant to whom the offer is made under sub-section (2),—
(a) accepts such offer,—

(i) the
Claims Tribunal shall make a record of such settlement, and such
claim shall be deemed to be settled by consent; and
(ii) the payment shall be made by the insurance company within a maximum
period of thirty days from the date of receipt of such record of settlement;
(b) rejects such offer, a date of hearing shall be fixed by the Claims Tribunal to
adjudicate such claim on merits.
150. (1) If, after a certificate of insurance has been issued under sub-section (3) of section
147 in favour of the person by whom a policy has been effected, judgment or award in
respect of any such liability as is required to be covered by a policy under clause (b) of
sub-section (1) of section 147 (being a liability covered by the terms of the policy) or
under the provisions of section 164 is obtained against any person insured by the
policy, then, notwithstanding that the insurer may be entitled to avoid or cancel or
may have avoided or cancelled the policy, the insurer shall, subject to the provisions of
this section, pay to the person entitled to the benefit of the award any sum not
exceeding the sum assured payable thereunder, as if that person were the judgment
debtor, in respect of the liability, together with any amount payable in respect of costs
and any sum payable in respect of interest on that sum by virtue of any enactment
relating to interest on judgments.
No sum shall be payable by an insurer under sub-section (1) in respect of any
(2)
judgment or award unless, before the commencement of the proceedings in which the
judgment or award is given the insurer had notice through the court or, as the case may
be, the Claims Tribunal of the bringing of the proceedings, or in respect of such
judgment or award so long as its execution is stayed pending an appeal; and an insurer to
whom notice of the bringing of any such proceedings is so given shall be entitled to be
made a party thereto, and to defend the action on any of the following grounds,
namely:—
that there has been a breach of a specified condition of the policy, being
(a)
one of the following conditions, namely:—
(i) a condition excluding the use of the vehicle—
(A) for hire or reward, where the vehicle is on the date of the contract of
insurance a vehicle not covered by a permit to ply for hire or reward; or
(B) for organised racing and speed testing; or
(C) for a purpose not allowed by the permit under which the vehicle is
used, where the vehicle is a transport vehicle; or
without side-car being attached where the vehicle is a two- wheeled
(D)
vehicle; or
a condition excluding driving by a named person or by any person who is
(ii)
not duly licensed or by any person who has been disqualified for holding or
obtaining a driving licence during the period of disqualification; or
(iii) a
condition excluding liability for injury caused or contributed to by
conditions of war, civil war, riot or civil commotion; or
that the policy is void on the ground that it was obtained by non-
(b)
disclosure of any material fact or by representation of any fact which was false in
some material particular; or
(c) that there is non-receipt of premium as required under section 64VB of the
Insurance Act, 1938.
(3) Where any such judgment or award as is referred to in sub-section (1) is
obtained from a court in a reciprocating country and in the case of a foreign judgment is,
by virtue of the provisions of section 13 of the Code of Civil Procedure, 1908
conclusive as to any matter adjudicated upon by it, the insurer (being an insurer
registered under the Insurance Act, 1938 and whether or not that person is registered
under the corresponding law of the reciprocating country) shall be liable to the person
entitled to the benefit of the decree in the manner and to the extend specified in sub-
section (1), as if the judgment or award were given by a court in India:
Provided that no sum shall be payable by the insurer in respect of any such
judgment or award unless, before the commencement of the proceedings in which the
judgment or award is given, the insurer had notice through the court concerned of the
bringing of the proceedings and the insurer to whom notice is so given is entitled
under the corresponding law of the reciprocating country, to be made a party to the
proceedings and to defend the action on grounds similar to those specified in sub-
section (2).
(4) Where a certificate of insurance has been issued under sub-section (3) of
section 147 to the person by whom a policy has been effected, so much of the policy as
purports to restrict the insurance of the persons insured thereby, by reference to any
condition other than those in sub-section (2) shall, as respects such liabilities as are
required to be covered by a policy under clause (b) of sub-section (1) of section 147,
be of no effect:
Provided that any sum paid by the insurer in or towards the discharge of any
liability of any person which is covered by the policy by virtue of this sub-section
shall be recoverable by the insurer from that person.
(5)If the amount which an insurer becomes liable under this section to
pay in respect of a liability incurred by a person insured by a policy exceeds the
amount for which the insurer would apart from the provisions of this section be
liable under the policy in respect of that liability, the insurer shall be entitled to
recover the excess amount from that person.
No insurer to whom the notice referred to in sub-section (2) or sub-
(6)
section has been given shall be entitled to avoid his liability to any person entitled
to the benefit of any such judgment or award as is referred to in sub-section (1) or
in such judgment as is referred to in sub-section (3) otherwise than in the manner
provided for in sub-section (2) or in the corresponding law of the reciprocating
country, as the case may be.
(7) If on the date of filing of any claim, the claimant is not aware of the
insurance company with which the vehicle had been insured, it shall be the duty
of the owner of the vehicle to furnish to the tribunal or court the information as to
whether the vehicle had been insured on the date of the accident, and if so, the
name of the insurance company with which it is insured.
Explanation.— For the purposes of this section,—
(a) "award" means an award made by the Claims Tribunal under section
168;
(b)"Claims Tribunal" means a Claims Tribunal constituted under section 165;
(c) "liability covered by the terms of the policy" means the liability which is covered
by the policy or which would be so covered but for the fact that the insurer is entitled
to avoid or cancel or has avoided or cancelled the policy; and
"material fact" and "material particular" means, respectively, a fact or
(d)
25 particular of such a nature as to influence the judgment of a prudent
insurer in determining whether he shall take the risk and, if so, at what
premium and on what conditions.
151. (1) Where under any contract of insurance affected in accordance with the
provisions of this Chapter, a person is insured against liabilities which he may incur to
30 third parties, then—
(a) in the event of the person becoming insolvent or making a
composition or arrangement with his creditors; or
(b) where the insured person is a company, in the event of a winding-up
order being made or a resolution for a voluntary winding-up being passed with
respect to the company or of a receiver or manager of the company's business or
undertaking being duly appointed, or of possession being taken by or on behalf of the
holders of any debentures secured by a floating charge of any property comprised in
or subject to the charge,
if, either before or after that event, any such liability is incurred by the insured per his
rights against the insurer under the contract in respect of the liability shall,
notwithstanding anything to the contrary in any provision of law, be transferred to
and vest in the third party to whom the liability was so incurred.
(2)Where an order for the administration of the estate of a deceased debtor is
made according to the law of insolvency, then, if any debt provable in insolvency is
owing by the deceased in respect of a liability to a third party against which he was
insured under a contract of insurance in accordance with the provisions of this Chapter,
the deceased debtor's rights against the insurer in respect of that liability shall,
notwithstanding anything to the contrary in any provision of law, be transferred to
and vest in the person to whom the debt is owing.
(3)Any condition in a policy issued for the purposes of this Chapter

purporting, either directly or indirectly, to avoid the policy or to alter the rights of the
parties thereunder upon the happening to the insured person of any of the events
specified in clause (a) or clause (b) of sub-section (1) or upon the making of an
order for the administration of the estate of a deceased debtor according to the law of
insolvency, shall be of no effect.
(4)Upon a transfer under sub-section (1) or sub-section (2), the insurer shall
be under the same liability to the third party as he would have been to the insured person,
but—
(a) if the liability of the insurer to the insured person exceeds the liability
of the insured person to the third party, nothing in this Chapter shall affect the rights of
the insured person against the insurer in respect of the excess amount; and
(b) if the liability of the insurer to the insured person is less than the liability
of the insured person to the third party, nothing in this Chapter shall affect the rights
of the third party against the insured person in respect of the balance amount.
152. (1) No person against whom a claim is made in respect of any liability
referred to in clause (b) of sub-section (1) of section 147 shall, on demand by or on
behalf of the person making the claim, refuse to state whether or not he was insured in
respect of that liability by any policy issued under the provisions of this Chapter, or
would have been so insured if the insurer had not avoided or cancelled the policy, nor
shall he refuse, if he was or would have been so insured, to give such particulars with
respect to that policy as were specified in the certificate of insurance issued in respect
thereof.
(2) In the event of any person becoming insolvent or making an arrangement with
his creditors or in the event of an order being made for the administration of the estate
of a deceased person according to the law of insolvency, or in the event of a winding-
up order being made or a resolution for a voluntary winding-up being passed with
respect to any company or of a receiver or manager of the company's business or
undertaking being duly appointed or of possession being taken by or on behalf of the
holders of any debentures secured by a floating charge on any property comprised in or
subject to the charge, it shall be the duty of the insolvent debtor, personal
representative of the deceased debtor or company, as the case may be, or the official
assignee or receiver in insolvency, trustee, liquidator, receiver or manager, or person in
possession of the property to give, on the request of any person claiming that the
insolvent debtor, deceased debtor or company is under such liability to him as is
covered by the provision of this Chapter, such information as may reasonably be
required by him for the purpose of ascertaining whether any rights have been transferred
to and vested in him by section 151, and for the purpose of enforcing such
rights, if any, and any such contract of insurance as purports whether directly or
indirectly to avoid the contract or to alter the rights of the parties thereunder upon the
giving of such information in the events aforesaid, or otherwise to prohibit or prevent the
giving thereof in the said events, shall be of no effect.
(3) If, from the information given to any person in pursuance of sub-section (2) or
otherwise, he has reasonable ground for supporting that there have or may have been
transferred to him under this Chapter rights against any particular insurer, that insurer
shall be subject to the same duty as is imposed by the said sub-section on the persons
therein mentioned.
(4) The duty to give the information imposed by this section shall include a duty
to allow all contracts of insurance, receipts for premiums, and other relevant documents in
the possession or power of the person on whom the duty is so imposed to be inspected
and copies thereof to be taken.
153. (1) No settlement made by an insurer in respect of any claim which might
be made by a third party in respect of any liability of the nature referred to in clause (b)
of sub-section (1) of section 147 shall be valid unless such third party is a party to the
settlement.
(2) The
Claims Tribunal shall ensure that the settlement is bona fide and was not
made under undue influence and the compensation is made in accordance with the
payment schedule referred to in sub-section (1) of section 164.
(3) Where a person who is insured under a policy issued for the purpose of this
Chapter has become insolvent, or where, if such insured person is a company, a
winding-up order has been made or a resolution for a voluntary winding-up has been
passed with respect to the company, no agreement made between the insurer and the
insured person after the liability has been incurred to a third party and after the
commencement of the insolvency or winding-up, as the case may be, nor any waiver,
assignment or other disposition made by or payment made to the insured person after
the commencement aforesaid, shall be effective to defeat the rights transferred to the
third party under this Chapter; but those rights shall be the same as if no such agreement,
waiver, assignment or disposition or payment has been made.
154. (1) For the purposes of sections 151, 152 and 153, a reference to "liabilities to
third parties" in relation to a person insured under any policy of insurance shall not
include a reference to any liability of that person in the capacity of insurer under some
other policy of insurance.
(2) The provisions of sections 151, 152 and 153 shall not apply where a company is
wound-up voluntarily merely for the purposes of reconstruction or of an amalgamation
with another company.
155. Notwithstanding anything contained in section 306 of the Indian Succession
Act, 1925, the death of a person in whose favour a certificate of insurance had been
issued, if it occurs after the happening of an event which has given rise to a claim
under the provisions of this Chapter, shall not be a bar to the survival of any cause of
action arising out of such event against his estate or against the insurer.
156. When an insurer has issued a certificate of insurance in respect of a contract of
insurance between the insurer and the insured person, then—
(a) if and so long as the policy described in the certificate has not been
issued by the insurer to the insured, the insurer shall, as between himself and any
other person except the insured, be deemed to have issued to the insured person a
policy of insurance conforming in all respects with the description and particulars
stated in such certificate; and
(b) if the insurer has issued to the insured the policy described in the
certificate, but the actual terms of the policy are less favourable to persons
claiming under or by virtue of the policy against the insurer either directly or
through the insured then the particulars of the policy as stated in the certificate, the
policy shall, as between the insurer and any other person except the insured, be
deemed to be in terms conforming in all respects with the particulars stated in the
said certificate.
157. (1) Where a person, in whose favour the certificate of insurance has been
issued in accordance with the provisions of this Chapter, transfers to another person
the ownership of the motor vehicle in respect of which such insurance was taken
together with the policy of insurance relating thereto, the certificate of insurance and
the policy described in the certificate shall be deemed to have been transferred in
favour of the person to whom the motor vehicle is transferred with effect from the date of
its transfer.
Explanation.—For the removal of doubts, it is herby clarified that such deemed

transfer shall include transfer of rights and liabilities of the said certificate of insurance
and policy of insurance.
(2) The transferee shall apply within fourteen days from the date of
transfer in
the prescribed form to the insurer for making necessary changes in regard to
the fact of transfer in the certificate of insurance and the policy described in
the certificate in his favour, and the insurer shall make the necessary
changes in the certificate and the policy of insurance in regard to the
transfer of insurance.
158. (1)Any person driving a motor vehicle in any public place shall, on
being
so required by a police officer in uniform authorised in this behalf by
the State Government, produce—
(a) the certificate of insurance;
(b) the certificate of registration;
(c) the pollution under control certificate;
(d) the driving licence;

(e) in the case of a transport vehicle, also the certificate of fitness
referred to in section 56, and the permit; and
any certificate or authorisation of exemption that has been
(f)
granted under this Act,
relating to the use of the vehicle.
(2) Where, owing to the presence of a motor vehicle in a public place, an
accident occurs involving death or bodily injury to another person, if the
driver of the vehicle does not at that time produce the required certificate,
driving licence and permit referred to in sub-section (1) to a police officer, he or
the owner shall produce the said certificates,
licence and permit at the police station at which the driver makes the report
required by section 134.
(3) No person shall be liable to conviction for offences under sub-section
(1) or sub-section (2) by reason of the failure to produce the required
certificate if, within seven days from the date on which its production was
required under sub-section (1),
or as the case may be, from the date of occurrence of the accident, he
produces the certificate at such police station as may have been specified by
him to the police officer who required its production or, as the case may be, to
the police officer at the site of the accident or to the officer-in-charge of the
police station at which he reported the accident:
Provided that except to such extent and with such modifications as
may be prescribed, the provisions of this sub-section shall not apply to the
driver of a transport vehicle.
(4)The owner of a motor vehicle shall give such information as he may
be required by or on behalf of a police officer empowered in this behalf
by the State
Government for the purpose of determining whether the vehicle was or was
not being driven in contravention of section 146 and on any occasion when
the driver was required under this section to produce the certificate of
insurance.
(5) In this section, the expression "produce the certificate of insurance"
means produce for examination the relevant certificate of insurance or such
other evidence as may be prescribed that the vehicle was not being driven in
contravention of section
146.
The police officer shall, during the investigation, prepare an
159.
accident information report to facilitate the settlement of claim in such form
and manner, within such time and containing such particulars and submit the
same to the Claims Tribunal and such other agency as may be prescribed.
160. A registering authority or the officer-in-charge of a police station shall, if so
required by a person who alleges that he is entitled to claim compensation in respect of
an accident arising out of the use of a motor vehicle, or if so required by an insurer
against whom a claim has been made in respect of any motor vehicle, furnish to that
person or to that insurer, as the case may be, on payment of the prescribed fee, any
information at the disposal of the said authority or the said police officer relating to the
identification marks and other particulars of the vehicle and the name and address of
the person who was using the vehicle at the time of the accident or was injured by it
and the property, if any, damaged in such form and within such time as the Central
Government may prescribe.
161. (1) Notwithstandinganything contained in any other law for the time being in
force or any instrument having the force of law, the General Insurance Council of
India formed under section 9 of the said Act and the insurance companies for the time
being carrying on general insurance business in India shall provide for paying in
accordance with the provisions of this Act and the scheme made under sub-section (3),
compensation in respect of the death of, or grievous hurt to, persons resulting from hit
and run motor accidents.
(2) Subject to the provisions of this Act and the scheme made under sub-
section (3), there shall be paid as compensation,—
(a) in
respect of the death of any person resulting from a hit and run motor
accident, a fixed sum of two lakh rupees or such higher amount as may be
prescribed by the Central Government;
(b) in
respect of grievous hurt to any person resulting from a hit and run
motor accident, a fixed sum of fifty thousand rupees or such higher amount as
may be prescribed by the Central Government.
(3)The Central Government may, by notification in the Official Gazette, make a
scheme specifying the manner in which the scheme shall be administered by the
Central Government or General Insurance Council, the form, manner and the time
within which applications for compensation may be made, the officers or authorities to
whom such applications may be made, the procedure to be followed by such officers or
authorities for considering and passing orders on such applications, and all other
matters connected with, or incidental to, the administration of the scheme and the
payment of compensation under this section.
(4) A scheme made under sub-section (3) may provide that,—
(a) a payment of such sum as
may be prescribed by the Central Government as
interim relief to any claimant under such scheme;
a contravention of any provision thereof shall be punishable with
(b)
imprisonment which may extend to two years, or with fine which shall not be less
than twenty-five thousand rupees but may extend to five lakh rupees or with
both;
(c) the
powers, functions or duties conferred or imposed on any officer or
authority by such scheme may be delegated with the prior approval in writing of
Central Government, by such officer or authority to any other officer or authority;
any provision of such scheme may operate with retrospective effect from
(d)
a date not earlier than the date of establishment of the Solatium Fund under the
Motor Vehicles Act, 1939 as it stood immediately before the commencement of this
Act:
Provided that no such retrospective effect shall be given so as to prejudicially
affect the interests of any person who may be governed by such provision.
162. (1)Notwithstanding anything contained in the General Insurance Companies
(Nationalisation) Act, 1972 or any other law for the time being in force or any instrument
having the force of law, the insurance companies for the time being carrying on general
insurance business in India shall provide in accordance with the provisions of this Act
and the scheme made under sub-section (2), for treatment of road accident victims
during the golden hour.
(2) The Central Government shall make a scheme for the cashless treatment of
victims of the accident during the golden hour and such scheme may contain provisions
for creation of a fund for such treatment.
163. (1) The payment of compensation in respect of the death of, or grievous hurt
to, any person under section 161 shall be subject to the condition that if any
compensation (hereafter in this sub-section referred to as the other compensation) or
other amount in lieu of or by way of satisfaction of a claim for compensation is awarded
or paid in respect of such death or grievous hurt under any other provision of this Act or
any other law for the time being in force or otherwise, so much of the other
compensation or other amount aforesaid as is equal to the compensation paid under
section 161, shall be refunded to the insurer.
(2) Before awarding compensation in respect of an accident involving the death of,
or bodily injury to, any person arising out of the use of a motor vehicle under any
provision of this Act other than section 161 or any other law for the time being in force,
the Claims Tribunal, court or other authority awarding such compensation shall verify as
to whether in respect of such death or bodily injury compensation has already been paid
under section 161 or an application for payment of compensation is pending under that
section, and such Tribunal, court or other authority shall—
if compensation has already been paid under section 161, direct the
(a)
person liable to pay the compensation awarded by it to refund to the insurer, so
much thereof as is required to be refunded in accordance with the provisions of
sub-section (1);
(b) if an application for payment of compensation is pending under section 161
forward the particulars as to the compensation awarded by it to the insurer.
Explanation.—For the purpose of this sub-section, an application for
compensation under section 161 shall be deemed to be pending—
(i) if
such application has been rejected, till the date of the rejection of the
application; and
(ii) in any other case, till the date of payment of compensation in pursuance of
the application.
164. (1)Notwithstanding anything contained in this Act or in any other law for the
time being in force or instrument having the force of law, the owner of the motor
vehicle or the authorised insurer shall be liable to pay in the case of death or grievous
hurt due to any accident arising out of the use of motor vehicle, a compensation, in
accordance with such payment schedule as may be prescribed by the Central
Government, to the legal heirs or the victim, as the case may be:
Provided that the minimum compensation to a person shall be a sum as may be
prescribed by the Central Government from time to time not exceeding ten lakh rupees in
case of death or not exceeding five lakh rupees in case of grievous hurt.
(2) Inany claim for compensation under sub-section (1), the claimant shall not be
required to plead or establish that the death or grievous hurt in respect of which the
claim has been made was due to any wrongful act or neglect or default of the owner of
the vehicle or of the vehicle concerned or of any other person.
(3) Where, in respect of death or grievous hurt due to
an accident arising out of the
use of motor vehicle, compensation has been paid under any other law for the time being
in force, such amount of compensation shall be reduced from the amount of
compensation payable under this section.
164A. (1) The Central Government, may make schemes for the provision
of interim relief to claimants praying for compensation under this Chapter.
(2)A scheme made under sub-section (1) shall also provide for procedure to
recover funds disbursed under such scheme from the owner of the motor
vehicle, where the claim arises out of the use of such motor vehicle or other sources
as may be prescribed by the Central Government.
(3) A scheme made under sub-section (1) may provide that—
any contravention of any provision thereof shall be punishable with
(a)
imprisonment for such term which may extend to two years, or with fine which
shall not be less than twenty-five thousand rupees but may extend to five lakh
rupees or with both; and
(b) the
powers, functions or duties conferred or imposed on any officer or
authority by such scheme may be delegated with the prior approval, in writing,
of Central Government, by such officer or authority to any other officer or
authority.
164B. (1) The Central Government shall constitute a Fund to be called the
Motor Vehicle Accident Fund and thereto shall be credited—
(a) a cess or tax or payment of a nature notified and approved by the
Central Government;
(b) any grant or loan made to the Fund by the Central Government;
any other source of income as may be prescribed by the Central

