Salient features of Motor Vehicle Amendment Act, 2019

FCS Deepak Pratap Singh , Last updated: 05 January 2023  
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The Motor Vehicle Amendment Act, 2019 ("Act") came into force on 1st September 2019. The Amendment Act replaced the Motor Vehicles Act, 1988.

A notification issued by the Union Ministry of Road Transport and Highways ("Notification") stated that September 1, 2019, is to be appointed as the date on which Section 1 of the Amendment Act will come into force.

The salient features of the Act are

1. Cash Less Treatment during Golder Hour

The Act has made provisions for the cashless treatment of victims of road accidents during the 'golden hour', which has been defined as the time period up to one hour from the occurrence of the accident. This 'golden hour' is hence the time period in which the chances of survival of the victim are maximum if subjected to proper treatment and immediate care.

Salient features of Motor Vehicle Amendment Act, 2019

2. Compensation for road accident victims

The amount of compensations has been revised and increased the minimum compensation for hit and run cases. According to the Act, the compensation in case of death increased m Rs. 25,000/- to 2 lakhs, and in case of grievous injury from Rs. 12,500/- to Rs. 50,000/-.

3. Road and environment health

To increase the road safety for passengers and drivers the act had new amendment related to manufacturing defect and it directs the manufacturers to take back the vehicles, in case the vehicles are not fit for use on roads and cause environmental damage and harm the health of others. The manufacturers have been given the choice to either reimburse or replace the defective vehicle with one of similar make.

4. National Road Safety Board

A key feature of this Act is that it provides for the setting up of a National Road Safety Board under the central government in order to advise the governments of all the states and also the central government on matters relating to traffic management and road safety.

5. Compulsory insurance

The Act instructs the Central Government to establish a 'Motor Vehicles Accident Fund' for providing compulsory insurance to all the drivers of the country.

6. Fitness of Vehicles

The Amendment has laid down mandates for the automated testing of vehicles for doing a fitness check for improving road safety by removing unfit vehicles from the traffic. There are specific provisions in the Act for those who intentionally violate environment and safety regulations. The Act promotes the certification of automobiles after being successfully tested. Also, it aims at setting testing standards and bringing the agencies issuing automotive approvals under the Motor Vehicles Act.

7. Taxi Aggregators

'Taxi aggregators' are defined by the Act as the intermediaries using a digital platform for connecting drivers to passengers, who, according to the provisions, are to be provided with licenses from the governments of the respective states and are instructed to follow the rules and regulations of the Information And Technology Act, 2000.

8. Online Driving Licenses

This Act provides for online issuance of learner's license and mandates online identity verification. This is aimed at improving efficiency and limits the issuance of fake licenses to a large extent. This Act also provides that commercial licenses would be valid up to a period of five years instead of three years. Driver training schools have been provided for, in order to ensure the production of better drivers on roads.

9. National Register

This Amendment Act encourages harmonization and integration of issuance of driving license with vehicle registration. The Act lays down that this would be done by the creation of a National Register for Driving License and National Register for Vehicles with the online portals of 'Sarathi' and 'Vahan' in order to ensure the creation of a uniform system of licenses and vehicle registration throughout the country.

 

10. Protection of Good Samaritan

It has been often observed that generous persons who help the victims of road accidents end up being the victims of harassment. The Act defines 'Samaritan' as a person who stands up for helping out a road accident victim, immediately after such an accident takes place. It ensures that they are not harmed in any manner and protects them from any kind of suits or proceedings, even if they cause the death of the victim negligently.

11. National Transportation Policy

he idea of the formation of a National Transportation Policy has been promoted by the Amendment of 2019. Such a policy has to be made by the Central government in collaboration with all the state governments and would structure a framework for road transport.

 

CONCLUSION

Steps taken by government, specially transport ministry in previous years are appreciable. The main feature of this amendment act, 2019 is the protection of "Good Samaritan" generally people who have helped victims are harassed by the police authorities. They usually called Police Stations for their statements and other formalities. They should be protected, so that more and more people come forward to help victims in " Golden Hours".

DISCLAIMER: The article presented here is only for sharing brief knowledge of Motor Vehicles Act, 2019. Do consult with professionals for more information.

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Published by

FCS Deepak Pratap Singh
(Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.))
Category Corporate Law   Report

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