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Motor Vehicle Act, 1988

June 08, 2022
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This article is written by Michael Shriney from the Sathyabama Institute of Science and Technology. The article gives an outline of the Motor Vehicle Act, including essential aspects, amendments, and New Motor Vehicle Act penalties. It also includes Supreme Court judgements, information on the Central Motor Vehicle Act of 2019, and Motor Vehicle Rules, 1989.

This article has been published by Sneha Mahawar.

Introduction 

The Indian parliament approved the Motor Vehicle Act in 1988, which governs practically all elements of road transport vehicles. It covers all areas covered by the Act’s provisions, such as traffic laws, vehicle insurance, motor vehicle registration, controlling permits, and penalties. The Act came into effect on July 1, 1989. The government of India, in discussion with state transport ministers, came up with this Motor Vehicle (Amendment) Bill to make amendments to the Motor Vehicle Act, 1988, in order to ensure that roads are safe. On April 10, 2017, the Lok Sabha passed the Motor Vehicles (Amendment) Bill, 2017

This Act requires all drivers to have a valid driving licence, and no vehicle may be driven unless it is registered under the Motor Vehicle Act. The purpose of the Act’s preamble is to consolidate and modernise motor vehicle legislation. This Act provides all drivers and conductors to obtain a licence. The registration certificate is valid for fifteen years from the date of registration and can be renewed for another five years. 

This article gives an overview of the Motor Vehicle Act, 1988, its amendments, Supreme Court case laws, New Amendment Act and Rules, and essential parts of the Act with Motor Vehicle Act penalties. Let us go through each aspect in detail below:

An overview of the Motor Vehicle Act, 1988

The Motor Vehicle Act is a law relating to torts that is founded on the concept that every injury has a remedy. At this point, the idea of compensating and giving damages comes into action. The Motor Vehicle Act of 1988 has been regarded as a welfare law aiming at offering relief to those who have been harmed. There existed the Motor Vehicle Act of 1939, which combined all motor vehicle legislations, but it had to be regularly amended in order to be updated. With advancements in road transport technology and road network growth, as well as changes in passenger transport patterns, it was necessary that the Act was revised to cover all new methods relevant to motor vehicles.

This Motor Vehicle Act is mainly concerned with granting relief to innocent people on the road who are frequent victims of accidents and then find themselves without a claim to the compensation that they should normally receive. All vehicle drivers must have a driving licence under this Act. This also requires the registration of a vehicle under the Act, which has a 15-year validity duration and can be renewed for another 5-year period. The Motor Vehicle Act of 1988 includes not just licencing and registration, but also other aspects of road transport vehicles. 

Motor insurance is required to have at least third-party insurance in order to register and drive a car on Indian roads. However, the New Motor Vehicle Act Of 2019 proposes a Rs.2000/- fine, 3 months in jail, and community service for driving without insurance, as well as Rs.4,000/- punishment for repeated offences. Car and bike insurance policies are offered on the Bajaj markets portal and online platforms such as PhonePe, Acko, and others, and they provide customizable policy formats, coverage limits, and outstanding customer care.

Objectives of the Motor Vehicle Act, 1988

The Indian Motor Vehicle Act of 1988 was established to solve the following issues: 

Offences covered under the Motor Vehicle Act

The following are the offences covered under the original Motor Vehicle Act that  includes:

Important Sections of the Motor Vehicle Act

The following are some of the most important provisions of the Motor Vehicle Act:

Section 3 of the Motor Vehicle Act

Section 3 of the Motor Vehicle Act deals with the necessity of driving licence, stating that-

Section 4 of the Motor Vehicle Act

Section 4 of the Motor Vehicle Act deals with age limitations, stating that-

Section 39 of the Motor Vehicle Act

Section 39 of the Motor Vehicle Act deals with the necessity for registration, which stated that-

Section 66 of the Motor Vehicle Act

Section 66 of the Motor Vehicle Act deals with the necessity for permits, which stated that- 

Section 112 of the Motor Vehicle Act

Section 112 of the Motor Vehicle Act deals with speed limitations, stating that-

Section 113 of the Motor Vehicle Act

Section 113 of the Motor Vehicle Act deals with weight limits and limitations on use, stating that-

Section 129 of the Motor Vehicle Act

Section 129 of the Motor Vehicle Act deals with the necessity of wearing head protection, stating that-

Section 130 of the Motor Vehicle Act

Section 130 of the Motor Vehicle Act deals with the requirement to provide a driver’s licence and a registration certificate, stating that-

Section 140 of the Motor Vehicle Act

Section 140 of the Motor Vehicle Act deals with the obligation to provide compensation in specific circumstances based on the no-fault principle, stating that-

Section 163A of the Motor Vehicle Act

Section 163A of the Motor Vehicle Act deals with special provisions for compensation payments based on a structured formula, stating that-

Section 166 of the Motor Vehicle Act

Section 166 of the Motor Vehicle Act deals with the application for compensation, stating that-

