Union Cabinet approves Motor Vehicle (Amendment) Bill, 2016

The Union Cabinet has approved the Motor Vehicle (Amendment) Bill, 2016 to improve road safety scenario in the country.

The bill seeks to amend Motor Vehicles Act (MVA), 1988 and proposes to hefty penalties against violations of road safety rules as a deterrent measure.

Key Features of the Bill

  • Changes in Parent law: It amends existing 68 sections of MVA, 1988 which has total 223 sections. It proposes addition of 28 new sections.
  • It deletes Chapters 10 and replaces Chapter 11 provisions with new set of provisions to simplify third party insurance claims and settlement process.
  • Compensation: Increases compensation for Hit & Run cases to Rs. 2 lakh from Rs.25000. Adds provision for payment of compensation in road accidents fatalities upto Rs. 10 lakh.
  • Role of states: It permits states to grant exemptions in Stage carriage and contract carriage permits for promoting rural transport, last mile connectivity, public transport and for road safety and passenger convenience.
  • Permits state Government to specify a multiplier to be applied to each fine under this Act and such modified fine. The multiplier must be not less than one and not greater than ten,
  • Allows State Government to regulate the activities in a public place of pedestrians and such means of transport.
  • e-Governance: It focuses on improving delivery of services to the stakeholders using e-Governance. It enables (i) online learning licenses, (ii) increases period of driving licenses validity, (iii) Do away with the requirements of educational qualifications for transport licenses etc.
  • Vahan & Sarathi platforms: Proposes to create National Register for Vehicle registration and National Register for Driving Licence through “Sarathi” and “Vahan” platforms.
  • This will facilitate uniformity of the process across the country and bring harmony of the registration and licensing process.
  • Offences committed Juveniles: The owner or guardian will be deemed guilty in cases of offences by the Juveniles. Juvenile will be tried under JJ Act and the registration of Motor Vehicle will be cancelled.
  • Other Provisions: (ii) Registration at the end of the dealer will be enabled and restrictions will be imposed on temporary registration. (ii) Proposes increased penalties against traffic violations as deterrent for road safety (iii) Proposes stricter provisions in respect of offences like drunken driving, driving without licence, juvenile driving, over-speeding, overloading etc. (iv) Proposes stricter provisions for helmets along with provisions for electronic detection of violations. (v) Good Samaritan guidelines have been incorporated to help the road accident victims. (vi) Proposes an automated fitness testing for the transport vehicles with effect from 1st October 2018. Its mandate is to reduce corruption in the Transport Department while improving the road worthiness of the vehicle.  (vii) Proposes penalties for deliberate violation of safety and environmental regulations as well as spare part suppliers and body builders.


  • The proposed amendments to MVA, 1988 mainly focuses on issues relating to improving road safety, citizens’ facilitation while dealing with the Transport Department.
  • It also focuses on strengthening rural transport, public transport, last mile connectivity automation and computerization (e-Governace) and enabling online services.


  • In India every year 5 lakh road accidents are reported in which 1.5 lakh people lose their lives.
  • To address the issue of road safety, the Union Government had proposed a draft Road Transport & Safety Bill earlier. However, most of the States had expressed reservations.
  • To address the reservations of states the Union Ministry of Road Transport & Highways constituted a Group of Transport Ministers (GoM) of the States.
  • The GoM was headed by Yoonus Khan, Transport Minister of Rajasthan held three meetings in which total of 18 Transport Ministers from different states had participated.
  • The GoM had recommended that Union Government should immediately bring amendments to the present Motor Vehicle Act, 1988 to address the issue of road safety and improving transport scenario.



Categories: Bills & ActsNational




  • Sameer

    Very detailed information


    Nyc amendments

  • Gyan Prakash


    4. The Bill does not involve any other expenditure of recurring or non-recurring nature
    from the Consolidated Fund of India. This mean the Union of India will not create any of its own machinery for discharging constitutional duty under article 246.

    215A. (1) Notwithstanding anything else contained in this Act the Central Government shall have the power to delegate any power or functions that have been conferred upon it by the Act to any person or groups of persons and authorise such person or group of persons to discharge any of its powers, functions and duties under this Act.