(c)
Government.
(2)The Fund shall be constituted for the purpose of providing compulsory
insurance cover to all road users in the territory of India.
(3) The Fund shall be utilised for the following, namely:—
treatment of a person who has been grievously hurt in an accident
(a)
till such time he may be stabilised;
compensation to representatives of a person who died in hit and run
(b)
motor accident, not caused by the deceased on whose behalf the claim is being
made, and for which accident no person may be held liable;
(c) compensation to a person grievously hurt in an accident where no fault
can
be fixed upon either that person or on any other person involved in the accident;
and
(d) compensation to such persons as may be prescribed by the Central
Government.
(4)The maximum liability amount that shall be paid in each case shall be
such as may be prescribed by the Central Government.
In all cases specified in clause (a) of sub-section (3), when the claim of
(5)
such person becomes payable, where amount has been paid out of this fund to
any person, the same amount shall be deductible from the claim received by
such person from the insurance company.
The Fund shall be managed by such authority or agency as the Central
(6)
Government may specify having regard to the following:—
(a) knowledge of insurance business of the agency;
(b) capability of the agency to manage funds; and
(c) any other criteria as may be prescribed by the Central Government.
The Central Government shall maintain proper accounts and other

(7)
relevant records and prepare an annual statement of accounts in such form as
may be prescribed by the Central Government in consultation with the
Comptroller and Auditor-General of India.
(8) The accounts of the fund shall be audited by the Comptroller and
Auditor- General of India at such intervals as may be specified by him.
(9) The Comptroller and Auditor-General of India or any person
appointed by him in connection with the audit of the accounts of the fund
under this Act shall have the same rights, privileges and authority in
connection with such audit of the
Government accounts and, in particular, shall have the right to demand the
production of books, accounts, connected vouchers and other documents
and papers and to inspect any of the offices of the Authority.
(10) The accounts of the fund, as certified by the Comptroller and
Auditor- General of India or any other person appointed by him in this behalf,
together with the audit report thereon, shall be forwarded annual to the
Central Government and the Central Government shall cause the same to be
laid before each House of the Parliament.
164C. (1) The Central Government may make rules for the purposes of
carrying into effect, the provisions of this Chapter.
(2) Without prejudice to the generality of the foregoing power, such rules
may provide for—
(a) the forms to be used for the purposes of this Chapter
including,—
(i) theform of the insurance policy and the particulars it shall
contain as referred to in sub-section (3) of section 147;
(ii)the form for making changes in regard to the fact of
transfer in
the certificate of insurance under sub-section (2) of section 157;
the form in which the accident information report may
(iii)
be prepared, the particulars it shall contain, the manner and the
time for submitting the report to the Claims Tribunal and the
other agency under sub-section (1) of section 159;
(iv) the form for furnishing information under section 160;
and
(v) the form of the annual statement of accounts for the
Motor Vehicle Crash Fund as referred to in sub-section (7) of
section 164B;
(b) the making of applications for and the issue of certificates of
insurance;
(c) the issue of duplicates to replace certificates of insurance lost,
destroyed
or mutilated;
(d)the custody, production, cancellation and surrender of
certificates of insurance;
(e) the records to be maintained by insurers of policies of insurance
issued under this Chapter;
(f) the identification by certificates or otherwise of persons or
vehicles exempted from the provisions of this Chapter;
the furnishing of information respecting policies of insurance
(g)
by insurers;
adopting the provisions of this Chapter to vehicles brought into
(h)
India
by persons making only a temporary stay therein or to vehicles
registered in a reciprocating country and operating on any route or
within any area in India by applying those provisions with prescribed
modifications;
(i)the requirements which a certificate of insurance is required to
comply with as referred to in clause (b) of section 145;
(j) the minimum premium and the maximum liability of an
insurer under sub-section (2) of section 147;
(k) such other amount to be paid to a person by an insurer
under the
proviso to sub-section (2) of section 147;
(l) the conditions subject to which an insurance policy shall be
issued and other matters related thereto as referred to in sub-section
(3) of section 147;
(m) thedetails of settlement, the time limit for such settlement and
the procedure thereof under sub-section (2) of section 149;
(n)the extent of exemptions and the modifications under the
proviso to sub-section (3) of section 158;
(o) the other evidence under sub-section (5) of section 158;
(p) such other agency to which the accident information report as referred
to in section 159 may be submitted;
(q) the time limit and fee for furnishing information under section 160;
(r) the higher amount of compensation in respect of death under

clause (a) of sub-section (2) of section 161;
(s)the fixed sum to be paid as compensation in respect of grievous
hurt under clause (b) of sub-section (2) of section 161;
(t)a sum to be paid as interim relief as referred to in clause (a)
of sub-section (4) of section 161;
(u) the payment schedule under sub-section (1) of section 164;
(v)the minimum compensation in case of death under the proviso to
sub-section (1) of section 164;
(w) such other sources from which funds may be recovered for the
scheme as referred to in section 164A;
(x) any other source of income that may be credited into the Motor
Vehicle Crash Fund under sub-section (1) of section 164B;
(y) the persons to whom compensation may be paid under clause (d) of
sub-section (3) of section 164B;

(z) the maximum liability amount under sub-section (4) of section
164B;
(za) the other criteria under clause (c) of sub-section (6) of section 164B;
(zb) any other matter which is to be or may be prescribed or in respect of
which provision is to be made by rules.
164D. (1) The State Government may make rules for the purposes of
carrying into effect, the provisions of this Chapter other than the matters
specified in section 164C.
(2) Without prejudice to the generality of the foregoing power, such rules
may provide for—
(a)the other authority under sub-section (5) of section 147.".
188. The Ministry has submitted to the Committee that Motor Vehicle third
Party Insurance Liability cover is a statutory requirement under the Motor
Vehicles Act, 1988. The Policy does not provide any direct benefit to the insured
but covers the liabilities of the insured against damages arising from
death/disability of third party loss or damage to third party property. As per the
Insurance Information Bureau (IIB) data, approximately 94% of the claims are up
to Rs.7.5 lakhs and that 96.13% are for less than Rs.10 lakhs. A perusal of the
number of claims paid by the private sector as well as Government sector
insurance companies shows that during the last 4 years (2011-12 to 2014-15),
claims in 93% to 97% of the death and grievous hurt cases were below Rs.10
lakhs (Source IIB). In the case of grievously hurt during the last five years,
almost 90% of the numbers of claims were up to Rs.5 lakhs. (as per IIB).
189. The Ministry further added that the Motor Vehicles (Amendment) Bill,
2016 aims to reform the third party motor vehicle insurance by providing for-
1. Fixing the limits of minimum compensation so as to ensure a fair and
reasonable compensation to accident victims from present limit of
Rs.50000/- to the revised limit of upto Rs.10 lacs in cases of no-fault
liability.
2. Providing for payment of part of compensation as interim relief
3. Increased compensation in hit & run cases of Rs.2 lacs as against the
present provision of Rs.25000/- in case of death and Rs.50000/- as
against Rs.12500/- in case of grievous hurt.
4. Treatment to the accident victims during golden hour.
5. Inclusion of hired drivers for compensation payment.
6. Specifying the upper limit for which the insurance company would be
liable for.
190. The Committee was informed that under section 147(2) of the Bill it
is proposes to cap the liability of general insurance companies to Rs.5 lakh to
10 lakh in compensating the third party claims in case of road accident. It
was submitted to the Committee that the proposal would expose millions of
Third Party Vehicle insurance policy holders to unlimited risk. If a
Tribunal or court awards compensation above 5 lakhs in case of injury and
Rs.10 lakhs in case of death, the owner of the vehicle has to bear the burden
of paying over and above to the third party. The Committee is of the view
that the basic aim of insurance is to defray individual risk collectively over a
vast group of premium contributors especially when the risk apprehended is
likely to be beyond all the means of the individual. If this main purpose to
save the individual is defeated there seems to be no necessity for insurance
policy to mitigate the risk which an individual could not meet by himself.
There is no mens rea in accidents and very purpose of insurance is to
underwrite the cost of unforeseen contingencies. FDI was liberalized in
insurance to strengthen the concept of insurance in a country in which life
essentially is exposed to all sorts of unforeseen contingencies and calamities.
Insurance Companies cannot run away from their basic responsibilities after
collecting hefty amount of no claim insurance premium.
191. The Committee, therefore, recommends that the capping of liability
of the insurance companies under third party insurance policy is patently
incorrect and against the interest of the millions of road users. The
Committee, therefore, recommends that proviso to section 147 (2) as
included in Clause 49 may be omitted.
192. The Committee was informed by various stakeholders that under
Section 147 of the Motor Vehicles Act 1988 a statutory cover has been given
to safeguard the interest of the driver, cleaner and employees engaged in the
working of the Motor Vehicles. However, in the proposed amendment the
statutory coverage of the driver, cleaner and employee engaged in the
vehicle are omitted from the liability of the Insurance Company.
193. The matter was taken up with the Ministry of Road Transport and
Highways and they have informed the Committee that the amendment
provides coverage to any person who dies or gets injured by a motor vehicle
in a public place and therefore, shall include driver, cleaner and employee
engaged in running the vehicle.
194. In fact, the amendment increases the ambit to cover employees who
are otherwise not covered under the Workmen's Compensation Act.
195. The Committee notes the assurance of the Ministry of Road
Transport and Highways and recommends that the Government should
ensure that the driver, cleaner and employees engaged in a vehicle are fully
protected under the insurance coverage. The Committee therefore
recommends that the “Driver, cleaner and employees engaged in the
working of the Motor Vehicles” be specifically mentioned in the clause.
196. The Committee is concerned over the apprehension expressed by the
States about getting all State Government's vehicles insured. The States
have submitted they are already in resource crunch and if the State will have
to spend a big amount for making premium payment, it would adversely
affect their exchequer. The Committee further recommends that the State
Governments may be exempted from paying premium for the Government
vehicles for two reasons, first these vehicles are in public service and second,
the amount saved from premium payment may be spent on giving
compensation to road accident victims.
197. Clause 50 says in section 165 of the principal Act, in the Explanation, for the
words, figures and letter "section 140 and section 163A", the word and figures "section
164" shall be substituted.
amendments proposed in Chapters X and XI.
198. Committee notes the changes.
Clause 51 says in section 166 of the principal Act,—
(i) in sub-section (2), the proviso shall be omitted;
in sub-section (4), for the words, brackets and figures "sub-section (6) of
(ii)
section 158", the word and figures "section 159" shall be substituted;
namely:—
"(5) Notwithstanding anything in this Act or any other law for the time
being in force, the right of a person to claim compensation for injury in an
accident shall, upon the death of the person injured, survive to his legal
representatives, irrespective of whether the cause of death is relatable to or
had any nexus with the injury or not.".
Clause 51 seeks to amend section 166 of the Act to ensure that a claim
for compensation does not abate on the death of the claimant and may be
continued by his legal representatives.
199. The Committee feels that the proposed sub-section (5) is a favourable step
towards the family of the injured who succumbed to injuries and it will help the
family financially.
196. Clause 52 says in section 168 of the principal Act, in sub-section (1),—
for the word and figures "section 162", the word and figure "section
(iv)
163" shall be substituted;
the proviso shall be omitted.
(v)
amendment proposed in Chapters X and XI.
200. The Committee notes the changes.
Clause 53 says In section 169 of the principal Act, after sub-section (3), the following
section shall be inserted, namely,—
"(4) For the purpose of enforcement of its award, the Claims Tribunal shall
also have all the powers of a Civil Court in the execution of a decree under the Code
of Civil Procedure, 1908, as if the award were a decree for the payment of money
passed by such court in a civil suit."
Clause 53 seeks to amend section 169 of the Act in order to confer
powers of the Civil Court upon the Claims tribunals with regard to
execution of a decree passed by itself.
201. The Committee feels that giving the power of civil court to the tribunal will
not only expedite the disposal of cases but also help to the family of the victim of
road accident to overcome the mental trauma and also for settlement of the
financial claims. The Committee appreciates this move.
202. Clause 54 says in section 170 of the principal Act, for the word and figures
"section 149" the word and figures "section 150" shall be substituted.
amendment proposed in Chapters X and XI.
203. The Committee notes the changes.
204. Clause 55 says -In section 173 of the principal Act, in sub-section (2), for the
words "ten thousand", the words "one lakh" shall be substituted;
Clause 55 seeks to amend section 173 of the Act in order to increase the
amount in controversy required for an appeal from the decision of the Claims
Tribunal to be heard by the High Court.
205. Regarding Amendment of Section -173 to increase the minimum claim amount
for which a person may appeal against an order of the claims Tribunal at the High
Court.
206. On this, the Ministry has said that the increased amount in the Amendment Bill
is to bring the minimum amount in line with present relation and also to prevent
frivolous litigation from reaching the High Court.
207. The Committee feels that the proposal to increase the amount from ten
thousand to one lakh required for an appeal from the decision of the claims
tribunal to be heard by the High Court is on correct lines.
208. The Committee was informed that at present more than 10 lakh Third Party
claims are pending before MACT and various judicial fora. With a view to address this
malady it was suggested that the law provides for all claimants of road accidents to first
approach insurance companies and file their claim details and documents. If they are
dissatisfied with the compensation they may take recourse to approach MACT/judicial
for a redressal.
209. This Committee was further informed that there is no hard coding of time limit
for filing of claims before MACT consequent to the 1994 amendment to MV Act.
Insurance companies receive intimation of claims filed before MACT after a lapse of 3-
4 years. Further, the court proceedings take another 4-5 years leading to inordinate
delay in settlement of compensation to victims of road accidents.
210. The Committee also noted that Delhi High Court had laid down an agreed
procedure for investigation and reporting of road accidents to the court and to the
insurer. Supreme Court has advised all the High Courts in the country to adopt similar
procedure. This procedure has strict time lines for both intimation as well as settlement
of Motor Accident Claims.
211. The Committee was informed that the delayed filing of claims and the courts
condemning such delays without exception has led to several false and fraudulent
claims -such as cooked up accidents, claims by wrong persons, multiple claims for the
same accident, over compensation etc.
212. The Committee notes that above suggestions are full of merits and need to
be codified in the legislation. The Committee, therefore, recommends that all
claimants of road accidents should first approach the insurance companies for
settlement of the claims and if they are dissatisfied they can approach the MACT
and judicial fora.
213. The Committee further recommends that every claim of settlement should
be filed before the MACT or with the insurer within a period of six months so that
it acts as a catalyst for quick settlement and, at the same time, acts as a deterrent
against deliberate delay in filing of claims as well as fraudulent/fictitious claims
being preferred. The Committee also recommends that necessary legislative
backing may be provided so as to ensure detailed accident report by police as
prescribed by the Supreme Court and which is followed in Delhi.
214. Clause 56 says in section 177 of the principal Act, for the words "one hundred
rupees" and "three hundred rupees", the words "five hundred rupees" and "one thousand
and five hundred rupees" shall respectively be substituted.
Clause 56 seeks to amend section 177 of the Act in order to enhance the
general penalties.
215. The Committee finds the increase in penalty as appropriate.
216. Clause 57 says after section 177 of the principal Act, the following section
"177A. Whoever contravenes the regulations made under section 118, shall
be punishable with fine which shall not be less than five hundred rupees, but may
extend to one thousand rupees.".
Clause 57 seeks to insert a new section 177A in the Act in order to provide for
penalties for violation of the Rules of the Road Regulations and other regulations
made under section 118 of the Act.
217. The Committee appreciates the proposal.
Clause 58 says in section 178 of the principal Act, in sub-section (3), for the words
" two hundred rupees", the words "five hundred rupees" shall be substituted.
Clause 58 seeks to amend section 178 of the Act in order to enhance penalties
for travelling without pass or ticket.
218. The Committee finds the increase in penalty from Rs. two hundred to five
hundred as appropriate.
(vi)in sub-section (1), for the words " five hundred rupees", the words "two
thousand rupees" shall be substituted;
(vii) in
sub-section (2), for the words " five hundred rupees", the words "two
thousand rupees" shall be substituted.
Clause 59 seeks to amend section 179 of the Act in order to enhance penalties
for disobedience of orders, obstruction, etc.
Clause 59
220. The Committee finds that the penalty for disobedience of order,
obstruction and refusal of information to be given by a person to public servant
while discharging his duties under this Act to be increased from five hundred to
two thousand rupees under Section 179 (1) & (2) as appropriate.
221. Clause 60 says in section 180 of the principal Act, for the words "which may
extend to one thousand rupees", the words " of five thousand rupees" shall be
substituted.
Clause 60 seeks to amend section 180 of the Act in order to enhance penalty
for allowing unauthorised persons to drive vehicles.
222. Section 180 deals with the owner of a motor vehicle who gives his vehicle to
such a person who is not authorized to drive a vehicle under this Act is liable to
pay fine of one thousand rupees. The Committee finds that the fine of five
thousand rupees would be appropriate as a deterrent because a person who is not
authorized to drive is a safety hazard.
223. Clause 61 says in section 181 of the principal Act, for the words "which may
extend to five hundred rupees", the words " of five thousand rupees" shall be
substituted.
Clause 61 seeks to amend section 181 of the principal Act. It enhances penalty for
driving vehicles in contravention of section 3 and section 4 of the Act.
224. Clause 61 Under Section 181 the punishment/penalty (imprisonment 3
months/Rs.five hundred rupees) has been prescribed for driving vehicles in
contravention of section 3 or section 4. The Committee thinks that to increase the
penalty to five thousand rupees is appropriate.
(i) in sub-section (1), for the words "which may extend to five
hundred rupees", the words " of ten thousand rupees" shall be
substituted;
(ii) in sub-section (2), for the words " one hundred rupees", the
words "ten thousand rupees" shall be substituted.
Clause 62 seeks to amend section 182 of the Act, in order to enhance the
penalties for offences relating to licences.
226. Section 182 deals with the offence of a person who has been disqualified
from having a driving license drives a vehicle in a public place or any place or
applies for a license without disclosing the endorsement to his earlier license. The
Committee notes that the fine to be imposed on such an offender is appropriate.
227. Clause 63 says for section 182A of the principal Act, the following
sections shall be substituted, namely:—
"182A. (1) Whoever, being a manufacturer, importer or dealer of motor
vehicles, sells or delivers or alters or offers to sell or deliver or alters, a motor
vehicle that is in contravention of the provisions of Chapter VII or the rules and
regulations made thereunder, shall be punishable with imprisonment for a term
which may extend to one year, or with fine of one lakh rupees per such motor
vehicle or with both:
Provided that no person shall be convicted under this section if he proves
that, at the time of sale or delivery or alteration or offer of sale or delivery or
alteration of such motor vehicle, he had disclosed to the other party of the
manner in which such motor vehicle was in contravention of the provisions of
Chapter VII or the rules and regulations made thereunder.
(2) Whoever, being a manufacturer of motor vehicles, fails to comply with
the provisions of Chapter VII or the rules and regulations made
thereunder, shall be punishable with imprisonment for a term which may
extend to one year or with fine which may extend one hundred crore rupees or
with both.
(3) Whoever, sells or offers to sell, or permits the sale of any component
of a motor vehicle which has been notified as a critical safety component by
the Central Government and which does not comply with Chapter VII or the
rules and regulations made thereunder shall be punishable with imprisonment for
a term which may extend to one year or with fine of one lakh rupees per such
component or with both.
(4) Whoever, being the owner of a motor vehicle, alters a motor vehicle,
including by way of retrofitting of motor vehicle parts, in a manner not permitted
under the Act or the rules and regulations made thereunder shall be punishable
with imprisonment for a term which may extend to six months, or with fine of
five thousand rupees per such alteration or with both.
182B. Whoever contravenes the provisions of the section 62A, shall
be punishable with fine which shall not be less than five thousand rupees, but
may extend to ten thousand rupees.".
Clause 63 seeks to amend section 182A of the Act, in order to
enhance penalties for contravention of provisions of Chapter VII by
manufacturers, importers, dealers and owners of motor vehicles. It is also
proposed to insert a new section 182B in the Act in order to provide for
penalty for registration and issuance of certificate of fitness to oversized
vehicles.
228. Clause 63 speaks about the punishment prescribed for offences related to
construction, manufacture, sale and alteration of motor vehicles and its
components. The Committee finds that proposed substitution is good for checking
unscrupulous elements in the Motor Vehicle industry both the dealer as well as the
manufacturer and of course buyer upto some extent.
229. As it is a fact that any alteration or retrofitting which is not permissible
under this Act is detrimental to the environment as well as for pedestrians and
commuters. The Committee thinks that fine of Rupees hundred crore prescribed
in Section 182 A (2) to be awarded to such manufacturer who fails to comply with
the provisions of chapter VII of the Act will act as a deterrent.