Section 177 of the Motor Vehicle Act

Section 177 of the Motor Vehicle Act deals with the punishment of offences, stating that-

Section 179 of the Motor Vehicle Act

Section 179 of the Motor Vehicle Act deals with disobedience of orders, obstruction and refusal of information, stating that-

Section 181 of the Motor Vehicle Act

Section 181 of the Motor Vehicle Act deals with driving a vehicle under the requirement for a driving licence and the age restriction related to driving a motor vehicle, stating that-

Section 184 of the Motor Vehicle Act

Section 184 of the Motor Vehicle Act deals with driving dangerously, stating that-

Section 185 of the Motor Vehicle Act

Section 185 of the Motor Vehicle Act deals with drunk and driving or a person who is under influence of drugs, stating that-

Motor Vehicle Act : amendments 

The Motor Vehicle Act has undergone various amendments. They are as follows:

Motor Vehicle Amendment Bill, 2019

In July 2019, the Indian parliament enacted the Motor Vehicle Amendment Bill. The amended Motor Vehicle Act, which went into effect in September of that year, included increases in a number of fines for traffic violations, provisions for automobile manufacturers to recall defective parts, and making vehicle owners criminally responsible for infractions committed by minor drivers. The New Act has increased the punishments for a variety of offences in order to stop drivers from acting badly on the road and improve overall road safety across the country.

Some important proposals in the Motor Vehicle (Amendment) Bill

  1. The Bill makes Aadhar necessary for obtaining a driving licence and registering a vehicle.
  2. For deaths such as hit-and-run accidents, the government would compensate the victim’s family with Rs 2 lakh or more. Currently, the sum is only Rs.25,000.
  3. In the case of juvenile traffic offences, the guardians or owners of the vehicle would be held liable unless they could establish the offence was done without their consent or they attempted to avoid it.
  4. The minimum penalties for drunken driving has been raised from Rs.2,000 to Rs.10,000.
  5. The Bill requires automated vehicle fitness testing.
  6. The Bill enables the central government to legislate vehicle recalls if a problem in the vehicle threatens the environment, the driver, or other passengers on the road.
  7. The law establishes a National Road Safety Board, which would be appointed by the central government by notification. The Board will advise the central and state governments on all elements of road safety and traffic management, including motor vehicle standards, vehicle registration and licensing, road safety requirements, and the promotion of innovative vehicle technology.
  8. The Bill proposes a cashless treatment scheme for traffic accident victims during the golden hour.
  9. The 2016 Bill removed the liability limit for third-party insurance, which was set at Rs.10 lakhs for death and Rs.5 lakhs for grievous injury.

Motor Vehicle Amendment, 2020

The Motor Vehicle Act of 1989 has undergone several significant amendments that took effect on October 1, 2020. According to the Amendment, drivers can store a softcopy of their driver’s licence and other papers in their vehicle instead of carrying real paperwork. The Amendment is for the millions of people who use the roadways on a daily basis. These changes were implemented by the ministry of road transport and roads to ensure that traffic regulations are followed, that digitalization is promoted, and that drivers are not harassed by police officers.

Some changes have been made to the traffic rules under the Amendment, 2020

Latest Supreme Court judgements on the Motor Vehicle Act

  1. United India Insurance Co. Ltd. v. Sunil Kumar and Anr., (2017)

The Supreme Court has held that an insurer cannot file a negligence claim. It is one of the most recent Supreme Court cases on the Motor Vehicle Act, with the main issue being the extent of Section 163A of the 1988 Act. This Act contains special provisions for the payment of compensation based on a structured formula. The following are the case’s facts, issues and judgment. The following are the facts, issues, and judgment of this case.

Facts of the case

Issues involved

In a claim procedure under Section 163A of the Motor Vehicle Act, the question arises as to whether the insurer has the authority to present a defense/plea of negligence.

Judgement of the case

The court decided that in a case under Section 163A of the Motor Vehicles Act, 1988, the insurance cannot offer any negligence defence on behalf of the victim, and Section 163A (2) of the Motor Vehicles Act, 1988 makes this plan. Hence, the owner/insurance company will be held liable for compensation.

Important points to note from this case

  1. Mukund Dewangan v. Oriental Insurance Company Limited, (2017)

According to the Supreme Court, a driver with a light motor vehicle licence can operate a transport vehicle without an endorsement. The following are the facts, issues and judgment of this case.

Facts of the case

Issues involved

The question is whether a driver with a light motor vehicle licence who is also driving a transport vehicle of the same class has to get an endorsement to drive a transport vehicle.

Judgement of the case

The Supreme Court of India held that if a driver has a light motor vehicle licence and is driving a transport vehicle of the same type, no further endorsement is necessary.

