2019 New Motor Vehicle Amendment Bill – New Rules & Regulations

The 2019 new Motor Vehicle Amendment Bill, made after consultation with transport ministers of 18 states, aims at making roads much safer than before. Already passed by Rajya Sabha, the upper house of the Parliament; this bill brings numerous reforms to existing traffic laws with emphasis on increment of traffic violation fines. Additionally, it also stresses on vehicle safety as well as car insurance for third party in any event of an accident.

With this new bill waiting to be passed by Lok Sabha attempting to improve road safety, it is important for commuters to be aware of these upcoming reforms and changes. The most crucial and impactful of these new features are mentioned underneath.

  1. Vehicle safety and recall.
  2. Increase in traffic violation penalties.
  3. Third party insurance.
  4. Credentials: Driving license and vehicle registration.

The basic facets which have been taken under consideration for reform more or less add up the essential aspects of road safety. Consequently, it is important for travellers to know these upcoming reforms in details so as to abide by these norms and prevent incursion of any fine due to traffic violation.

  • Vehicle safety and recall

Vehicle safety is to include new automated fitness tests which will decide if they are fit and safe for travel. Subsequently, testing agencies are to come under strict purview of the government.

Further, the bill will also allow the Central Government to recall any vehicle deemed harmful for its users or the environment and fellow passengers. Though not quite related directly car insurance schemes, the bill also ensures reimbursement or replacement by the manufacturer in case of such a recall.

  • Increase in penalties

This is one of the most influential of the upcoming reforms. The upper house of the Parliament has decided to increase traffic violation penalties, most of these increments being a 1000% raise in the amount. While old laws had a fine of Rs. 100 and Rs. 500 for driving without helmet and talking over the phone while driving, respectively; new laws intend to increase the same to Rs. 1000 and Rs. 5000.

Some fines like that of driving under intoxication are to grow by 500%, with the present sum of Rs. 2000 being proposed to be increased to Rs. 10,000.

  • Third party car insurance

Of car insurance add on covers, third party coverage is vital. With the following measure, the Parliament intends to safeguard the victim of any accident or mishap. Resultantly, it has been proposed to raise the third-party coverage amount manifold.

Essentially, during any accident, the victim who was hit by a car or run over by a bike is known as the third party. While most car insurance policies cover the vehicles, third party car insurance policies are necessary to safeguard the accidental victim. In case of demise, the cover amount has been increased 8 folds, while injury compensation has been raised by 4 times.

Third party car insurance is a must according to government norms. Additionally, it crucially safeguards the driver who availed the insurance scheme, as well as the individual who incurred loss or damage due to known faults in his or her. It enables a certain safety for others, rather than for one’s own.

  • Driving license and vehicle registration

Driving licenses, in terms of being secure will have online and other verification modes. Fake licenses will be easily identified. Additionally, applying for license will become easier with online application modes being set up.

As for vehicle registrations, the entire process is to become easier as well as swift. The new bill estimates the time for completion of registration to come down to 1 month.

The new Motor Vehicle Amendment Bill of 2019, once passed by the Parliament will assure all commuters of much safer roads. With new increments on the penalties and easy availability of car insurance online, the future of road travels is to change for better.