(viii) in sub-section (1),—
after the words "Whoever drives", the words "or causes any person
(a)
who is employed by him or subjects someone under his control to drive" shall
be
inserted;
for the words "with fine which extend to four hundred
(b)
rupees, or, if having been previously convicted of an offence under
this sub-section is again convicted of an offence under this sub-
section, with fine which may extend to
one thousand rupees", the following shall be substituted, namely:—
"in the following manner, namely:—
(i) where such motor vehicle is a light motor vehicle
with fine which shall not be less than one thousand rupees
but may extend to two thousand rupees;
(ii) where such motor vehicle is a medium goods vehicle or a
medium passenger vehicle or a heavy goods vehicle or a

heavy passenger vehicle with fine which shall not be less
than two thousand rupees, but may extend to four thousand
rupees; and
(iii) for
the second or any subsequent offence under this sub-
section the driving licence of such driver shall be impounded as per
the provisions of sub-section (4) of section 206.".
(ii) sub-section (2) shall be omitted.
(iii) in sub-section (3), after the word "mechanical", the words "or
electronic" shall be inserted.
(iv) in sub-section (4), for the words, brackets and figure "sub-section
(2)", the words, brackets and figure "sub-section (1)" shall be substituted.
Clause 64 seeks to amend section 183 of the Act in order to enhance
the penalties for driving at excessive speed and to provide for different
penalties for different classes of motor vehicles.
231. The Committee feels that the proposed enhancement of penalties in

respective categories is appropriate.
232. Clause 65says in section 184 of the principal Act,—
(i) after the words "dangerous to the public", the words " or which
causes a sense of alarm or distress to the occupants of the vehicle, other
road users, and persons near roads," shall be inserted;
(ii) for the words "which may extend to six months or with fine which may
extend to one thousand rupees", the words "which may extend to one year
but shall not be
less than six months or with fine which shall not be less than one thousand
rupees but may extend to five thousand rupees, or with both" shall be
substituted;
for the words "which may extend to two thousand rupees", the
(iii)
words " of ten thousand rupees" shall be substituted;
(iv) the following Explanation shall be inserted, namely:—
"Explanation.— For the purpose of this section,—

(a) jumping a red light;
(b) violating a stop sign;
(c) use of handheld communications devices while driving;
(d) passing or overtaking other vehicles in a manner contrary to

law;
(e) driving against the authorised flow of traffic; or
(f) driving in any manner that falls far below what would be
expected of a competent and careful driver and where it would be
obvious to a competent and careful driver that driving in that
manner would be dangerous.".
shall amount to driving in such manner which is dangerous to public.
penalties for driving dangerously. It also seeks to insert an explanation
giving examples of acts that are considered driving in a manner dangerous
to the public, such as jumping a red light, violating a stop sign, use of
handheld communication devices while driving, passing or overtaking
any motor vehicle in violation of law, etc.
233. Amendment in Clause 65 has given some explanation under sub section
(iv). It was submitted before the Committee that these explanations may be
misinterpreted and misread by the law enforcement agencies such as police.
Jumping a red light means a vehicle has crossed the stop line when the light was
not green but sometimes duration of amber light is too short and a vehicle cannot
pass from one side to another side and the driver just reaches other side when the
light is already red and he comes under the ambit of red light jumping. Under 184
(iv) (d) explanation is passing or overtaking other vehicles in a manner contrary to
law. One of the stakeholders submitted that many times heavy vehicle is moving
slowly in right lane and a car wants to overtake but overtaking is not allowed from
left and if he does he will commit the offence of wrong side overtaking.
234. This Clause seeks to amend Section 184 in order to enhance penalties for
driving dangerously indulging in such activities during driving which may
endanger others‟ lives. The Committee feels that sometimes a person who has not
committed mistake as such but was caught on wrong foot because of others‟ fault,
then he should not be penalized heavily. The Committee recommends that before
applying law, technical things like signals, signages, stop-signs, divider etc. may be
placed correctly. Proper training to police officials is also essential.
235. At present the police agencies are implementing the provisions as per their
whims and fancies. There is no standardization of technical aspect which can be
followed by the public.
236. The Committee recommends that the Government should come out with
appropriate rules and regulations to decide and define what constitute lane
driving, red light jumping, violation of signals etc.
237. The Committee also recommends that signage should be uniform based on
certain technical parameters and standards and the signage should be exclusively
erected only by authorized authorities such as NHAI on National highways and
State PWD Departments for State highways.
238. The Committee was informed that draft Road Traffic Regulations are
pending with the Government. The Committee recommends that the proposed
Road Traffic Regulation by virtue of powers conferred by the Section 118 of the
Motor Vehicle Act 1988 should be notified along with the present Amendment Bill.
239. The Committee further recommends that parts A &B of the first schedule
of the Act needs revision as the same is not updated and should also comply with
the UN Convention of road signs and signals of 1969 to which India is a signatory.
Road marking, signals and miscellaneous devices should also be included in the
schedule.
(i)in clause (a), after the words "breath analyser,", the words "or in any
another test including a laboratory test," shall be inserted;
(ii) for the words "which may extend to two thousand rupees", the
words " of
ten thousand rupees" shall be substituted;
(iii) the words " if committed within three years of the commission of the
previous similar offence," shall be omitted;
(iv) for the words "which may extend to three thousand rupees", the words "of
fifteen thousand rupees" shall be substituted;
(v) for the Explanation, the following Explanation shall be substituted, namely:—
"Explanation.— For the purposes of this section, the expression
"drug" means any intoxicant other than alcohol, natural or synthetic, or
any natural material or any salt, or preparation of such substance or
material as may be notified by the Central Government under this Act
and includes a narcotic drug and psychotropic substance as defined in
clause (xiv) and clause (xxiii) of section 2 of the Narcotic Drugs and
Psychotropic Substances Act, 1985.".
the penalties for driving under the influence of alcohol or drugs.
241. A stakeholder submitted before the Committee that one who has in his
blood more than 30 MG per 100 ML of blood portion of alcohol to be tested by a
“breath alcohol analyzer", comes under the category of person who is drunk.
There are two tests when a person takes a breath, the breath alcohol tester
converts it by a formula into blood alcohol ratio. Now, the Government of India
has not decided the formula if it is 1:2100; 1:2300. There are three conversion
ratio equally used in the entire world based upon the type of a body we have and
the type of food we eat. So, when we talk about drunken driving with breath
alcohol analyzer, we still don't have a formula (breath to blood alcohol ratio to
change), but when we talk about going to the laboratory or a breath alcohol
analyzer, we have to write the conversion between breath and blood. Otherwise,
we will again run into a huge problem. Secondly, there is the issue of apparatus.
Regarding breath alcohol analyzers, there is no stipulation of type approval
standards what should be a breath alcohol analyzer.
242. The Committee heard the views of States, private stakeholders and the
Ministry also on the menace of drunken driving and also driving after taking
drugs. The Committee after hearing the views came to the conclusion that to find
out the alcohol in the blood of driver is easier but the modalities to trace the drugs
is not available at present. It is a fact that the drunk driving is a big menace on
the road and many accidents take place due to the fact that the driver of the
vehicle was under the influence of alcohol or drugs while driving.
243. The Committee recommends that the Ministry should impose stringent
penalty on such driver who was caught driving after drinking. Such driver
endangers the lives of his own , other occupants of the vehicle and other persons
on the road.
244. After hearing the witnesses, the Committee notes that method of testing the
alcohol in the blood of offender is not foolproof and the standard of "breath
analyzer" is also not good enough which could give the authentic report. The
Committee recommends that the Ministry should go for testing machines of
international standard that should prescribe standards for breath analyzer
machines and various parameters to decide drunkenness.
245. The Committee notes that drunken driving is a major cause of road
accidents. This malady needs to be dealt with a firm hand. The Committee got
suggestions to the effect that if a drunken driver commit an accident which results
in the death of persons the former should be dealt under the provisions of culpable
homicide not amounting to murder under the relevant Sections of IPC. The
Committee, therefore, recommends that the Government may amend the
necessary legislations to include the deaths due to drunken driving as culpable
homicide not amounting to murder.
246. The Committee also recommends that if the drunken driver commits an
accident, his action should not be construed as mere 'negligence' rather it should
be treated as a premeditated commitment of a crime and the drunken driver
should be made punishable under relevant provisions of IPC depending on the
consequences of the accident.
247. Clause 67 says in section 186 of the principal Act, for the words "two hundred
rupees" and "five hundred rupees", the words "one thousand rupees" and "two
thousand rupees" shall respectively be substituted.
penalties for driving when mentally or physically unfit to drive.
248. The Committee notes the increase in the penalty to be increased for driving
when mentally or physically unfit to drive. The Committee finds the increased
penalty is appropriate.
(i)for the brackets and letter "(c)" the brackets and letter "(a)" shall be
substituted;
(ii)for the words "three months", the words "six months" shall be substituted;
(iii) for the words "which may extend to five hundred rupees", the words " of
five thousand rupees" shall be substituted;
(iv) for the words "six months", the words "one year" shall be substituted;
and
(v) for the words "which may extend to one thousand rupees", the words " of
ten thousand rupees" shall be substituted.
penalties for offences relating to accident.
250. The Committee notes the change in penalty to be incorporated in Section
187 of the principal Act, which is for the offences committed relating to an
accident.
Clause 69 in section 189 of the principal Act,—
(vi) for the words "one month", the words "three months" shall be
substituted;
(vii) for the words "which may extend to five hundred rupees", the
words "of five thousand rupees" shall be substituted;
(viii) after the words "with both", the words ", and for a subsequent
offence shall be punishable with imprisonment for a term which may extend to one
year, or with fine of ten thousand rupees; or with both." shall be inserted.
penalties for racing and trials of speed.
251. The Committee notes and finds it appropriate to increase the penalties for
the offence of racing and trials of speed. The Committee feels that the fast driving
vehicle is a big nuisance on road and it endangers lives of pedestrians as well as
commuters. It is further added here that on most of the roads in a place like
Delhi, speed limit is same what was written some 20-30 years back. The
Committee recommends that speed limit on different roads may be reconsidered
in view of increasing number of vehicles.
252. The Committee notes that speed limit in Indian roads are up to 80 Km in
most of the National Highways. In certain cases the roads were designed for a
speed up 120 km, but the maximum speed limit permitted is 100 km. The
Committee notes that most of the accidents happen due to over speeding of
vehicles. The Committee also notes that most of the vehicles manufactured in
India are with a capability of driving more than 180-Km/hr. In some cases the
vehicles are manufactured for more than 240 Km/hr. capability. These vehicles act
like a missile or rocket if involved in an accident. During the deliberations of the
Committee, one stakeholder was asked to respond on the futility of high speed
vehicles when the speed limits are upto a maximum of 100 km/hr. They informed
the Committee that for acceleration purposes high end speed engines are required.
They could not give any other explanation. The Committee feels that these
manufactures are following standards of European and American countries and
the same standards and technologies are being implemented in India.
253. The Committee recommends that the Government should formulate the
necessary legislation to limit the acceleration capability of vehicles manufactured
for use in India to speed limit as per the infrastructure availability of the country.
254. The Committee also notes that slow moving vehicles are a hazard in
National Highways. The Committee, therefore, recommends that minimum speed
limit should be prescribed for National Highways according to place and amount
of traffic.
(a)for the words "which may extend to two hundred and fifty rupees"
the words " of one thousand five hundred rupees" shall be
substituted;
(b) for the words "which may extend to one thousand rupees"
the words "of five thousand rupees" shall be substituted; and
(c)after the words "with both", the words, and for a subsequent
offence shall be punishable with imprisonment for a term which may
extend to six months, or with a fine of ten thousand rupees for
bodily injury or damage to property" shall be inserted.
(d) for the words "a fine of one thousand rupees", the words
"imprisonment for a term which may extend to three months, or with fine
which may extend to ten thousand rupees or with both and he shall be
disqualified for holding licence for a period of three months" shall be
substituted; and
(e) for the words "a fine of two thousand rupees", the words
"imprisonment for a term which may extend to six months, or with fine which
may extend to ten thousand rupees or with both" shall be substituted; and
(f) for the words "which may extend to three thousand rupees", the words
"of ten thousand rupees and he shall be disqualified for holding licence for a
period of three months" shall be substituted; and
(g) for the words "which may extend to five thousand rupees", the
words "of twenty thousand rupees" shall be substituted;
penalties for using vehicle in unsafe condition.
256. Section 190 of the Principal Act speaks about using a vehicle by a person in
an unsafe condition. Such vehicle may endanger other‟s lives in a public place;
can cause bodily injury or damage to property. Clause (3) speaks about such
carriage which are dangerous or hazardous nature to human life. The Committee
finds that the consequences of a vehicle which is not fit to run on the road and
may cause harms to people, environment or damages to other‟s property fall
under serious category hence increase in penalty is appropriate.
257. Clause 71 says Section 191 of the principal Act shall be omitted.
Clause 71 seeks to omit section 191 of the Act, which deals with sale of
vehicle in or alteration of vehicle to condition contravening the Act.
258. The Ministry has proposed to omit the Section 191 of the Principal Act
which deals with the sale of vehicle in or alteration of vehicle to condition
contravening the Act. The Committee is unable to understand why this Section
has to be omitted. The Committee recommends that the Ministry should
prescribe provisions to the effect that importer or seller of motor vehicle will not
sell any vehicle which contravenes this Act.
259. Clause 72 says in section 192 of the principal Act, the following Explanation
shall be inserted, namely:
"Explanation.— Use of a motor vehicle in contravention of the
provisions of
section 56 shall be deemed to be a contravention of the provisions of
section 39 and shall be punishable in the same manner as provided in sub-
section (1).".
Clause 72 seeks to amend section 192 of the Act in order to provide that use of a
motor vehicle in contravention of provisions regarding certificate of fitness shall
be deemed as use of a motor vehicle not registered under the Act and shall be
punishable in the same manner.
260. The Committee notes the proposed amendment.
Clause 73 in section 192A of the principal Act, in sub-section (1),—
(i) after the words "for the first offence with", the words
"imprisonment for a term which may extend to one year and" shall
be inserted;
(ii) for the words "which may extend to five thousand rupees but shall
not be less than two thousand rupees", the words " of ten thousand
rupees" shall be substituted;
(iii) for the words "one year", the words "two years" shall be
substituted;
(iv) for the words "three months", the words "six months" shall be
substituted;
(v) for the words "which may extend to ten thousand rupees but shall
not be less than five thousand rupees", the words "of twenty thousand
rupees" shall be substituted.
Clause 73 seeks to amend section 192A of the Act in order to enhance the penalties
for using a transport vehicle in contravention of section 66.
261. The Committee feels that the penalty prescribed for different offences
under this Clause is little bit on higher side. The Committee recommends that in
Section 192 A (1) (i) imprisonment for a term may be kept as 6 months instead of
one year. In 192 A 1 (iii) maximum one year should remain there and in 192 A
1(v) ten thousand rupees is sufficient.
262. Clause 74 says after section 192A in the principal Act, the following section
"192B. (1) Whoever, being the owner of a motor vehicle, fails to make
an
application for registration of such motor vehicle under sub-section (1) of
section 41 shall be punishable with fine of five times the annual road tax or
one-third of the lifetime tax of the motor vehicle whichever is higher.
(2) Whoever, being a dealer, fails to make an application for the
registration of a new motor vehicle under the second proviso to sub-section
(1) of section 41 shall be
punishable with fine of fifteen times the annual road tax or the lifetime tax of
the motor vehicle whichever is higher.
(3)Whoever, being the owner of a motor vehicle, obtains a certificate
of registration for such vehicle on the basis of documents which were, or by
representation of facts which was, false in any material particular, or the
engine number or the chassis
number embossed thereon are different from such number entered in the
certificate of registration shall be punishable with fine of ten times the annual
road tax or two-third of the lifetime tax of the motor vehicle whichever is
higher.
(4) Whoever, being a dealer, obtains a certificate of registration for such
vehicle on the basis of documents which were, or by representation of facts
which was, false
in any material particular, or the engine number or the chassis number
embossed thereon are different from such number entered in the certificate of
registration shall be punishable with fine of thirty times the annual road tax or
twice the lifetime tax of the motor vehicle whichever is higher.
Clause 74 seeks to insert a new section 192B in the Act to provide for
imposition of penalty on an owner or dealer, as the case may be, for
failure to make an application for registration and for false representation
of facts or documents.
263. The Committee finds that the insertion of new section 192 B is a welcome
step towards allowing only authorized/registered vehicle to run on the road and
penalty for violation of the rules proposed in 192 B (1) and (2) are justified but the
Committee feels that in obtaining a certificate based on false representation of
facts by a person or dealer is a serious offence and may be given harsher
punishment than that proposed. In 192 B (3) & (4) the Committee recommends
that such offender may be given imprisonment for a term which may extend to
minimum 6 months and maximum upto one year. This may be added in the Bill.
264. Clause 75 In the principal Act,—
(A) in section 193, in the marginal heading, for the words "agents and
canvassers", the words "agents, canvassers and aggregators" shall be
substituted;
(B) section 193 shall be numbered as sub-section (1) thereof, and—
(i) in sub-section (1) as so numbered,—

