Motor Vehicles Amendment Bill, 2017- an Analysis

Context:

Motor Vehicles Amendment Bill, 2017 is scheduled for upcoming monsoon session of parliament

Need for an amendment in the Motor Vehicles Act, 1988

1. ​Increase in Severity of Accidents:

● According to the Report ​‘​Road​ A

​ ccidents in India-2016’, road accidents in India have
decreased by around 4.1% in 2016 from 2015. However, ​fatalities resulting from these
accidents have risen by about 3.2%

● According to a World Bank report, road accidents cost India about 3% of its gross domestic
product every year.

2. ​Changing Requirements:

● When the Motor Vehicles Act, 1988 was framed, India’s motorisation scenario was at a
nascent stage. It was felt that policies were needed to give this sector a boost.
● Therefore, most of the provisions of the 1988 Bill revolve around movement of good and
passengers
● The Act is inadequate with increasing motorization in India
● Further, the penalties for violation of rules is grossly inadequate for ensuring non-violation
of traffic rules

3. ​ Issue of Duplicate Licenses

● Due to inefficiency in the licensing system, lakh of licenses are issued without prescribed
checks and balances

● Further, due to absence of a central registry, often multiple licences are held by one person
for different States.

4. ​The need for accountability:

● According to Save Life Foundation, Engineering/designing fault caused 1289 accidents in

2016, killing 589.
 ● However there is no provision in the Motor Vehicles Act 1988 to hold road contractors liable
for defects in construction and maintenance

5. International Commitments:

● As a signatory to the Brasilia Declaration on Road Safety, India has committed to reducing,
by 2020, the number of road crash fatalities and serious injuries by 50%- ​Sustainable
Development Goal 3.6- Reduce Road crash deaths by 50% by 2020

Motor Vehicles Amendment Bill, 2017

● The bill seeks to create an exhaustive and comprehensive legislative framework for road
safety in India.
● It aims to amend the Motor Vehicles Act, 1988, which is the primary central legislation that
regulates the licensing and registration of motor vehicles and drivers.

Key Provisions:

1. ​Cashless Treatment for road accident victims-

● The central government to develop a scheme to provide cashless medical treatment to

people injured in road accidents within the first hour (‘Golden Hour’) of its occurrence.

2. ​Recalling of Vehicles-

● Empowers the Central Government to recall vehicles which do not meet standards
● Also provides for establishment of testing agencies for issuing certificates of approval.

3. ​Aggregator Licences:

● An ‘aggregator’ has been defined as a digital intermediary or market place. The aggregators’
services may be used by a passenger to contact a driver for the need of transportation
(taxi-services)
● According to the Bill, State Government will grant licenses to the aggregators based on the
guidelines outlined by the Central Government.
4. ​National Road Safety Board:
● The Bill introduces the National Road Safety Board. The function of the Board will be to
advise the State and Central Governments on issues related to road safety and traffic
management
5. ​National Transport Policy:
● The bill recommends the Central government to develop a National Transportation Policy in
consultation with States. The policy should:
1. Establish a planning framework for road transport
2. Develop a framework for grant of permits and schemes
3. Identify and specify priorities for the road transport system.

6. ​Safety of Pedestrians and Non-motorised transports:

● The Bill empowers the state governments to make rules to regulate the activities of
pedestrians and non-motorised road users.
 ● Regulation of activities in a public place of pedestrians and non-motorised road users could
include the creation of special zones such as cycle tracks and footpaths, NMT lanes etc.

7. ​Safety of Children during Commute:

● The Bill makes it mandatory for every child to be secured by a safety belt or a child-restraint
system
● It also proposes that every child above the age of 4 being carried on a two-wheeler must
wear a helmet

8. ​Driver’s Licensing System:

● The Bill calls for a digitized licensing system. Further, ​it makes Aadhaar mandatory for
getting a driving licence and vehicle registration
● Minimum educational qualifications for transport drivers has been removed
● The time limit for renewal of driving licence is increased from one month to one year before
and after the expiry date.