    This Motor Vehicle ( Amendment) Bill 2016 will not reduce accidents but will add corruption by Police, private persons authorised in the Act and Enforcement Staff. The Central Govt. is not creating any of its own machinery for Safety from unsafe vehicles manufactured in violation of Law therefore in Financial Memorandum no expenditure by Central Govt. is proposed.
    Mechanically Propelled Vehicles are concurrent subject between Central and State Govt. under Constitution of India but with this bill Central Govt. is first taking over power from State Govts. and then
    under section ” 215A. (1) Notwithstanding anything else contained in this Act the Central Government shall have the power to delegate any power or functions that have been conferred upon it by the Act to any person or groups of persons and authorise such person or group of persons to discharge any of its powers, functions and duties under this Act.”
    is delegating to private persons. Thus for deaths due to negligence by Govt. in enforcement for violation of Act no Government official will be accountable.
    At present all motorcycles are designed unsafe in violation of Central Motor Vehicle Rule 123 and private manufacturers and private testing agency ARAI Pune says that Govt. of India has not made standards , procedure for conformance of Production certifying conformance of motor vehicle to Act and CMV Rules leading to death of 50,000 motorcyclists annually.
    The corruption in checking of Pollution Under Control Testing by private persons can be seen in every place and the same thing will occur for enforcement of Safety from vehicles.
    This Bill has increased penalty on drivers by 10 times on assumption that accidents are caused by fault of drivers which is wrong. Accidents are caused by transfer of energy in such ways and amounts and at such rapid rates, that inanimate and structures are damaged.. These accidents are caused by High Speed vehicle ( Sporty Vehicles) and heavy DUMPERs manufactured and sold in violation of Law. Therefore section 109 of Motor Vehicle Act ( Since year 1939) reads ” Every Vehicle will be so constructed and so maintained so as to be at all times under the effective control of the person driving the vehicle. To control manufacturing of unsafe motor vehicles in violation of Law the Central Govt. has not created any of its own machinery under section 110 B but has delegated powers to private body of manufacturers like ARAI Pune. There is no penalty proposed on manufacturers for violation of Safety Rules under section 109 and 110 and vehicle certifying testing agencies. The only punishment for such testing agencies is cancellation of their accreditation for testing. There is requirement of National Driving Standards and Vehicle Standards Agency of United Kingdom or National Highway Traffic Safety Administration of USA for certifying Prototype Vehicles and recalling vehicles. Though section 110 A is proposed for recall of vehicles but there is no financial memorandum that is no financial arrangement for creating such technical machinery. In Ministry of Road Transport and Highways in Transport Wing there is not even a single technically qualified person for dealing with safety of motor vehicles. All technical Automotive Industry Standards made for safeguarding interest of Industry are only adopted and notified by Govt.
    There is need for public debate by subject experts on this Bill and subject matter to reduce accidents.

  • mukund narayan phadnavis

    Suggestions on Chapter X and XI of MV Act
    Chapter X and XI of Motor Vehicles Act is a social security legislation having source in Article 38 and 39 of Constitution.
    Fundamental rules in law making:
    1- “salus populi est suprema lex”, means the safety of people is the supreme in law making. And
    2- 2- Latin maxim, ‘Memores acti prudentes future’ – mindful of what has been done and aware of what will be.
    We must not move from one form of confusion to another through proposed Bill.
    1- M K Kunnimohammad vs P A Ahmedkutty (1987) 4 S.C.C. 284, amendment to MV Act Prompting removal of limits of liability.
    2- Gujarat State Road Transport Corporation Ahmedabad vs. Ramanbhai Prabhatbhai and anr. [1987]3 SCR 404, His Lordship S.Venkataramiah, J. says, [“Today, thanks to the modern civilization, thousands of motor vehicles are put on the road and the largest number of injuries and deaths are taking place on the roads on account of the motor vehicles accidents. In view of the fast and constantly increasing volume of traffic, the motor vehicles upon the roads may be regarded to some extent as coming within the principle of liability defined in Rylands v. Fletcher….”]
    3- (Jaiprakash Vs National Insurance [S.L.P. 11801 to 11804 of 2008], gave specific suggestions to Legislature, Executives and insurers. One most important issue was suggestion about collection of premium, of motor vehicles on road through levy on Fuel.
    [extract from famous Keshavananda Bharati two para 1741. ‘…”Man’s only right, in the last analysis is the right to be a man, to live as a human person………….’]

    [The real issue of large uninsured vehicles is not getting any attention despite Supreme Court Judgement in Jaiprakash Vs National Insurance co Ltd.

    Pendency is due to insurance officers avoiding decisions by hiding behind defenses under S- 149(2). Remove defenses. All claims will be payable.

    Why not adapt controlled absolute liability principle as observed by Justice Venkatchalliah in Gujarat Transport Judgement.

    Without manufacturing confusions existing law in chapter XI of MV Act can be amended to settle issues. Concept can be:

    a- Fixed compensation to people not paying Income Tax at Rs 25 Lacs in case of death and major (serious injury defined by law).
    b- Rs 35 Lacs fixed compensation to those who pay Income Tax.
    c- All other Injuries should get Rs 3 lacs (fixed) as upper limit of compensation. Simple injury getting nominal amount.
    d- Create one fund by levying fixed amount on Fuel as suggested by Supreme Court in Jaiprakash Judgement called accident victim fund.
    e- Delete S- 146 of MV Act.
    f- Creating multiple agencies can be a breeding ground for nuisance to accident victims.
    g- Pay and recover provision can be biggest mistake because recovery would be possible in very few cases and create perpetual litigation and small transporters landing in to civil imprisonment.
    h- We can’t forget that animal/Human have 1st right to earth. Air and Rail cannot be compared to road accidents as masses have access to this mode.
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