for the words "which may extend to one thousand
(a)
rupees", the
words "of one thousand rupees" shall be substituted;
(b) for the
words "which may extend to two thousand
rupees", the words "of two thousand rupees" shall be substituted;
(ii) after sub-section (1) as so numbered, the following sub-
sections shall be inserted, namely:—
"(2) Whoever engages himself as an aggregator in
contravention of the provisions of section 93 or of any rules
made thereunder shall be
punishable with fine up to one lakh rupees but shall not be less than
twenty-five thousand rupees.

(3) Whoever, while operating as an aggregator contravenes a condition of the
licence granted under sub-section (4) of section 93, not designated by the State
Government as a material condition, shall be punishable with fine of five
thousand rupees.".
penalties for agents and canvassers and provide for penalties for
aggregators for contravening the provisions of this Act and the conditions
of licence.
265. All India Federation of Motor Vehicle Department Technical Executive Officers
Association has submitted before the Committee that there are no penalties on
aggregators and consequently, it does not extend adequate protection to operators.
Moreover, the entry of aggregators would adversely affect the local taxi operators.
Hence it is not in public interest.
266. States of Tamilnadu , Karnataka, Odhisha have echoed the same conern. The
Ministry has replied that section 193, as amended in this Bill, clearly lays down
penalties for aggregators for actions in contravention of the provisions of this Act.
267. Ministry is of the opinion that all modes of public transport should be promoted
so as to reduce dependence on personalized transport which will reduce congestion and
pollution.
268. The Committee is satisfied with the provision proposed in the Section 193
of the Principal Act. The Committee feels that in metros number of aggregators
are increasing day by day and in the competitive situation aggregator and other
like group/agent may resort to malpractices to get more profit hence to rein them
the penalty in sub-section (2) is appropriate.
(a) the word "minimum" shall be omitted;
(b) for the words "of two thousand rupees and an additional amount of
one thousand rupees per tonne of excess load", the words "of twenty
thousand
rupees and an additional amount of two thousand rupees per tonne of
excess load" shall be substituted;
(c) the following proviso shall be inserted, namely:—
"Provided that such motor vehicle shall not be allowed to move
before such excess load is removed or is caused or allowed to be
removed
by the person in control of such motor vehicle.".
after sub-section (1), the following sub-section shall be inserted,
(ii)
namely:— "(1A) Whoever drives a motor vehicle or causes or
allows a motor vehicle
to be driven when such motor vehicle is loaded in such a manner that the
load or
any part thereof or anything extends laterally beyond the side of the body or
to
the front or to the rear or in height beyond the permissible limit shall be
punishable with a fine of twenty thousand rupees, together with the
liability to pay charges for off-loading of such load:
Provided that such motor vehicle shall not be allowed to move before
such load is arranged in a manner such that there is no extension of the
load
laterally beyond the side of the body or to the front or to the rear or in
height beyond the permissible limit:
Provided further that nothing in this sub-section shall apply when
such motor vehicle has been given an exemption by the competent
authority authorized
in this behalf, by the State Government or the Central Government, allowing
the
carriage of a particular load.".
(iii) in
sub-section (2), for the words, "which may
extend to three thousand rupees" the words "of forty
penalties for driving vehicle exceeding permissible weight. It also provides that
a motor vehicle will not be allowed to move before excess load is removed.
270. The stakeholders submitted before the Committee that for overloading of
vehicles all people involved in the allowing of overloaded vehicles in their jurisdiction
should be penalized including truckers, transporter, consignor, consignee, law
enforcement toll concessionaires, PDs, PIUs.
271. The Ministry has replied that section 194 proposes penalty on the person who
drives or causes or allows to be driven an overloaded motor vehicles. This is very wide
language which covers trucker who drives an overloaded motor vehicle or transporter,
consignor, consignee or others who cause such overloaded motor vehicle to be driven.
272. The Committee observes that the penalty Clause given in Section 194 of the
Principal Act is appropriate but at the same time the Committee is of the view that
today Motor transport is the main source of transporting the goods from one place
to another and to earn extra profit transporter carry extra loads on their vehicle.
273. The Committee feels that extra load on a vehicle not only damages the road
but it also makes driving the overloaded vehicle risky. Overloaded vehicles are
extremely dangerous for the travelling public. They are the cause of large number
of accidents. The Committee further adds that the proviso to be inserted under
sub-section 1 'C' is a right measure towards curbing this problem. The
Committee recommends that the vehicle in no condition should be allowed to
move ahead unless and until the excess load has been removed from the vehicle
besides imposing fines for each tone of load. Harsh penalty may deter transporter
to indulge in wrong practice of overloading. At the same time, the Committee
suggests that at checking points, man power and machinery may be made
available so that this rule can be implemented successfully.
274. The Committee notes that a twenty tonne capacity vehicle often carry 30 to
35 tonnes. The Committee feels that the vehicle manufacturers have to redefine
their technology to ensure that if a vehicle which is overloaded beyond its axle
power is immobilized.
275. The Committee notes that the linear dimensions of the vehicles which can
ply on the roads may be prescribed by the Government. Many a times, vehicles
which are carrying bulky oversized and protruding items like bagasse of
sugarcane, sugarcanes, husk, cotton, hay chaff of paddy, wheat and cotton etc. are
hindrances resulting in road accidents and also hindrance to smooth flow of
traffic. The Committee, therefore, recommends that the vehicles which are
oversized in linear dimensions should not be allowed to ply on roads.
276. Clause 77 says after section 194 in the principal Act, the following sections
"194A. Whoever drives a transport vehicle or causes or allows a
transport vehicle to be driven while carrying more passengers than is
authorized in the registration certificate of such transport vehicle or the
permit conditions applicable to such transport vehicle shall be punishable
with a fine of one thousand rupees per excess passenger:
Provided that such transport vehicle shall not be allowed to move
before the excess passengers are off-loaded and an alternative transport is
arranged for such passengers.
194B. (1) Whoever drives a motor vehicle without wearing a safety belt or carries
passengers not wearing seat belts shall be punishable with a fine of one thousand
rupees:
Provided that the State Government, may by notification in the Official
Gazette,
exclude the application of this sub-section to transport vehicles allowed
carrying standing passengers or other specified classes of transport
vehicles.
(2) Whoever drives a motor vehicle or causes or allows a motor
vehicle to be driven with a child who, not having attained the age of
fourteen years, is not secured by a safety belt or a child restraint system
shall be punishable with a fine of one
thousand rupees.
194C. Whoever drives a motor cycle or causes or allows a motor cycle
to be driven in contravention of the provisions of section 128 or the rules or
regulations made thereunder shall be punishable with a fine of one thousand
rupees and he shall be disqualified for holding licence for a period of three
months.
194D. Whoever drives a motor cycle or causes or allows a motor cycle
to be driven in contravention of the provisions of section 129 or the rules or
regulations made thereunder shall be punishable with a fine of one thousand
rupees and he shall be disqualified for holding licence for a period of three
months.
194E. Whoever while driving a motor vehicle fails to draw to the side of
the road,
on the approach of a fire service vehicle or of an ambulance or other
emergency vehicle as may be specified by the State Government, shall be
punishable with imprisonment for a term which may extend to six months, or
with a fine of ten thousand rupees or with both.
194F. Whoever —
(a) while driving a motor vehicle —
sounds the horn needlessly or continuously or more
(i)
than necessary to ensure safety, or
sounds the horn in an area with a traffic sign prohibiting
(ii)
the use of a horn, or
(b) drives a motor vehicle which makes use of a cut-out by which
exhaust gases are released other than through the silencer, shall be
punishable with a fine of one thousand rupees and for a second or
subsequent offence with a fine of two thousand rupees.
Clause 77 seeks to insert new provisions, viz., section 194A, 194B, 194C, 194D,
194E and 194F in the Act. Section 194A imposes a penalty for carriage of more
passengers than authorised in the registration certificate. Section 194B imposes
a penalty on persons for not wearing seat belts and for not seating children in a
safe manner. Section 194C imposes a penalty for carriage of more than two
persons, including the driver, on a motor cycle. Section 194D imposes a penalty
on persons for not wearing protective headgear while driving or riding a motor
cycles. Section 194E imposes a penalty for failing to draw to the side of the
road to provide passage for an emergency vehicle. Section 194F imposes a
penalty for sounding the horn unnecessarily while driving a motor vehicle.
277. Representative from Institute of Public Health submitted before the Committee
that law passed should have stringent penalties because one of the main reasons behind
high road crashes in India is the lighter penalties for violations. All India Motor
Transport Congress has submitted that penalties are exorbitant and will lead to
harassment, corruption and extortion. Penalties should be reasonable. There should be
scientific or photographic recording of fault and only on that basis, penalty should be
levied. Higher penalties would also lead to higher insurance charges.
278. The Ministry in reply to the above suggestions informed the Committee that the
Motor Vehicles (Amendment) Bill hikes penalties for violations significantly. The
Ministry further added that the proposed penalties were suggested after deliberations by
the Group of Transport Ministers (GoM) constituted by the Ministry of Road Transport
and Highways vide notification dated March 2, 2016.
279. The penalties have not been changed since 1989, therefore, have not retained
their deterrent effect.
280. New Section 136A also mandates the State Governments to ensure electronic
monitoring and enforcement and that the Central Government shall make rule for the
electronic monitoring and enforcement including speed cameras, CCTV, speed guns,
body wearable cameras etc. Hence in the future, electronic evidence of violations may
also be used in levying penalties.
281. Clause 77 of the proposed bill gives a new height to penalty to be charged
by the authority from vehicle owners/drivers etc.
282. The Committee feels that under Section 194A penalty of Rs.1,000 per
excess person is on higher side and Committee recommends that it should be
brought down to Rs.200 per person. Here, it would be pertinent to mention that
India is a developing country and in many parts of the country especially in rural
areas, transportation is a problem. People travel even on roof top of the bus. At
many places there is no government transport and people rely on private
buses/carriages. To impose penalty is not the solution to the problem.
283. Clause 78 says section 195 of the principal Act shall be omitted.
Clause 78 seeks to omit section 195 of the Act in order to eliminate discretion
on the imposition of fine on offender.
284. The Committee notes the proposed omission of the Section 195 from the
Act.
(i) after the word "shall be punishable", the words "for the first
offence" shall be inserted;
for the words "which may extend to one thousand rupees", the
(ii)
words "of two thousand rupees," shall be substituted; and
(iii)after the words "with both", the words ", and for a subsequent
offence shall be punishable with imprisonment for a term which may extend to
three months, or with fine of four thousand rupees, or with both." shall be
inserted.
the penalties for driving an uninsured motor vehicle.
286. A stakeholder submitted before the Committee that doubling of fine under Section
196 for driving without mandatory third party insurance is half hearted punishment to
habitual offenders. The penalty does not work because of limited enforcement and
leniency of courts in not prescribing imprisonment. Therefore there is need to ensure
that uninsured motor vehicle is impounded and driving licence is suspended and for
repeat offences permits and driving licenses should be revoked.
287. In response the Ministry has submitted that the penalties provided in the Motor
Vehicles Act, 1988 have not been revised since 1989. Therefore, there is a need for
upward revision for all the penalties provided under the Act.
288. The implementation of provisions of the MV Act 1988 is the responsibility of
States. Impounding of the vehicles is not practical solution for all types of violations.
289. The Committee was informed that more than half of the vehicles on road
are without a third party insurance. The Committee notes that the registration
tax is one time affair, likewise the third party insurance should also be made a one
time affair. The Committee recommends that every new vehicle purchased should
be made to pay at the time of registration the third party insurance for life time of
the vehicles.
(i) in sub-section (1), for the words "which may extend to five hundred
rupees",
the words "of five thousand rupees" shall be substituted;
(ii) in sub-section (2), for the words "which may extend to five
hundred rupees" the words "of five thousand rupees" shall be
substituted.
penalties for taking a motor vehicle without authority.
291. The Committee notes the proposed amendment to Section 197.
292. Clause 81 says in section 198 of the principal Act, for the words "with
fine which may extend to one hundred rupees", the words "with fine of one
penalties for unauthorized interference with a motor vehicle.
293. The Committee notes the proposed amendment to section 198.
Clause 82 says after section 199 of the principal Act, the following section shall be
"199A. (1) Where an offence under this Act has been committed by a
juvenile, the guardian of such juvenile or the owner of the motor vehicle shall be
deemed to be guilty of the contravention and shall be liable to be proceeded
against and punished accordingly:
Provided that nothing in this sub-section shall render such guardian or
owner liable to any punishment provided in this Act, if he proves that the offence
was committed without his knowledge or that he exercised all due diligence to
prevent the commission of such offence.
Explanation. — For the purposes of this section, the Court shall presume
that the use of the motor vehicle by the juvenile was with the consent of the
guardian of such juvenile or the owner of the motor vehicle, as the case may be.
(2) In addition to the penalty under sub-section (1), such guardian or owner
shall be punishable with imprisonment for a term which may extend to three years
and with a fine of twenty-five thousand rupees.
(3) The provisions of sub-section (1) and sub-section (2) shall not apply to
such guardian or owner if the juvenile committing the offence had been granted a
learner's licence under section 8 or a driving licence and was operating a motor
vehicle which such juvenile was licensed to operate.
(4) Where an offence under this Act has been committed by a juvenile, the
registration of the motor vehicle used in the commission of the offence shall be
cancelled for a period of twelve months.
(5) Where an offence under this Act has been committed by a juvenile, then
notwithstanding section 4 or section 7, such juvenile shall not be eligible to be
granted a driving licence under section 9 or a learner's licence under section 8
until such juvenile has attained the age of twenty-five years.
(6)Where an offence under this Act has been committed by a juvenile, then
such juvenile shall be eligible to be punished by fines as provided in the Act while
any custodial sentence may be modified as per the provisions of the Juvenile
Justice Act, 2000.".
Clause 82 seeks to insert a new section 199A in the Act to provide for
liability of guardian or owner of vehicle, as the case might be, for any
offence under this Act committed by a juvenile.
294. If a juvenile commits a crime after taking the control of the vehicle with or
without the consent of his guardian then the guardian may be held responsible for
Commission of the criminal Act. Then the punishment under section 199A(2)
may be evoked. The Committee agrees with the proposed amendments in Section
199 A (3), (4), (5) and (6).
(a) for the words, brackets and figures "punishable under section 177,
section 178, section 179, section 180, section 181, section 182, sub-section (1)
or sub-section (2) of section 183, section 184, section 186, section 189, sub-
section
(2) of section 190, section 191, section 192, section 194, section 196, or
section 198,", the words, brackets, figures and letters "punishable under
section 177, section 178, section 179, section 180, section 181, section 182,
sub-section (1) or sub-section (3) or sub-section (4) of section 182A, section
182B, sub-section (1) or sub-section (2) of section 183, section 184 only to the
extent of use of handheld communication devices, section 186, section 189,
sub-section (2) of section 190, section 192, section 192A, section 194, section
194A, section 194B, section 194C, section 194D, section 194E, section 194F,
section 196, section 198, shall be inserted;
(b) the following proviso shall be inserted, namely:
Provided that the State Government may, in addition to such

