Amendments in Motor Vehicles Act notified on 9th August

The Ministry of Law and Justice on August 09, 2019, has published the Motor Vehicles (Amendment) Act, 2019, to further amend the Motor Vehicles Act, 1988.

The Act aims to improve road safety, facilitate citizens in their dealings with transport departments, and strengthen rural transport, public transport and last-mile connectivity through automation, computerization and online services.

 Key Amendments made under the Act are as follows: 

  • The new law allows the Centre to ask manufacturers to recall vehicles in case of defects that cause harm to the environment. Besides, the Centre, in consultation with the states, can frame a national transportation policy to transform the rural and public road transportation system and improve last-mile connectivity.
  • The Act provides for issuance of online Learners License after mandatory online identity verification.
  • To improve the registration process for new vehicles, registration at the end of the dealer is being enabled and restrictions have been imposed on temporary registration
  • The central government shall constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India. It will be utilised for:  treatment of persons injured in road accidents as per the golden hour scheme,   compensation to a person grievously hurt in a hit and run accident, and  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.
  • A new provision that mandates automated fitness testing for vehicles. It also proposes penalty for deliberate violation of safety and environmental regulations and provides for mandatory recall of defective vehicles.
  • The Amendment incorporates Good Samaritan guidelines in order to help road accident victims. Good Samaritan has been defined as a person who provides emergency medical or non-medical assistance to a road accident victim and provides rules to prevent harassment of such a person.
  • The Amendment recognises app based cab aggregators like Ola and Uber and define them as a digital intermediary or a market place. India’s state governments will grant licenses to the aggregators based on the guidelines framed by the central government. However, the said guidelines haven’t been made yet. The aggregators will also be required to comply with the Information Technology Act, 2000.
  • A new section has been inserted- Section 88A under the said Act which gives power to the central government to modify any permit issued under this act or make schemes for national, multimodal and inter-State transportation of goods or passengers.
  • Fines for violation of the various provision of the Act, have been enhanced.

Click here to read the Notification

RECENT UPDATES