9. ​Electronic Monitoring:

● The Bill mandates the state government to ensure electronic monitoring and enforcement of
road safety on National Highways, State Highways and Urban Roads.

10. ​Offences and Juveniles:

● In traffic violations by juveniles, the guardians or owner of the vehicle would be held
responsible unless they prove the offence was committed without their knowledge or they
tried to prevent it.
● The registration of the motor vehicle in question will be cancelled.
● The juvenile will be tried under the Juvenile Justice Act.

11. ​National Registry for Licenses and Registration and National Register of Motor Vehicles

● The Bill proposes to create National Register for Vehicle registration and National Register
for Driving Licenses.
● This will facilitate uniformity in the registration and licensing process across the country

12. ​Punishment for faulty Road Design, Engineering and Maintenance:

● The Bill incorporates a provision which holds road contractors, consultants and civic agencies
accountable for faulty road design, construction and maintenance. A failure to do so will
make them liable to fine up to 1 lakh

13. ​Penalties and Compensation

● For deaths in hit-and-run cases, the government will provide a compensation of Rs 2 lakh or
more to the victim's family. Currently, the amount is just Rs 25,000.
● The minimum fine for drunk driving has been increased from Rs 2,000 to Rs 10,000.
● The fine for rash driving has been increased from Rs 1,000 to Rs 5,000.
14.​ Insurance

● A Motor Vehicle Accident Fund will provide compulsory insurance cover to all road users in
India for certain types of accidents.
● According to the Bill, insurance company will be liable for a payment of up to INR 10 lakh in
case of death and up to INR 5 lakh in case of grievous injury.
● Further, it does not attach any cap on liability for the third party insurance.
● It empowers Central Government to make a scheme for providing interim relief to claimants
seeking compensation under third party insurance

Issues and Challenges:

1. ​Cap on Liability for Third Party Insurance:

● The Bill caps the maximum liability for third party insurance. However, it does not cap the
compensation amount that courts can award.
● In cases where courts award compensation higher than the maximum liability amount, it is
not clear who will pay the remaining amount.
2. ​Motor Vehicle Accident Fund:
● Under the Motor Vehicles Act of 1988, compensation for hit and run victims comes from a
Solatium Fund.
● However, the bill creates a new Motor Vehicle Accident Fund. Since, a fund to provide
compensation already exists, the purpose of the new fund is not clear
3. ​License to aggregators:
● According to the Bill, the State governments will issue licenses to taxi aggregators as per
central government guidelines.

● At present, state governments determine guidelines for plying of taxis. There could be
differences in state taxi guidelines and central guidelines on aggregators.

4. ​Several Issues remain unaddressed:

● The Bill does not address a number of issues on road safety. They are:

1. Creation of road safety agencies,

2. Improvement of road design and engineering

5. Stricter Penalties:

● Many critics are of the opinion that increasing fines is not sufficient to change road
behaviour and ensure road safety.

Best Practice-Sweden:

Key measures include:

● Low urban speed-limits

● Pedestrian zones- It has built 12,600 safer crossings along with strict policing
● Barriers to separate cars from bikes
 ● Integrated guidelines for traffic safety and crime prevention under the Traffic for an
Attractive City (TRAST)

Way Forward:

1. Penalizing is an inadequate measure for ensuring safer roads. The World health Organization
(WHO) recognizes that education and awareness of the people is an important aspect for road
safety.

2. There needs to be design on road infrastructure- road design and engineering. S. Sunder
committee, 2007 on Road Safety highlighted the need for scientific study of road infrastructure
which includes effective road engineering solutions at the design stage, rectification of accident hot
spots

3. NITI Aayog’s recommendations on using Artificial Intelligence in Transport: It recommends

investing in autonomous vehicle technology. This would help in controlling road fatalities and road
congestion. It also advocates use of AI in traffic rules enforcement.

For example: Recently, Dubai has AI-powered traffic control for effective enforcements of traffic
regulations. It helps the police to efficiently monitor traffic violations.

4. There is need for effective enforcement of traffic rules and regulations by the police