amount, require the offender to undertake a period of community
service.
(iv) after sub-section (2) the following provisos shall be inserted,
namely:—
"Provided that, notwithstanding compounding under this section,
such offence shall be deemed to be a previous commission of the same
offence for the purpose of determining whether a subsequent offence
has been committed:
Provided further that compounding of an offence will not
discharge the offender from proceedings under sub-section (4) of section
206 or the obligation
to complete a driver refresher training course, or the obligation to
complete community service, if applicable.".
composition of certain offences under the Act including provision of
community service as a condition for composition of an offence.
296. A stakeholder while giving his presentation before the Committee submitted
that offenders should be made to spend time in Emergence Surgical OPDs to see the
results of dangerous driving so as to learn the devastating consequences of their actions.
This will have impact on reducing dangerous driving practices. This measure may be
provided for offences such as dangerous driving, using mobile phones while driving,
speeding, DUI, jumping red lights, not wearing protective headgear.
297. Another stakeholder submitted that community service is time consuming and
may create feelings of stress and frustration. It may be replaced with driver refresher
training in order to develop road safety.
298. The Ministry has replied that under Section 200 the State Government have
been empowered to impose on the offender a requirement to undertake a period of
community service. State may specify the particulars of community service.
Community service is a global best practice which is designed to make an offender
understand the impact of his action on society by giving up his time and labour for the
benefit of the society at large.
299. Driver refresher training course has also been provided for offences related
directly to driving in an unsafe or illegal manner.
300. The Committee agrees with the amendment proposed in this Clause for
community service as a condition for composition of an offence. But it is not
known to the Committee what type of community service is supposed to be
performed by the offender. The Committee recommends that while giving
community service the State should take care that the service to be performed by
the offender may not be degrading in any way. The Committee notes that
compelling the violators to spend time in emergency surgical OPDs of road
accident victims is a good way of making them understand the consequences.
301. Clause 84 in section 201 of the principal Act,—
(h)the word "disabled" shall be omitted;
(b) for the words "fifty rupees per hour", the words "five hundred
rupees", shall be substituted;
(ii) in proviso to sub-section (1), for the words "Government Agency,
towing charges", the words "an agency authorised by the Central Government
or State Government, removal charges" shall be substituted.
namely:— "(3) Sub-section (1) shall not apply where the motor
vehicle has suffered
an unforeseen breakdown and is in the process of being removed.
(iv) after sub-section (3) the following Explanation shall be inserted,
namely:— "Explanation.— For the purposes of this section,
"removal charges"
includes any costs involved in the removal of the motor vehicle from one
location
to another, including by way of towing and also includes any costs
related to storage of such motor vehicle."
Clause 84 seeks to amend section 201 of the Act to enhance the
penalties for causing obstruction to free flow of traffic.
302. The Committee notes the amendment and finds that the penalty under
Section 201 proposed to be imposed is appropriate.
303. Clause 85 says In section 206 of the principal Act, after sub-section (3) the
"(4) A police officer or other person authorised in this behalf by the
State Government shall, if he has reason to believe that the driver of a
motor vehicle has committed an offence under any of sections 183, 184, 185,
189, 190, 194C, 194D, or 194E, seize the driving licence held by such driver
and forward it to the licensing authority for disqualification or revocation
proceedings under section 19:
Provided that the person seizing the licence shall give to the person
surrendering the licence a temporary acknowledgement therefor but such
acknowledgement shall not authorise the holder to drive until the licence
has been returned to him.".
Clause 85 seeks to amend section 206 of the Act to empower police
officers to impound the driving licence of a person accused of certain
offences such as driving dangerously (section 184), etc. and forwarding
the same for disqualification proceedings under section 19 of the Act.
304. One stakeholder submitted before the Committee that under the provisions of
Section 206, the provisions related to the enforcement action to be carried and the team
of Enforcement Officers by which it is carried, provisions relating to the order of
release and impounding of vehicles, all such provisions should be inserted in the Rules
read along with Act.
305. The Ministry has replied that the same may be prescribed through Rules made
under this Act.
306. The Committee observes that the proposed amendment under Section 206,
sub-section (4) speaks about a police officer/authorized person of State may seize
the driving license held by such driver who violates Section 183-driving at
excessive speed and Section 184-driving dangerously. Section 185 Drunken
driving, 189-Racing and trials of speed; 190-suing of vehicle in unsafe condition;
194C-driving overloaded vehicle, 194-D not wearing protective headgear and 194
E- failure to allow free passage to emergency vehicles. The Committee notes that
the fines are revised after a period of almost 30 years. The Committee was
informed that sanction of Parliament is required for increasing the fines. That is
why fine was stagnant in these years which resulted in its non-deterrence on traffic
offenders. The Committee, therefore, recommends that a Clause should be added
in this Bill to give effect to increase of fine @10% every year through executive
orders.
307. Clause 86 says After section 210 of the principal Act, the following sections
shall inserted, namely:—
"210A. Subject to conditions made by the Central Government, a

State Government, shall, by notification in the Official Gazette, 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, shall be in force in such State and
different multipliers may be applied to different classes of motor vehicles as
may be classified by the State Government for the purpose of this section.
210B. Any authority that is empowered to enforce the provisions of

this Act shall, if such authority commits an offence under this Act, shall be
liable for twice the penalty corresponding to that offence under this Act.".
Clause 86 seeks to insert new provision, viz., sections 210A and 210B in the
Act. Section 210A empowers the State Governments to apply different
multipliers to different fines and such multiplies may be different for different
classes of motor vehicles.
Section 210B provides for the imposition of twice the fine otherwise provided in
the Act whenever an offence is committed by any person entrusted with the
enforcement of the Act.
308. A stakeholder also suggested points on rationalization of penalties for life
threatening offences. Other countries use a graduated penalty system with fines
increased for repeat offences. Need to uphold stringent penalties proposed in the Bill.
Fines should also be made part of guidelines and not the Act so as to provide flexibility
of further amendment in due course of time and allow State Governments to increase
penalties if required.
309. The Ministry has replied that substantial increase in penalties has been
proposed. The Bill increase penalties for repeat offences also.
304. New Section 210A allows State Governments to increase penalties by

specifying, by notification, a multiplier to be applied to each fine under this Act. Hence
State Governments have been provided flexibility with respect to fines and increase
penalties in due course of time.
310. The Committee agrees with the proposed amendment under Section 210 A
and B.
311. Clause 87 says after section 211 of the principal Act, the following section
"211A. (1) Where any provision of this Act or the rules and regulations
made thereunder provides for—
(a) the filing of any form, application or any other document
with any office, authority, body or agency owned or controlled by the
Central Government
or the State Government in a particular manner;
(b)the issue or grant of any licence, permit, sanction, approval
or endorsement, by whatever name called in a particular manner;
(c) the receipt or payment of money in a particular manner,
then notwithstanding anything contained in such provision, such requirement

shall
be deemed to have been satisfied if such filing, issue, grant, receipt or payment, as
the
case may be, is effected by means of such electronic form as may be prescribed
by the Central Government or the State Government, as the case may be.
(2) The CentralGovernment or the State Government shall, for the
purpose of sub-section (1), prescribe —
(a) the manner and format in which such electronic forms and documents
shall be filed, created or issued; and

(b) the manner or method of payment of any fee or charges for
filing, creation or issue of any electronic document under clause (a).".
Clause 87 seeks to insert a new section 211A in the Act to provide that all
documents, forms and applications under this Act may be filed in an
electronic format to be prescribed by the Central or State Governments, as
may be applicable.
312. The stakeholders feel that insertion of Section 211 A which deals with
electronic documents, etc. would lead to a situation where the power to deal with
applications or any other form of transaction would be taken away from officials of the
State Government. Such an insertion is unwarranted.
313. The Ministry in its reply said that Section 211 A is merely the extension of the
law codified in Section 41(6) of the IT Act 2000, according to which any document
which can be filed in a physical form may also be filed in an electronic form subject to
any rules that may be made by the appropriate Government in that behalf. It does not
change the division of powers as envisaged in MV Act, in any form or manner.
314. The Committee recommends that the digitalization and making the things
electronically available should be done on priority but it should not be forced and
it may be done in a phased manner because some states and some centres within
the State may not be in a position to switch over to electronically equipped office
in a short period due to financial shortage and lack of manpower.
(C) In section 212 of the principal Act,—
(a)after the words, brackets and figures "the proviso to

sub-section (1) of section 112”, the words and figures
"section 118" shall be inserted;
(b) for the words, brackets, figures and letter "sub-
section (4) of section 163A", the word, figures and letter
"section 164, section 177A" shall be inserted;
namely:—
"(5) Every notification issued by the State Government under
section 210A shall be laid, as soon as may be after it is made, before
each House of the State Legislature where it consists of two Houses,
or where such Legislature consists of one House, before that House,
while it is in session for a total period
of thirty days which may be comprised in one session or in two or more
successive
sessions, and if, before the expiry of the session immediately following
the session or the successive sessions aforesaid, the House agrees or both
Houses agree, as the case may be, in making any modification in the
notification or the House agrees or both Houses agree, as the case may be,
that the notification should not be issued, the notification shall thereafter
have effect only in such
modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the
validity of anything previously done under that notification.".
placing in the State Legislature of notifications made under section 210A
for legislative approval.
315. Clause 88: The Committee notes the proposed amendment to be
incorporate as sub-section (4) of Section 212.
215A. (1) Notwithstanding anything else contained in this Act the
Central Government shall have the power to delegate any power or
functions that have been conferred upon it by the Act to any person or
groups of persons and authorise such person or group of persons to
discharge any of its powers, functions and duties under
this Act.
(2) Notwithstanding anything else contained in this Act the State
Government shall have the power to delegate any power or functions that
have been conferred upon it by the Act to any person or groups of persons
and authorise such person or group of persons to discharge any of its
powers, functions and duties under this Act.
215B. (1) The Central Government may make rules for the purposes of
carrying into effect, the provisions of this Chapter.
(2) Withoutprejudice to the generality of the foregoing power, such
rules may provide for—
(a) the use of electronic forms and means for the filing of documents,
issue
or grant of licence, permit, sanction, approval or endorsements and the
receipt or payment of money as referred to in section 211A; and
(b)the minimum qualifications which the Motor Vehicles
Department officers or any class thereof shall be required to possess
for appointment as such, as referred to in sub-section (4) of section
213.
215C. (1) The State Government may make rules for the purposes of
carrying into effect, the provisions of this Chapter other than the matters
specified in section 215F.
(2) Withoutprejudice to the generality of the foregoing power, such
rules may provide for—
(a) the use of electronic forms and means for the filing of documents,
issue
or grant of licence, permit, sanction, approval or endorsements and the
receipt or payment of money as referred to in section 211A;
(b) theduties and functions of the officers of the Motor Vehicle
Department and the discharge thereof, the powers to be exercised by
such officers (including the powers exercisable by police officers
under this Act) and the conditions
governing the exercise of such powers, the uniform to be worn by
them, the authorities to which they shall be subordinate as referred to in
sub-section (3) of section 213; and
(c) suchother powers as may be exercised by officers of the Motor
Vehicles Department as referred to in clause (f) of sub-section (5) of
section 213.
Clause 89 seeks to insert new provisions, viz., sections 215A, 215B
and 215C in the Act. Section 215A enables the Central and State
Governments to delegate any power or function to any person or group
and authorise such person or group to discharge any of the powers,
functions, or duties conferred under the Act. Section 215B enumerates the
rule making powers granted to the Central Government under this
Chapter. Section 215C enumerates the rule making powers granted to the
State Government under this Chapter.
317. A number of States has opposed the idea of inserting new section 215 A and
said that this is a proposal to delegate power of enforcement to private agency. It will
create a menace and panic for vehicle operators. Anti-social elements and criminals
will loot operators openly. Enforcement of Act and Rules and checking of vehicles
should be entrusted with transport and traffic department only.
318. The matter was taken up with the Ministry of Road Transport and Highways.
The Ministry has informed the Committee that there is no intention to delegate these
powers to private agency. Ministry has assured the Committee that necessary changes
would be made to permit such delegation only to a public servant or a public
authority.
319. Insertion of Section 215B grants rule making powers to the Central
Government. And insertion of section 215C grants rule making powers to State
Governments.
320. Section 215-A speaks about the delegation of any power to any person or
group of persons to discharge any of its powers, functions and duties under this
Act by the Central and State Governments. The Committee notes that Section 215
A provides for delegation of powers, functions and duties conferred under the Act
to any person or group of persons. The Committee observes that this is quite
ambiguous and there are chances of misuse of powers. The Government has
already assured the Committee that any delegation of powers, functions and
duties under the Act will be made only to a public servant or a public authority.
The Committee notes that the scope of public authority and public service is
having wider connotations and it is a matter of interpretation. The Committee,
therefore, recommends that powers, duties and functions under the Section 215A
may be delegated only to a Government servant or Government authority.
GENERAL RECOMMENDATIONS
No guns be allowed in personal vehicles
321. The Committee notes that road rage is one of the daily phenomena
happening in metropolitan cities and urban areas. Many a time, in road rage,
licensed guns are used to kill persons. This is happening mainly because licensed
guns are carried by persons in the vehicles without any restriction. The
Committee, therefore, recommends that licenses to fire arms may be restricted in
such a way that it should not be carried while traveling in personal Motor Vehicles
in Metropolitan cities and urban areas where traffic jam is the order of the day.
Inclusion of Traffic and road safety education in school curricula
322. The committee notes that there is a need to educate the students about the
traffic laws, rules and regulations. In many cases the drivers and vehicle owners
are not aware of the extant rules and regulations related to lane driving,
overtaking, speed limit, wearing of helmets, seat belts, sounding of horn, free
passages to ambulances and police vehicles, parking of vehicles, alighting of
passengers, driving under influence of liquor and drugs, overloading, obeying
signals and signage etc. The Committee, therefore, recommends that traffic and
road safety education must be made a compulsory part of the school education
upto the 12th Standard throughout India. The Curriculum may contain general
awareness of traffic rules, existing motor vehicle laws, rules, regulations, messages
of Govt authorities on road safety etc. Causes of accidents, impact of accidents on
families and society, economic and social cost of accidents etc should also be made
part of the curriculum.
323. The road safety education should impart knowledge, skills and
understanding of road safety and road safety behavior. The curriculum should
also enable the students to better understand the risks associated with road use
and to also develop an appreciation for the reasons for many of the laws and
regulations in place to protect the drivers, passengers and commuters. Student
should learn and understand and practice road safety and safe road uses.
Education needs to take centre-stage as technology and the challenges of driving
evolve. The students should be evolved as better driver when they get a driving
license as future citizens. We should evolve them as personally and socially
responsible road users. If we are educating the children we may be educating a
generation of people.
Restriction of Heavy vehicles during early morning
324. The Committee is of the view that the commercial vehicles play a pivotal
role in the field of commerce and trade and also is an integral part of the country‟s
economy. The Committee feels that the drivers who are the backbone of running
the transport system in the country is not a secured lot from any angle whether it
is their salary, job condition, working hours, life insurance etc. They are directed
to drive the vehicles for many days or weeks single handedly. The Committee
notes that driving the heavy vehicles for longer duration during the night causes
fatigue to drivers and due to work pressure and lack of driver‟s concentration
many a times causes accidents. Moreover, heavy vehicles and trucks are causing
major accidents during wee hours. The Committee, therefore, recommends that
the government should strictly implement the duty hours for the drivers of
commercial vehicles and also prohibit the driving of commercial vehicles from
3.00 AM to 5.00 AM in the morning. The Committee also recommends that
movement of heavy commercial vehicles may be regulated in the early morning in
such a way that the commercial vehicles carrying/supplying movement of
vegetables, milk and perishable food products are not affected. The Committee
further recommends that the Government should make it mandatory for the
transporters to depute two drivers on a Heavy commercial vehicle having more
than two axles to drive the vehicle alternately if the vehicle has to cover a distance
of more than 500 kms. The Government may take suitable action to amend the
appropriate Law/Rules to implement the recommendations.
Lane Segregation
325. Another aspect noticed by the Committee is that there is no separate lane
or segregation of vehicles on roads. Every kind of traffic from bicycle to two
wheelers, three wheelers to LMVs, Tempos and Trucks to mega sized vehicles are
using the same lanes of the roads at their whims and fancies and no one is
following any lane driving or following any segregated way of traffic movement.
The Committee, therefore, recommends that the Government should lay down
clear cut policies for segregation of different type of vehicles on specific lanes on
the roads. This is possible in majority of our National Highways as these are
multilane roads. Enforcement of lane driving should be given priority by the
enforcement agencies.
Insurance manual and a concise traffic rule book
326. The vehicle manufacturers always supply a service manual with every new
vehicle sold. The Committee recommends that an insurance manual which give
details about available insurance products to enable the customers to compare
different insurance products and choose the best, may be supplied along with the
service manual. A concise traffic rules manual may also be supplied alongwith the
Service manual so that a driver can learn about the traffic rules and the fines and
punishment associated with its violation.
National Road Safety Board
327. The broad aim of the Motor Vehicle Amendment Bill is to enhance road
safety. Road safety is a complex resultant of road construction technology, motor
vehicle technology and the upgradation of skills of road users both vehicle drivers
and pedestrians. Mere enhancement of penalties will not solve the problem.
There is a need to constitute a high powered road safety board and to ensure the
availability of adequate funds for technologically upgrading and updating the
standards. National road safety fund can be constituted with an additional cess on
first time sales of new motor vehicles which could fund all these activities. The
National Road Safety Board may contain representatives of both Central & State
Governments. It should have adequate authority to guide the Government.
328. The Committee would like the Ministry to furnish a note for its consideration
giving reason for not accepting/agreeing with any of its recommendations/observations.
RECOMMENDATIONS/ OBSERVATIONS-AT A GLANCE
The Committee observes that the insertion of Clause 2B to include new

