The Rajya Sabha passed the Motor Vehicles (Amendment) Bill, 2019, on July 31 to tweak provisions under the Motor Vehicles Act, 1988. The Lok Sabha had passed the Bill on July 23. The Bill was introduced in 2017 but couldn’t cross the Rajya Sabha hurdle and had lapsed with the dissolution of the 16th Lok Sabha.

Highlights

Compensation for accident victims: The central government will develop a scheme for cashless treatment of road accident victims during the golden hour. The Bill defines the golden hour as the time period of up to one hour following a traumatic injury, during which the likelihood of preventing death through prompt medical care is the highest.

The government may also devise a scheme for providing interim relief to claimants seeking compensation under third party insurance.  The Bill increases the minimum compensation for hit-and-run cases as follows…

* in case of death, from Rs 25,000 to Rs 2 lakh

* in case of grievous injury, from Rs 12,500 to Rs 50,000

Compulsory insurance: The Bill requires the central government to constitute a Motor Vehicle Accident Fund to provide compulsory insurance cover to all road users. It will be utilised for…

* treatment of persons injured in road accidents as per the golden hour scheme

* compensation to the next of kin of a person who died in a hit-and-run accident

* compensation to a person grievously hurt in a hit-and-run accident

* compensation to any other persons as prescribed by the central government

This fund will be credited through…

* payment of a nature notified by the central government

* a grant or loan made by the central government

* balance of the solatium fund (existing fund under the Act to provide compensation for hit-and-run accidents) or

* any other source as prescribed the central government

Good samaritans: The Bill defines a good samaritan as a person who renders emergency medical or non-medical assistance to a victim at the scene of an accident. The assistance must have been in good faith, voluntary and without the expectation of any reward. Such a person will not be liable for any civil or criminal action for any injury to or death of an accident victim, caused due to their negligence in providing assistance to the victim.

Recall of vehicles: The Bill allows the central government to order for a recall if a defect in the vehicle may cause damage to the environment, driver or other road users. The manufacturer of the recalled vehicle will be required to…

* reimburse the buyers for the full cost of the vehicle or

* replace the defective vehicle with another vehicle with similar or better specifications

National Transportation Policy: The central government may develop a National Transportation Policy in consultation with state governments. The policy will…

* establish a planning framework for road transport

* develop a framework for grant of permits

* specify priorities for the transport system, among other things

Road Safety Board: The Bill provides for a National Road Safety Board to be created by the central government through a notification. The Board will advise the central and state governments on all aspects of road safety and traffic management including…

* standards of motor vehicles

* registration and licensing of vehicles

* standards for road safety

* promotion of new vehicle technology

Offences and penalties: The Bill increases penalties for several offences under the Act. For example, the maximum penalty for driving under the influence of alcohol or drugs has been increased from Rs 2,000 to Rs 10,000. If an automaker fails to comply with motor vehicle standards, the penalty will be a fine of up to Rs 100 crore, or imprisonment of up to one year, or both. If a contractor fails to comply with road design standards, the penalty will be a fine of up to Rs 1 lakh. The central government may increase the fines mentioned under the Act every year by up to 10 per cent.

Taxi aggregators: The Bill defines aggregators as digital intermediaries or marketplaces that can be used by passengers to connect with a driver for transportation purposes (taxi services). These aggregators will be issued licences by states. Further, they must comply with the Information Technology Act, 2000.