BQ Explains: What Changes Once The New Motor Vehicles Bill Becomes A Law 

Fivefold jump in penalty for anyone caught driving drunk, new fines for blowing horn in prohibited areas and for not letting emergency vehicles like ambulances pass, and holding parents or guardians responsible for juveniles at the wheel.

These are among the many changes in the Motor Vehicle Amendments Bill 2019 aimed at making roads safe. The legislation has been passed by Lok Sabha and Rajya Sabha once. But after minor changes, the two houses will have to approve it again. Once cleared and signed by the President, it will replace a three-decade-old Motor Vehicle Act.

The Motor Vehicle (Amendment) Bill 2019 provides for stricter punishment for various traffic-related offences, and higher penalties with a hope that it will act as deterrent against traffic violations in the country.

BloombergQuint compares with new and existing provisions:

Stricter Penalties

• Penalty for drunk driving will be Rs 10,000, while a motorist caught honking in a restricted area will have to pay Rs 1,000 in fine.
• Motorists not giving way to ambulances and fire brigades will lead to a fine of Rs 10,000 and/or face an imprisonment of up to six months.
• All penalties will increase by 10 percent every year.
• Online verification by Aadhaar is now mandatory to get a driver's licence.

Damages, Treatment

Cashless Treatment: The government is looking to develop a system for cashless treatment of road accident victims during the golden hour—first hour after a traumatic injury during which there's the highest chance of prevent death by providing medical attention. Citizens who come forward to help victims won't be harassed by the police.

Hit-And-Run Damages: The minimum compensation for hit-and-run cases will be hiked from Rs 25,000 to Rs 2 lakh in case of death, and from Rs 12,500 to Rs 50,000 in case of grievous injury.

The bill includes the driver's attendant in third-party insurance cover, and removes the cap on the liability of insurers. The rule states that an insurance company will make an offer to the claimant for settlement before the claims tribunal within 30 days. If the claimant rejects the offer, a date of hearing will be fixed to adjudicate claims on merit.

The government, however, proposed that in case of the death, insurer or owner of the motor vehicle is liable to pay Rs 5 lakh as compensation, up from the existing Rs 50,000. This will have an impact on the motor vehicle insurance premiums.

Getting Driver's Licence Gets Tougher

Testing: Driver's licence test will be computerised and reduce human interface to curb corruption and menace of fake licences. At present, tests are manual, and it's easier to get one without proper training.

Application for renewal can now be made a year prior to the date a licence lapses.

Unique Number: No driver's licence will be valid unless it has been issued a unique driving licence number under the National Register of Driving Licences.

The proposed changes will give the central government the power to make rules for the licence-issuing authority. The national register will comprise data across the country, make transfer of vehicles across states easier and curb theft.

Registration: A vehicle owner may choose to register vehicle anywhere in a state—existing rules allow registration only the regional transport office of the area where the owner lives. Auto dealers will be responsible for registration.

Penalty For Not Registering Vehicle: For failing to file an application for registration, a vehicle owner will have to pay five times the annual road tax or one-third of the lifetime tax—whichever is higher. For a similar offence, a dealer will be punishable with a fine of 15 times times the annual road tax or the lifetime tax of the motor vehicle, whichever is higher.

Change In Address: Change in address can be updated online. Owner of a vehicle is liable for a fine of Rs 500 for failing to update new address within 30 days.

Manufacturing Defects: In case of any defect in the vehicle that may cause damage to the environment, or the driver, or other road users, the government can order a recall of vehicles and the manufacturer will be required to reimburse the buyers the full cost of the vehicle, or replace the defective vehicle with a one with similar or better specifications.

If a manufacturer fails to comply with motor vehicle standards, the company and its executives can be fined up to Rs 100 crore, or face imprisonment of up to one year, or both.

E-Scooters: States will make rules for non-mechanically propelled vehicles such as e-scooters and carts.

Motor Vehicle Accident Fund: The bill requires the central government to constitute a Motor Vehicle Accident Fund to provide compulsory insurance cover to all road users. The corpus will be used to treat accident vehicles during the golden hours or compensates the family of victims who die in hit-and-run cases.

If an insurer pays the claim, the amount paid from the fund will be deducted.