technologies, inventions and innovations in the Motor Vehicle Sector to develop
and update itself with the modern technologies is a welcome step. Modern
vehicular engineering will help in checking harmful emissions from the vehicles
and save the ecosystem.
(Para 11)
The Ministry has informed that this issue of learners' license online is to
enable the citizens of the country to get license in an easier way and also to avoid
rush at the RTOs.
(Para 14)
The Committee was informed by many States‟ representatives that filling
up of online application and uploading of document need to be followed up by the
appropriate written test prescribed by the individual concerned at the identified
office premises. But the Committee feels that this amendment is a welcome step
which will enable speedy submission of application form and documents.
Learners license is not an address proof, the driving license is issued only after
proper verification. The Committee is afraid that online procedure of obtaining
learning license will be misused and people may get learner's driving license filling
up the wrong information online. The Committee recommends that this section
may be modified further to get rid off such possibilities if any, of misusing this
facility by the miscreants.
(Para 15)
The Committee notes that the Govt. want to do away with minimum
educational qualifications prescribed for issuing a driving license.
(Para 22)
The Committee feels that the person should be literate enough to read,
write and understand the road signage. The Committee is of the view that Central
Govt. should prescribe a mandatory test of competence for a new license holder
under Section 9 of the Motor Vehicle Act. The competency test prescribed should
be uniform throughout India and the State Governments should not be allowed to
further dilute the prescribed competency test criteria.
(Para 23)
The Committee agrees with the provision of this Clause to replace the
words 'invalid carriage' with adapted vehicle". Because people who are suffering
from physical disabilities may like to have their vehicle modified which may suit
to their requirements.
(Para 25)
The Committee notes that India is a fast moving country towards
digitization and information technology revolutions. Internet has removed all sorts
of geographical boundaries and enables the citizens to operate the network from
anywhere in the country. The Government should adopt their own mechanism to
check the identity proof and veracity of other documents physically before issuing
the driving license.
(Para 28)
The Committee agrees with the substitution of words "the licensing
authority having jurisdiction in area" with the words "any licensing authority in
the State". Every person has a residence/identity proof where he stays and he may
get the driving license from any licensing authority in the State at this age of
Internet. The Committee strongly feels that giving a license to a person after
ascertaining his identity from anywhere in the State will not only save his time and
money but also remove the existing bottleneck. The Committee, therefore,
recommends that the existing words “the licensing authority having jurisdiction in
the area” must be substituted with the word “any licensing authority in the State”.
(Para 29)
The Committee observes that if a person has already undergone a
specialized training prescribed by the Central Government then he may be given
exemption from meeting other requirements viz. condition of driving of light
motor vehicle for one year before granting a license to drive transport vehicle.
(Para 37)
The Committee notes the assurance given by the Central Government that
the Clause does not dilute the authority of the State Governments to issue license
and regulate driving schools. The Committee also notes that India is a big country
with varying geographical conditions necessitating rules and regulations required
to suit the local conditions which can be better addressed by the concerned State
Governments. Therefore, Committee recommends that every step should be made
to strengthen the State Governments in regulating driving schools.
(Para 38)
The Committee is happy to note that the Bill seeks to amend section 14(2)
of the Motor Vehicle Act, 1988 which will increase the period from 3 years to 5
years and it has further categorized for the renewal of the driving license in the
age group of 30s, 40s and 50s. The Committee feels it's a welcome step.
(Para 42)
The Committee appreciates the move taken by the Ministry to increase the
time period of renewal of driving license before and after its expiry date. The
Committee feels that this change will help those people who go abroad and return
after a gap of substantial period. The Committee further recommends that
provision for renewal of license for those people who go abroad for longer period
may get some extra relief i.e. time-period of one year before and after the expiry of
the license for getting their license renewed.
(Para 46)
The Committee is of the view that wrong driving of motor vehicles is
dangerous not only for the occupants of the vehicle but it may also affect adversely
the safety of other persons or vehicles on the road and brings others‟ lives under
peril. The Committee feels that strong penal deterrence is necessary to ward off
wrong doers from creating havoc on the road.
(Para 49)
The Committee is not aware of the factual provision so far about the
National Register of Driving Licenses. The Committee feels that before
implementing the proposed changes at national level, every State has to be
electronically equipped with the software of required information. The
Committee, while discussing with various States on the matter, found that many
States are asking for more time i.e., 2-3 years for making their offices
electronically equipped. The Committee appreciates the steps taken by the
Ministry to incorporate the instant section. But, at the same time recommends
that the Ministry should extend help viz. financial, logistics and trained
manpower to various States (when States ask for) to implement this section
effectively.
(Para 55)
The Committee hope that the modalities to be prescribed by the Central
Government to update the National Register would be worked out by the Central
Government in consultation with the States.
(Para 56)
The Committee hopes that the curriculum of training modules, regulation
of schools and establishments to be set up in the States and the training modules
itself should be formulated in consultation with the State Governments. The
Committee recommends that appropriate guidelines may be formulated to
transport the goods of hazardous and dangerous nature and also for specialized
training programme for those drivers who are involved in driving of heavy
oversized vehicles.
(Para 59)
The Committee recommends that there should be a proper training by the
Government for those drivers who are involved in driving heavy vehicles (Mega
Vehicles) and also carrying goods of hazardous and dangerous nature.
(Para 60)
The Committee appreciates the initiative taken by the Ministry and hope
that in a digitized world the geographical limits should not be imposed on citizens.
(Para 62)
The Committee notes that a number of State Governments are unhappy
with the functioning of vehicle dealers as they are under-invoicing, overcharging
customers on logistics/handling charges, taking extra insurance premiums and
indulging in other malpractices. The Committee also notes that the vehicle dealer
is an agent of the manufacturer and shall not be made an instrumentality of the
Government to perform statutory functions and quasi judicial powers of
registering authority. At the same time the Committee notes that RTOs
throughout the country are overburdened and understaffed. Moreover, they are a
den of corruption. The Committee, therefore, appreciates that the delegation of
powers to dealers for registration of vehicles may alleviate a lot many problems of
the vehicle owners. However, the Committee recommends that strict guidelines
may be prescribed for the functioning of the vehicle dealers. The Committee also
recommends that the registration of vehicle by dealers may be made optional to
the States depending on the State‟s specific requirements.
(Para 65)
The Committee notes the comments of the Government. The Committee
also recommends that the State governments should be permitted to issue
temporary registration certificate which can be applicable within the State. The
Committee is of the view that there should be a time limit of just one month for
validity of a temporary registration certificate and it should be uniform
throughout India.
(Para 69)
The Committee notes that Delhi which is having the largest vehicular
population is implementing the same scheme effectively. However, the Committee
was informed that Delhi has implemented the scheme because it has inadequate
officers to manage the vehicle registration whereas in many other States they have
required infrastructure to deal with the vehicle registration. The Committee,
therefore, recommends that this proposal in Clause 18 shall be made optional for
the States to decide on the basis of the infrastructure and manpower available and
the Committee further recommends that it should not be made as mandatory to
be followed by all the States. The Committee also recommends that it may be
implemented in such a way that the regional and local needs are effectively
addressed and the dealers may not be able to manipulate the system or vehicle
configurations to suit their needs.
(Para 75)
The Committee observes that the change in address of vehicle owners is
very common and it is the responsibility of the owner to intimate the authority in
time. But, in the new amendment States are not involved in substitution of the
existing addresses. The Committee recommends that the State Government may
also be made part of the decision making body while making the final form of
proof of authentication. The Committee recommends that the Authority which
originally registered the vehicle should be involved while making the correction
also.
(Para 79)
The Committee feels that under Clause 20, to make alteration or retro
fitment in a vehicle should commensurate not only with the need of the owner but
the attention may also be drawn to the effect of such changes on environment as
well as traffic. A vehicle owner can change the fittings of his vehicle to suit his
commercial need but at the same time changes carried out by the Vehicle owner
should not play havoc on the road. The Committee recommends that the Ministry
may give due care while formulating the rules for change or retrofitment in the
vehicle. The Committee welcomes if the Ministry allows the person to get his
vehicle converted into adapted vehicle as per his requirement on medical ground.
(Para 82)
The Committee observes that the proposed amendment is a step in right
direction. It discourages the owner to hand over their vehicle to an unauthorized
person who is not supposed to drive the vehicle. Such person may cause accident
harming others‟ life and property besides committing an offence which is
punishable under S.199-A.
(Para 84)
The Committee after hearing various States and other stake holders on the
subject came to the conclusion that cut off date for implementing the testing for
vehicles from authorized testing stations w.e.f. 1st October, 2018 is not acceptable
to many States. The States have requested the Committee to pursue their request
to the Ministry to extend the date for a further period. Many of the States have
submitted to the Committee that they may not be ready with the testing stations
by October, 2018. The representative of the State of Uttar Pradesh submitted to
the Committee that entire State has just one automated testing station. The
Committee understands that every State has its own problems to deal with and it
will certainly take time to switch over to automated testing stations. The
Committee recommends that Ministry may take States into confidence to
implement this procedure when they get automated stations installed in sufficient
number in each of the RTOs in their respective States in a fixed time-frame. The
Committee notes that the idea is good but its implementation should be deferred
till such time all the States are ready with adequate numbers of testing stations.
The Central Govt. may, therefore, notify a suitable date (which may even be
different for different States) by Executive Orders by which a State may enforce
these provisions.
(Para 90)
The Committee is surprised to see Clause 7 of the proposed amendment in
Section 56 as it is saying that provision of this Section may be extended to non-
transport vehicles also. Use of non-transport vehicles is quite different from the
use of transport vehicles. The same Rule may not be applied to non-transport
vehicle also. The Committee thinks that it will create problems for public. The
Committee accordingly recommends the deletion of Sub Clause 7.
(Para 91)
The Committee feels that recycling of outdated and obsolete vehicle
material by scientific method is the need of the hour. The Committee
recommends that the Central Government may formulate a comprehensive policy
for recycling of outdated Motor Vehicles keeping in mind the protection of
environment and public safety.
(Para 93)
The Committee hopes that the Government will consider the concern of the
States and protect their identity while formulating new scheme of number for
vehicles.
(Para 96)
The Committee welcomes the step of maintaining a National Register of
Motor Vehicles.
(Para 97)
The Committee notes the proposed amendment.
(Para 99)
The Committee has noted the insertions to be made under this Clause.
(Para 101)
The Committee notes the provision of this Clause. The Committee hopes
that the Commercial vehicles may be exempted from taking permit if it is involved
in promotion and development of last mile connectivity, rural transport, reducing
traffic congestion, improving economy etc. The Committee recommends that it
should be specified in the Act itself that the vehicle involved in carrying out a
special job may be exempted from taking permits. The representatives of the
State of Haryana informed the Committee that the present definition of the
vehicles which can be utilized for last mile connectively is not including a large
variety of vehicles used in Haryana. The Committee, therefore recommends that
the definition may be widened to include the concerns of the State Governments.
(Para 105)
The Committee appreciates the proposed addition of section 66A & 66B of
National Transportation Policy. The Committee feels that it will ease the
transport, both the public and commercial, between the States. The Committee
recommends that whatever policy Centre propose to formulate, all the States may
be taken into confidence and the Government sector i.e., public transport and
public carriage may take priority over private contenders.
(Para 107)
Clause 29 of the Bill is supposed to empower the State Governments to
protect the convenience of passengers, promoting road safety etc. The Committee
feels that this provision will go a long way in helping the public to travel by public
transport.
(Para 111)
The Committee is of the view that waiving the provision of permit for a
stage carriage in a rural area may prove beneficial for the people belonging to
rural areas of India. The Committee hopes that RTA will perform their duty of
waiving the permit condition for stage carriage to be operated in a rural area with
due diligence and care and road safety may be accorded top priority.
(Para 116)
The Committee feels that the instant proviso may help the people in
overcoming the trauma of last mile connectivity if it is implemented efficiently.
The Committee also hopes that as the Ministry has expressed their intention that
this amendment will help in empowerment of marginalized and vulnerable groups
through preference in issuance of permits, the States need not have to be worried
about it.
(Para 119)
The Committee agrees that the insertion of new Section 88 A would
empower the Central Government to make schemes for national, multimodal and
inter-state transport of passengers and goods but the Committee suggests that the
views of State Governments may be solicited before making any type of
improvements in this direction.
(Para 124)
The Committee thinks that the words to be substituted carry wider
meaning and suggests that while applying the provisions it should be interpreted
in letter and spirit.
(Para 128)
Clause 34 of the Bill proposes certain amendments in Section 93 of the
Principal Act which inter alia prescribes the issuance of licenses to aggregators.
The Committee notes that it has been prescribed that while issuing the license to
aggregators, the State Government shall follow such guidelines as may be issued
by the Central Government. The proviso makes it amply clear that the State
Governments should follow the guidelines issued by the Central Government for
issuance of licenses to aggregators. The Committee feels that the control of
transport vehicles are the exclusive domain of the State Governments. Through
this amendment, the balance of power between the Centre and the State has been
tilted and the Central Government will get a preponderance of power to control
the aggregators throughout India. The Committee believes that there is no need to
take away the rights of the State Governments with regard to control of transport
vehicles. The Committee, therefore, recommends that every State Government
should have its own powers and guidelines to control the operations of aggregators
within the State. The Committee further recommends that in Clause 34, Section
93, sub-section (iii) (b) proviso, in place of the "State Government shall follow"
with words "State Government may follow" be substituted. The Committee
recommends that while encouraging aggregators certain effective protective
mechanism should be evolved for small operators and local taxi drivers to ensure
that their livelihood is not jeopardized.
(Para 133)
The Committee notes the amendment.
(Para 137)
The Committee feels that incorporation of Clause 36 will help in promoting
effective competition among the transport providers while keeping in mind the
safety and security of passengers besides other conveniences. The Committee
recommends that the States may accord top priority in ensuring conveniences to
commuters.
(Para 143)
The Committee notes the provision to be incorporated.
(Para 145)
The Committee finds that the Clause 38 is one of the most important
amendments as it speaks about recalling the vehicles which may cause harm to
environment and may be risky for its occupants including driver and other road
users. The Committee thinks that the owner of vehicles may also be compensated
suitably and the manufacturer may reimburse the total cost of vehicle to its owner,
if the vehicle is found to be faulty. The Committee hopes that inclusion of this
section will go a long way in curbing the malpractices by the manufacturers. The
Committee recommends that this Section may be implemented/invoked whenever
it is required without favouring anyone and provision of penalty on
manufacturers may be imposed if running of defective vehicles have caused harm
to the environment.
(Para 147)
The Committee notes the reply and feels that the measures to be taken
under section 114 are the responsibility vested with the States and they have to
implement and ensure the honesty of the agency to be employed for the job. The
work is linked not only with the road safety but also with the revenue generation
for the States.
(Para 152)
The Committee feels that it is the duty of the organization which constructs
it to maintain the same in all respects. NHAI plays the biggest role in constructing
a highway and it is their responsibility to maintain it and guide the road user in a
proper way. The Committee appreciates the move of Ministry to enable NHAI to
do the needful for smooth running of traffic. As far as expertise of NHAI
regarding erection of traffic signs is concerned, it is the responsibility of NHAI to
get suggestions and expertise of those who are having practical knowledge of the
subject.
(Para 156)
The Committee notes that many of the major accidents are caused and
many lives are lost due to the wrong parking of vehicles in Highways. Parking
spaces should be an integral part of all the road construction projects. A clear and
effective policy in this regard is essential to curb the menace. The Committee feels
that parking space is a very important aspect of the road safety and there is
requirement of space for parking the vehicles by the road users to allow smooth
traffic flow. The Committee recommends that NHAI may create parking for the
public's vehicle along the highways at regular intervals. At the same time States
should also construct and maintain parking spaces along State Highways.
(Para 158)
The Committee observes that two wheeler riders carry more risk during
driving compared to four-wheelers and it is an essential requirement that riders
could wear protective headgears during driving. Riders who are above 4 years
certainly need protective headgears for their safety. The Committee thinks that
amendment in Section 129 will strengthen the authority to enforce the safety
measures in the public interest. The Committee also recommends that the
Government should make an appropriate rule on allowing children below four
years in two wheelers. While formulating the rule, safety aspect of the below 4
year old child should be given the uppermost consideration regardless of any
socio-economic situation prevailing in our country.
(Para 161)
The Committee finds that the insertion of new Section i.e. 134 A which
encourages in motivating the general public to come forward and help the
accident victims at the time of need is a welcome step. It has been observed that
many a times people instead of helping the accident victims, wait for police to
arrive on the accident sites, so that the police could help the victims in reaching
the nearby hospitals. Sometimes, in this process a substantial period of time is lost
and victims succumb to injury. The Committee feels that people don't come
forward to help the accident victims as they have doubt in their minds that the
police will harass them. The Committee recommends that it is the responsibility
of the local administration and police to make the people trust them that they will
not be harassed in any manner if they extend their voluntary help to victims. At
the same time, the Committee recommends that the police at the lower level who
comes to the accident sites first, may be sensitized on this issue as they have to deal
with the public directly and elicit people‟s support.
(Para 163)
The Committee notes that the doctors and nurses who are attending the
accident victims are often harassed by the police authorities. The Committee
observes that to give effect to the concept of „Good Samaritan‟ the doctors and
nurses who are treating the accident victims should also get adequate legal
protection. The Committee, therefore recommends that the doctors and nurses
who are treating the accident victims should be included in the definition of
“Good Samaritans”.
(Para 164)
The Committee is alarmed at the large number of road accidents
occurring in the country. After hearing the stakeholders from various fields, the
Committee came to the conclusion that there are many factors which cause
accidents on road. Road designing/engineering, potholes, wrong signage, high
speed and inferior driving skills are some of the reasons to quote. To reduce the
accidents there is a need to take many measures by the State Governments.
Secondly, causes of accidents are not the same at every place but it varies. The
Committee recommends that some strategy may be formulated at the State level to
address the causes of accident at a particular accident prone stretch and also to
find its remedy to correct the problems.
(Para 170)
In India, we lack a robust, scientific and standardized accident
investigation and data collection system. The Committee notes that reasons for
the large number of accidents are never studied or investigated to incorporate
remedial measures. Simply by providing a framework to conduct road safety
audit is not a sufficient mechanism for scientific investigation to understand the
causes of road accidents. The Committee, therefore, recommends that a new
Section 213 A may be inserted to authorise Central Government to prescribe the
form and manner of scientific investigation on the causes of road accidents. It
should also give powers to the State Governments to carry out road safety audits.
(Para 171)
The Committee also notes that the present Bill failed to address the issue of
accidents caused by faulty road designs and non-maintenance of roads and the
accountability of the same. The Committee, therefore, recommends that a penalty
provision (Section 198A) may be inserted in the Bill to hold road contractors and
concessionaires accountable for faulty design, construction and maintenance of
roads.
(Para 172)
As per available data, during the year 2015, approximately 1.5 lakh people
died in the road accidents all over the country and around 5 lakh people got
injured or disabled. The Committee notes that it is an alarming situation and a
huge loss to the nation. The Stakeholders such as the Governments of the Centre
and the State, road users, various governmental agencies etc. have to play their
role in a positive way to minimize the road accidents.
(Para 173)
The Committee recommends that Ministry of Road Transport and
Highways and respective States to provide in their respective field, certain
amenities viz. washrooms, medical stores, restaurants, petrol pumps etc. since
people travel for hours together on the road and such type of amenities are needed
and it should be made available to the public by the authorities.
(Para 174)
The Committee further recommends that every road construction
project/contract should invariably include the provisions such as washrooms,
medical facilities, trauma centres, petrol pumps, parking spaces etc. In this
direction the committee also recommends that availability of ambulance on the
highways on every 30 km may be ensured by the operator of the Highways so that
in case of any accident the injured may get the necessary medical treatment.
(Para 175)
The Committee appreciates the insertion of Clause 136A for enforcement
of safety on roads. It is a known fact that today road traffic is very high and to
control them manually is an uphill task for any agency. It is high time for the
State to go for electronic monitoring to enforce the road Rules and the Committee
recommends that the Ministry should help all the States in acquiring expertise and
other logistic supports to make roads more safe.
(Para 179)
The Committee agrees with the proposed amendment to be brought under
S.137 regarding protective headgear and measures for the safety of children below
the age of four years riding under section 129. The Committee is of the view that
every individual's life is valuable and it must be protected at any cost. It has been
seen that many people buy helmets/headgear of inferior quality which is from the
safety point of view is a costly compromise. The Committee recommends that the
Government should ensure quality and standard of children's headgear by the
manufacturer and this section may be implemented forcefully. The Committee
further recommends that the Centre should allocate resources to the States to
implement various new schemes and programmes envisaged in this Amendment
Bill.
(Para 181)
The Committee observes that the insertion of new sub-section 1(A) under
Section 138 is very important step towards streamlining the uncontrolled non-
motorized vehicles and pedestrians. It is a fact that pedestrians are the most
vulnerable section among the road users and more often the victims do not have
any insurance cover for him/her. The Committee also stresses that the non-
motorized vehicles do not follow road rules and create a lot of nuisance. They are
traffic hazard for others also. The Committee recommends that for smooth
traffic, there is a need of streamlining non-motorized vehicles by introducing
minor penalty/punishment. Here the punishment may be prescribed as corrective
measures like giving training on traffic rules and not as penalty in monetary term.
The Committee recommends that the non-motorized vehicles should not be
allowed on National Highways and main roads of metro cities.
(Para 183)
The Committee notes the omission of Chapter X of the Act.
(Para 186)
The Committee was informed that under section 147(2) of the Bill it is
proposes to cap the liability of general insurance companies to Rs.5 lakh to 10 lakh
in compensating the third party claims in case of road accident. It was submitted
to the Committee that the proposal would expose millions of Third Party Vehicle
insurance policy holders to unlimited risk. If a Tribunal or court awards
compensation above 5 lakhs in case of injury and Rs.10 lakhs in case of death, the
owner of the vehicle has to bear the burden of paying over and above to the third
party. The Committee is of the view that the basic aim of insurance is to defray
individual risk collectively over a vast group of premium contributors especially
when the risk apprehended is likely to be beyond all the means of the individual.
If this main purpose to save the individual is defeated there seems to be no
necessity for insurance policy to mitigate the risk which an individual could not
meet by himself. There is no mens rea in accidents and very purpose of insurance
is to underwrite the cost of unforeseen contingencies. FDI was liberalized in
insurance to strengthen the concept of insurance in a country in which life
essentially is exposed to all sorts of unforeseen contingencies and calamities.
Insurance Companies cannot run away from their basic responsibilities after
collecting hefty amount of no claim insurance premium.
(Para 190)
The Committee, therefore, recommends that the capping of liability of the
insurance companies under third party insurance policy is patently incorrect and
against the interest of the millions of road users. The Committee, therefore,
recommends that proviso to section 147 (2) as included in Clause 49 may be
omitted.
(Para 191)
The Committee was informed by various stakeholders that under Section
147 of the Motor Vehicles Act 1988 a statutory cover has been given to safeguard
the interest of the driver, cleaner and employees engaged in the working of the
Motor Vehicles. However, in the proposed amendment the statutory coverage of
the driver, cleaner and employee engaged in the vehicle are omitted from the
liability of the Insurance Company.
(Para 192)
The matter was taken up with the Ministry of Road Transport and
Highways and they have informed the Committee that the amendment provides
coverage to any person who dies or gets injured by a motor vehicle in a public
place and therefore, shall include driver, cleaner and employee engaged in
running the vehicle.
(Para 193)
In fact, the amendment increases the ambit to cover employees who are
otherwise not covered under the Workmen's Compensation Act.
(Para 194)
The Committee notes the assurance of the Ministry of Road Transport and
Highways and recommends that the Government should ensure that the driver,
cleaner and employees engaged in a vehicle are fully protected under the
insurance coverage. The Committee therefore recommends that the “Driver,
cleaner and employees engaged in the working of the Motor Vehicles” be
specifically mentioned in the clause.
(Para 195)
The Committee is concerned over the apprehension expressed by the States
about getting all State Government's vehicles insured. The States have submitted
they are already in resource crunch and if the State will have to spend a big
amount for making premium payment, it would adversely affect their exchequer.
The Committee further recommends that the State Governments may be
exempted from paying premium for the Government vehicles for two reasons, first
these vehicles are in public service and second, the amount saved from premium
payment may be spent on giving compensation to road accident victims.
(Para 196)
Committee notes the changes.
(Para 198)
The Committee feels that the proposed sub-section (5) is a favourable step
towards the family of the injured who succumbed to injuries and it will help the
family financially.
(Para 199)
The Committee notes the changes.
(Para 200)
The Committee feels that giving the power of civil court to the tribunal will
not only expedite the disposal of cases but also help to the family of the victim of
road accident to overcome the mental trauma and also for settlement of the
financial claims. The Committee appreciates this move.
(Para 201)
The Committee notes the changes.
(Para 203)
The Committee feels that the proposal to increase the amount from ten
thousand to one lakh required for an appeal from the decision of the claims
tribunal to be heard by the High Court is on correct lines.
(Para 207)
The Committee notes that above suggestions are full of merits and need to
be codified in the legislation. The Committee, therefore, recommends that all
claimants of road accidents should first approach the insurance companies for
settlement of the claims and if they are dissatisfied they can approach the MACT
and judicial fora.
(Para 212)
The Committee further recommends that every claim of settlement should
be filed before the MACT or with the insurer within a period of six months so that
it acts as a catalyst for quick settlement and, at the same time, acts as a deterrent
against deliberate delay in filing of claims as well as fraudulent/fictitious claims
being preferred. The Committee also recommends that necessary legislative
backing may be provided so as to ensure detailed accident report by police as
prescribed by the Supreme Court and which is followed in Delhi.
(Para 213)
The Committee finds the increase in penalty as appropriate.
(Para 215)
The Committee appreciates the proposal.
(Para 217)
The Committee finds the increase in penalty from Rs. two hundred to five
hundred as appropriate.
(Para 218)
The Committee finds that the penalty for disobedience of order,
obstruction and refusal of information to be given by a person to public servant
while discharging his duties under this Act to be increased from five hundred to
two thousand rupees under Section 179 (1) & (2) as appropriate.
(Para 220)
Section 180 deals with the owner of a motor vehicle who gives his vehicle to
such a person who is not authorized to drive a vehicle under this Act is liable to
pay fine of one thousand rupees. The Committee finds that the fine of five
thousand rupees would be appropriate as a deterrent because a person who is not
authorized to drive is a safety hazard.
(Para 222)
Clause 61 Under Section 181 the punishment/penalty (imprisonment 3
months/Rs.five hundred rupees) has been prescribed for driving vehicles in
contravention of section 3 or section 4. The Committee thinks that to increase the
penalty to five thousand rupees is appropriate.
(Para 224)
Section 182 deals with the offence of a person who has been disqualified
from having a driving license drives a vehicle in a public place or any place or
applies for a license without disclosing the endorsement to his earlier license. The
Committee notes that the fine to be imposed on such an offender is appropriate.
(Para 226)
Clause 63 speaks about the punishment prescribed for offences related to
construction, manufacture, sale and alteration of motor vehicles and its
components. The Committee finds that proposed substitution is good for checking
unscrupulous elements in the Motor Vehicle industry both the dealer as well as the
manufacturer and of course buyer upto some extent.
(Para 228)
As it is a fact that any alteration or retrofitting which is not permissible
under this Act is detrimental to the environment as well as for pedestrians and
commuters. The Committee thinks that fine of Rupees hundred crore prescribed
in Section 182 A (2) to be awarded to such manufacturer who fails to comply with
the provisions of chapter VII of the Act will act as a deterrent.
(Para 229)
The Committee feels that the proposed enhancement of penalties in
respective categories is appropriate.
(Para 231)
Amendment in Clause 65 has given some explanation under sub section
(iv). It was submitted before the Committee that these explanations may be
misinterpreted and misread by the law enforcement agencies such as police.
Jumping a red light means a vehicle has crossed the stop line when the light was
not green but sometimes duration of amber light is too short and a vehicle cannot
pass from one side to another side and the driver just reaches other side when the
light is already red and he comes under the ambit of red light jumping. Under 184
(iv) (d) explanation is passing or overtaking other vehicles in a manner contrary to
law. One of the stakeholders submitted that many times heavy vehicle is moving
slowly in right lane and a car wants to overtake but overtaking is not allowed from
left and if he does he will commit the offence of wrong side overtaking.
(Para 233)
This Clause seeks to amend Section 184 in order to enhance penalties for
driving dangerously indulging in such activities during driving which may
endanger others‟ lives. The Committee feels that sometimes a person who has not
committed mistake as such but was caught on wrong foot because of others‟ fault,
then he should not be penalized heavily. The Committee recommends that before
applying law, technical things like signals, signages, stop-signs, divider etc. may be
placed correctly. Proper training to police officials is also essential.
(Para 234)
At present the police agencies are implementing the provisions as per their
whims and fancies. There is no standardization of technical aspect which can be
followed by the public.
(Para 235)
The Committee recommends that the Government should come out with
appropriate rules and regulations to decide and define what constitute lane
driving, red light jumping, violation of signals etc.
(Para 236)
The Committee also recommends that signage should be uniform based on
certain technical parameters and standards and the signage should be exclusively
erected only by authorized authorities such as NHAI on National highways and
State PWD Departments for State highways.
(Para 237)
The Committee was informed that draft Road Traffic Regulations are
pending with the Government. The Committee recommends that the proposed
Road Traffic Regulation by virtue of powers conferred by the Section 118 of the
Motor Vehicle Act 1988 should be notified along with the present Amendment Bill.
(Para 238)
The Committee further recommends that parts A &B of the first schedule
of the Act needs revision as the same is not updated and should also comply with
the UN Convention of road signs and signals of 1969 to which India is a signatory.
Road marking, signals and miscellaneous devices should also be included in the
schedule.
(Para 239)
A stakeholder submitted before the Committee that one who has in his
blood more than 30 MG per 100 ML of blood portion of alcohol to be tested by a
“breath alcohol analyzer", comes under the category of person who is drunk.
There are two tests when a person takes a breath, the breath alcohol tester
converts it by a formula into blood alcohol ratio. Now, the Government of India
has not decided the formula if it is 1:2100; 1:2300. There are three conversion
ratio equally used in the entire world based upon the type of a body we have and
the type of food we eat. So, when we talk about drunken driving with breath
alcohol analyzer, we still don't have a formula (breath to blood alcohol ratio to
change), but when we talk about going to the laboratory or a breath alcohol
analyzer, we have to write the conversion between breath and blood. Otherwise,
we will again run into a huge problem. Secondly, there is the issue of apparatus.
Regarding breath alcohol analyzers, there is no stipulation of type approval
standards what should be a breath alcohol analyzer.
(Para 241)
The Committee heard the views of States, private stakeholders and the
Ministry also on the menace of drunken driving and also driving after taking
drugs. The Committee after hearing the views came to the conclusion that to find
out the alcohol in the blood of driver is easier but the modalities to trace the drugs
is not available at present. It is a fact that the drunk driving is a big menace on
the road and many accidents take place due to the fact that the driver of the
vehicle was under the influence of alcohol or drugs while driving.
(Para 242)
The Committee recommends that the Ministry should impose stringent
penalty on such driver who was caught driving after drinking. Such driver
endangers the lives of his own , other occupants of the vehicle and other persons
on the road.
(Para 243)
After hearing the witnesses, the Committee notes that method of testing the
alcohol in the blood of offender is not foolproof and the standard of "breath
analyzer" is also not good enough which could give the authentic report. The
Committee recommends that the Ministry should go for testing machines of
international standard that should prescribe standards for breath analyzer
machines and various parameters to decide drunkenness.
(Para 244)
The Committee notes that drunken driving is a major cause of road

accidents. This malady needs to be dealt with a firm hand. The Committee got
suggestions to the effect that if a drunken driver commit an accident which results
in the death of persons the former should be dealt under the provisions of culpable
homicide not amounting to murder under the relevant Sections of IPC. The
Committee, therefore, recommends that the Government may amend the
necessary legislations to include the deaths due to drunken driving as culpable
homicide not amounting to murder.
(Para 245)
The Committee also recommends that if the drunken driver commits an
accident, his action should not be construed as mere 'negligence' rather it should
be treated as a premeditated commitment of a crime and the drunken driver
should be made punishable under relevant provisions of IPC depending on the
consequences of the accident.
(Para 246)
The Committee notes the increase in the penalty to be increased for driving
when mentally or physically unfit to drive. The Committee finds the increased
penalty is appropriate.
(Para 11)
The Committee notes the change in penalty to be incorporated in Section
187 of the principal Act, which is for the offences committed relating to an
accident.
(Para 250)
The Committee notes and finds it appropriate to increase the penalties for
the offence of racing and trials of speed. The Committee feels that the fast driving
vehicle is a big nuisance on road and it endangers lives of pedestrians as well as
commuters. It is further added here that on most of the roads in a place like
Delhi, speed limit is same what was written some 20-30 years back. The
Committee recommends that speed limit on different roads may be reconsidered
in view of increasing number of vehicles.
(Para 251)
The Committee notes that speed limit in Indian roads are up to 80 Km in
most of the National Highways. In certain cases the roads were designed for a
speed up 120 km, but the maximum speed limit permitted is 100 km. The
Committee notes that most of the accidents happen due to over speeding of
vehicles. The Committee also notes that most of the vehicles manufactured in
India are with a capability of driving more than 180-Km/hr. In some cases the
vehicles are manufactured for more than 240 Km/hr. capability. These vehicles act
like a missile or rocket if involved in an accident. During the deliberations of the
Committee, one stakeholder was asked to respond on the futility of high speed
vehicles when the speed limits are upto a maximum of 100 km/hr. They informed
the Committee that for acceleration purposes high end speed engines are required.
They could not give any other explanation. The Committee feels that these
manufactures are following standards of European and American countries and
the same standards and technologies are being implemented in India.
(Para 252)
The Committee recommends that the Government should formulate the
necessary legislation to limit the acceleration capability of vehicles manufactured
for use in India to speed limit as per the infrastructure availability of the country.
(Para 253)
The Committee also notes that slow moving vehicles are a hazard in
National Highways. The Committee, therefore, recommends that minimum speed
limit should be prescribed for National Highways according to place and amount
of traffic.
(Para 254)
Section 190 of the Principal Act speaks about using a vehicle by a person in
an unsafe condition. Such vehicle may endanger other‟s lives in a public place;
can cause bodily injury or damage to property. Clause (3) speaks about such
carriage which are dangerous or hazardous nature to human life. The Committee
finds that the consequences of a vehicle which is not fit to run on the road and
may cause harms to people, environment or damages to other‟s property fall
under serious category hence increase in penalty is appropriate.
(Para 256)
The Ministry has proposed to omit the Section 191 of the Principal Act
which deals with the sale of vehicle in or alteration of vehicle to condition
contravening the Act. The Committee is unable to understand why this Section
has to be omitted. The Committee recommends that the Ministry should
prescribe provisions to the effect that importer or seller of motor vehicle will not
sell any vehicle which contravenes this Act.
(Para 258)
The Committee notes the proposed amendment.
(Para 260)
The Committee feels that the penalty prescribed for different offences
under this Clause is little bit on higher side. The Committee recommends that in
Section 192 A (1) (i) imprisonment for a term may be kept as 6 months instead of
one year. In 192 A 1 (iii) maximum one year should remain there and in 192 A
1(v) ten thousand rupees is sufficient.
(Para 261)
The Committee finds that the insertion of new section 192 B is a welcome
step towards allowing only authorized/registered vehicle to run on the road and
penalty for violation of the rules proposed in 192 B (1) and (2) are justified but the
Committee feels that in obtaining a certificate based on false representation of
facts by a person or dealer is a serious offence and may be given harsher
punishment than that proposed. In 192 B (3) & (4) the Committee recommends
that such offender may be given imprisonment for a term which may extend to
minimum 6 months and maximum upto one year. This may be added in the Bill.
(Para 263)
The Committee is satisfied with the provision proposed in the Section 193
of the Principal Act. The Committee feels that in metros number of aggregators
are increasing day by day and in the competitive situation aggregator and other
like group/agent may resort to malpractices to get more profit hence to rein them
the penalty in sub-section (2) is appropriate.
(Para 268)
The Committee observes that the penalty Clause given in Section 194 of the
Principal Act is appropriate but at the same time the Committee is of the view that
today Motor transport is the main source of transporting the goods from one place
to another and to earn extra profit transporter carry extra loads on their vehicle.
(Para 272)
The Committee feels that extra load on a vehicle not only damages the road
but it also makes driving the overloaded vehicle risky. Overloaded vehicles are
extremely dangerous for the travelling public. They are the cause of large number
of accidents. The Committee further adds that the proviso to be inserted under
sub-section 1 'C' is a right measure towards curbing this problem. The
Committee recommends that the vehicle in no condition should be allowed to
move ahead unless and until the excess load has been removed from the vehicle
besides imposing fines for each tone of load. Harsh penalty may deter transporter
to indulge in wrong practice of overloading. At the same time, the Committee
suggests that at checking points, man power and machinery may be made
available so that this rule can be implemented successfully.
(Para 273)
The Committee notes that a twenty tonne capacity vehicle often carry 30 to
35 tonnes. The Committee feels that the vehicle manufacturers have to redefine
their technology to ensure that if a vehicle which is overloaded beyond its axle
power is immobilized.
(Para 274)
The Committee notes that the linear dimensions of the vehicles which can
ply on the roads may be prescribed by the Government. Many a times, vehicles
which are carrying bulky oversized and protruding items like bagasse of
sugarcane, sugarcanes, husk, cotton, hay chaff of paddy, wheat and cotton etc. are
hindrances resulting in road accidents and also hindrance to smooth flow of
traffic. The Committee, therefore, recommends that the vehicles which are
oversized in linear dimensions should not be allowed to ply on roads.
(Para 275)
Clause 77 of the proposed bill gives a new height to penalty to be charged
by the authority from vehicle owners/drivers etc.
(Para 281)
The Committee feels that under Section 194A penalty of Rs.1,000 per
excess person is on higher side and Committee recommends that it should be
brought down to Rs.200 per person. Here, it would be pertinent to mention that
India is a developing country and in many parts of the country especially in rural
areas, transportation is a problem. People travel even on roof top of the bus. At
many places there is no government transport and people rely on private
buses/carriages. To impose penalty is not the solution to the problem.
(Para 282)
The Committee notes the proposed omission of the Section 195 from the
Act.
(Para 284)
The Committee was informed that more than half of the vehicles on road
are without a third party insurance. The Committee notes that the registration
tax is one time affair, likewise the third party insurance should also be made a one
time affair. The Committee recommends that every new vehicle purchased should
be made to pay at the time of registration the third party insurance for life time of
the vehicles.
(Para 289)
The Committee notes the proposed amendment to Section 197.
(Para 291)
The Committee notes the proposed amendment to section 198.
(Para 293)
If a juvenile commits a crime after taking the control of the vehicle with or
without the consent of his guardian then the guardian may be held responsible for
Commission of the criminal Act. Then the punishment under section 199A(2)
may be evoked. The Committee agrees with the proposed amendments in Section
199 A (3), (4), (5) and (6).
(Para 294)
The Committee agrees with the amendment proposed in this Clause for
community service as a condition for composition of an offence. But it is not
known to the Committee what type of community service is supposed to be
performed by the offender. The Committee recommends that while giving
community service the State should take care that the service to be performed by
the offender may not be degrading in any way. The Committee notes that
compelling the violators to spend time in emergency surgical OPDs of road
accident victims is a good way of making them understand the consequences.
(Para 300)
The Committee notes the amendment and finds that the penalty under
Section 201 proposed to be imposed is appropriate.
(Para 302)
The Committee observes that the proposed amendment under Section 206,
sub-section (4) speaks about a police officer/authorized person of State may seize
the driving license held by such driver who violates Section 183-driving at
excessive speed and Section 184-driving dangerously. Section 185 Drunken
driving, 189-Racing and trials of speed; 190-suing of vehicle in unsafe condition;
194C-driving overloaded vehicle, 194-D not wearing protective headgear and 194
E- failure to allow free passage to emergency vehicles. The Committee notes that
the fines are revised after a period of almost 30 years. The Committee was
informed that sanction of Parliament is required for increasing the fines. That is
why fine was stagnant in these years which resulted in its non-deterrence on traffic
offenders. The Committee, therefore, recommends that a Clause should be added
in this Bill to give effect to increase of fine @10% every year through executive
orders.
(Para 306)
The Committee agrees with the proposed amendment under Section 210 A
and B.
(Para 310)
The Committee recommends that the digitalization and making the things
electronically available should be done on priority but it should not be forced and
it may be done in a phased manner because some states and some centres within
the State may not be in a position to switch over to electronically equipped office
in a short period due to financial shortage and lack of manpower.
(Para 314)
Clause 88: The Committee notes the proposed amendment to be
incorporate as sub-section (4) of Section 212.
(Para 315)
Section 215-A speaks about the delegation of any power to any person or
group of persons to discharge any of its powers, functions and duties under this
Act by the Central and State Governments. The Committee notes that Section 215
A provides for delegation of powers, functions and duties conferred under the Act
to any person or group of persons. The Committee observes that this is quite
ambiguous and there are chances of misuse of powers. The Government has
already assured the Committee that any delegation of powers, functions and
duties under the Act will be made only to a public servant or a public authority.
The Committee notes that the scope of public authority and public service is
having wider connotations and it is a matter of interpretation. The Committee,
therefore, recommends that powers, duties and functions under the Section 215A
may be delegated only to a Government servant or Government authority.
(Para 320)
GENERAL RECOMMENDATIONS
No guns be allowed in personal vehicles
The Committee notes that road rage is one of the daily phenomena
happening in metropolitan cities and urban areas. Many a time, in road rage,
licensed guns are used to kill persons. This is happening mainly because licensed
guns are carried by persons in the vehicles without any restriction. The
Committee, therefore, recommends that licenses to fire arms may be restricted in
such a way that it should not be carried while traveling in personal Motor Vehicles
in Metropolitan cities and urban areas where traffic jam is the order of the day.
(Para 321)
Inclusion of Traffic and road safety education in school curricula
The committee notes that there is a need to educate the students about the
traffic laws, rules and regulations. In many cases the drivers and vehicle owners
are not aware of the extant rules and regulations related to lane driving,
overtaking, speed limit, wearing of helmets, seat belts, sounding of horn, free
passages to ambulances and police vehicles, parking of vehicles, alighting of
passengers, driving under influence of liquor and drugs, overloading, obeying
signals and signage etc. The Committee, therefore, recommends that traffic and
road safety education must be made a compulsory part of the school education
upto the 12th Standard throughout India. The Curriculum may contain general
awareness of traffic rules, existing motor vehicle laws, rules, regulations, messages
of Govt authorities on road safety etc. Causes of accidents, impact of accidents on
families and society, economic and social cost of accidents etc should also be made
part of the curriculum.
(Para 322)
The road safety education should impart knowledge, skills and
understanding of road safety and road safety behavior. The curriculum should
also enable the students to better understand the risks associated with road use
and to also develop an appreciation for the reasons for many of the laws and
regulations in place to protect the drivers, passengers and commuters. Student
should learn and understand and practice road safety and safe road uses.
Education needs to take centre-stage as technology and the challenges of driving
evolve. The students should be evolved as better driver when they get a driving
license as future citizens. We should evolve them as personally and socially
responsible road users. If we are educating the children we may be educating a
generation of people.
(Para 323)
Restriction of Heavy vehicles during early morning
The Committee is of the view that the commercial vehicles play a pivotal
role in the field of commerce and trade and also is an integral part of the country‟s
economy. The Committee feels that the drivers who are the backbone of running
the transport system in the country is not a secured lot from any angle whether it
is their salary, job condition, working hours, life insurance etc. They are directed
to drive the vehicles for many days or weeks single handedly. The Committee
notes that driving the heavy vehicles for longer duration during the night causes
fatigue to drivers and due to work pressure and lack of driver‟s concentration
many a times causes accidents. Moreover, heavy vehicles and trucks are causing
major accidents during wee hours. The Committee, therefore, recommends that
the government should strictly implement the duty hours for the drivers of
commercial vehicles and also prohibit the driving of commercial vehicles from
3.00 AM to 5.00 AM in the morning. The Committee also recommends that
movement of heavy commercial vehicles may be regulated in the early morning in
such a way that the commercial vehicles carrying/supplying movement of
vegetables, milk and perishable food products are not affected. The Committee
further recommends that the Government should make it mandatory for the
transporters to depute two drivers on a Heavy commercial vehicle having more
than two axles to drive the vehicle alternately if the vehicle has to cover a distance
of more than 500 kms. The Government may take suitable action to amend the
appropriate Law/Rules to implement the recommendations.
(Para 324)
Lane Segregation
Another aspect noticed by the Committee is that there is no separate lane
or segregation of vehicles on roads. Every kind of traffic from bicycle to two
wheelers, three wheelers to LMVs, Tempos and Trucks to mega sized vehicles are
using the same lanes of the roads at their whims and fancies and no one is
following any lane driving or following any segregated way of traffic movement.
The Committee, therefore, recommends that the Government should lay down
clear cut policies for segregation of different type of vehicles on specific lanes on
the roads. This is possible in majority of our National Highways as these are
multilane roads. Enforcement of lane driving should be given priority by the
enforcement agencies.
(Para 325)
Insurance manual and a concise traffic rule book
The vehicle manufacturers always supply a service manual with every new
vehicle sold. The Committee recommends that an insurance manual which give
details about available insurance products to enable the customers to compare
different insurance products and choose the best, may be supplied along with the
service manual. A concise traffic rules manual may also be supplied alongwith the
Service manual so that a driver can learn about the traffic rules and the fines and
punishment associated with its violation.
(Para 326)
National Road Safety Board
The broad aim of the Motor Vehicle Amendment Bill is to enhance road
safety. Road safety is a complex resultant of road construction technology, motor
vehicle technology and the upgradation of skills of road users both vehicle drivers
and pedestrians. Mere enhancement of penalties will not solve the problem.
There is a need to constitute a high powered road safety board and to ensure the
availability of adequate funds for technologically upgrading and updating the
standards. National road safety fund can be constituted with an additional cess on
first time sales of new motor vehicles which could fund all these activities. The
National Road Safety Board may contain representatives of both Central & State
Governments. It should have adequate authority to guide the Government.
(Para 327)
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REPORT NO.

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE

TWO HUNDRED FORTY THIRD REPORT

(Presented to the Rajya Sabha on 8th February, 2017)

Rajya Sabha Secretariat, New Delhi

TWO HUNDRED FORTY THIRD REPORT

(Presented to the Rajya Sabha on 8th February, 2017)

Rajya Sabha Secretariat, New Delhi

1. COMPOSITION OF THE COMMITTEE (i)

1. Shri Mukul Roy - Chairman

2. Shri Ritabrata Banerjee

11. Shri Subrata Bakshi

I, the Chairman of the Department-related Parliamentary Standing Committee

GoM - Group of Ministers

3. Ministry of Road Transport and Highways constituted a Group of Ministers

(i) Wearing of headgear/helmet may be made mandatory for a two-wheeler

'(4A) "community service" means an unpaid work which a person is

'(9A) "driver refresher training course" means the course referred to in

sub-section (2A) of section 19;'

„(43A) "testing agency" means any entity designated as a testing agency

11 The Committee observes that the insertion of Clause 2B to include new

"25A. (1) The Central Government shall maintain a National Register of

"(ja) the curriculum of training modules and the regulation of

"(oa) all or any of the matters referred to in section 25A;”;

the Central Government, alter or retrofit safety equipment, or any other

62B. (1) The Central Government shall maintain a National Register

under sub-section (1) of section 44;";

"(na) the distinguishing mark to be carried on the body of transport

(a) be disqualified from applying for a licence under the scheme

(e) safety of road users;

111. Clause 29 of the Bill is supposed to empower the State Governments to

117. Clause 31 says in section 74 of the principal Act,—

(i) insub-section (2), the following proviso shall be inserted,

(ii) in sub-section (3), in the proviso to clause (b), after sub-clause

(c) improving the movement of freight, and logistics;

(d) better utilisation of transportation assets;

(g) the protection and enhancement of the environment;

(j) enhancement of the integration and connectivity of the

"Agent or canvasser or aggregator to obtain licence.";

"(2A) Persons empowered under sub-section (2) to conduct investigations

"110A. (1) The Central Government may, by order, direct a manufacturer to

(2) The manufacturer or importer of motor vehicles including trailers, semi-

"(aa) providing for the standards of protective headgear and

(a)"authorised insurer" means an insurer for the time being carrying on

(g) "property" includes roads, bridges, culverts, causeways, trees, posts,

(5)Where a cover note issued by the insurer under the provisions of

(a) accepts such offer,—

(3)Any condition in a policy issued for the purposes of this Chapter

Explanation.—For the removal of doubts, it is herby clarified that such deemed

(c) the pollution under control certificate;

(d) the driving licence;

any other source of income as may be prescribed by the Central

The Central Government shall maintain proper accounts and other

(r) the higher amount of compensation in respect of death under

sub-section (3) of section 164B;

230. Clause 64 says in section 183 of the principal Act,—

medium passenger vehicle or a heavy goods vehicle or a

231. The Committee feels that the proposed enhancement of penalties in

"Explanation.— For the purpose of this section,—