New Motor Vehicle Act, 2019 penalties

The following are the penalties under New Motor Vehicle Act, 2019:

S.noViolation New penalty from September 2019
1.Driving/ Riding without licence₹5,000 and/or community service.
2.Driving/Riding under the influence of an intoxicating substance₹10,000 and/or 6 months prison| ₹15,000 and /or 2 years jail for the repetitive violation.
3.Overspeeding Light motor vehicle: ₹1,000- ₹2000MPV/HPV: ₹2,000-₹4,000 (+licence seizure).
4.Driving without a seat belt₹1,000 and/or community service.
5.Driving/Riding without insurance₹2,000 and/or 3-months prison, community service | ₹4,000 for a subsequent offence.
6.Violating road regulations₹500- ₹1000
7.Dangerous driving/riding and jumping red light₹1,000- ₹5,000 and/or 6-months to 1 year in prison, licence seizure.
8.Driving/Riding while on the mobile (handheld)₹5,000
9.Speeding, Racing₹5,000 and/or 3-months prison, community service | ₹10,000 for subsequent violation and up to 1 year in prison, community service.
10.Not giving way to emergency vehicles like ambulances, fire engines, etc.₹10,000 and/or community service.
11.Riding without Helmet (rider and pillion rider)₹1000, and or licence disqualification, community service for 3-months.
12.Overloading Two-Wheelers₹2,000 and licence disqualification and/or 3-months of community service.
13.Juvenile Offences₹25,000 with 3-years prison, cancellation of registration for 1-year, juvenile ineligible for licence until 25 years of age.
14.Driving/Riding despite disqualification₹10,000, and/or community service.
15.Overboarding Passengers₹200 for every extra passenger and/or community service.
16.Driving/Riding without ticket₹500
17.Offence committed by enforcing authorities such as offering bribesTwice the penalty (varies according to traffic rules violated).
18.Unauthorized use of vehicles without licence₹1,000- ₹5,000
19.Disobedience of orders of the authorities₹2,000
20.Vehicles without permit₹10,000 and/or up-to 6-months prison, community service.
21.Oversized Vehicles₹5,000 to ₹10,000 and/or community service.
22.Overloading₹20,000 + ₹2,000 for every extra tonne and/or community service.
23.Driving/Riding without licence (for aggregators)₹25,000 to ₹1,00,000
24.Driving/Riding without registration₹5,000 | ₹10,000 for a subsequent offence.
25.Using horn in silent zone₹2,000 | ₹4,000 for a subsequent offence.

Central Motor Vehicle Rules, 1989

The Ministry of Road, Transport, Highways, and Shipping published the Central Motor Vehicle Rules in 1989, which govern vehicle-related activities such as driver licensing, traffic inspections, production and maintenance of motor vehicles, as well as licensing of automotive components and entire vehicles.

Rule 3 of Central Motor Vehicle Rules, 1989 in India,

Central Motor Vehicles (Second Amendment) Rules, 2022

On February 15, 2022, the Ministry of Road Transport and Highways released the Central Motor Vehicles (Second Amendment) Rules, 2022 to amend the Central Motor Vehicles Rules, 1989. This took effect on February 15, 2022. 

Motor Vehicle Act and rules

The Motor Vehicle Act regulates practically every aspect of road transport vehicles. The legislation requires all drivers to have a valid driver’s licence, and no vehicle can be operated unless it is registered under the MV Act. In addition, the driver must also be a major and not under the age of 18 years.

The MV Act penalises for the following offences:

  1. Under Section 3 read with Section 181 of the Motor Vehicle Act, a person who drives his vehicle without a valid licence commits an offence.
  2. A person who allows his vehicle to be driven by someone who does not have a valid driver’s licence is violating the Motor Vehicle Act’s Section 5 read with Section 180.
  3. A breach of Section 130(3) read with Section 177 of the Motor Vehicle Act occurs when a person does not have all of their required documents.
  4. Section 130 read with Section 177 of the Motor Vehicle Act makes it illegal for a person to drive his vehicle without appropriate insurance.
  5. Under Section 3 read with Section 181 of the Motor Vehicle Act, a person who drives his vehicle without a valid licence commits an offence.
  6. A person who allows his vehicle to be driven by someone who does not have a valid driver’s licence is violating the Motor Vehicle Act’s Section 5 read with Section 180.
  7. A breach of Section 130(3) read with Section 177 of the Motor Vehicle Act occurs when a person does not have all of their required paperwork.
  8. Section 130 read with Section 177 of the Motor Vehicle Act makes it illegal for a person to drive his vehicle without appropriate insurance.
  9. It is unlawful for a person to drive a vehicle without a valid permit as per Section 130(3) read with Section 177 of the Motor Vehicle Act.
  10. Driving a vehicle without a valid fitness certificate is a violation of Section 130 read with Section 177 of the Motor Vehicle Act.
  11. A person who does not have a valid R.C. for his vehicle is violating the Motor Vehicle Act’s Section 39 read with Section 192.
  12. When a juvenile operates a vehicle, it is a violation of Section 4 and Section 181 of the Motor Vehicle Act.
  13. Allowing an unauthorised individual to drive is a violation of the Motor Vehicle Act’s Section 5 read with Section 180.
  14. Riding without a helmet is punishable under Section 129 read along with Section 177 of the Motor Vehicle Act.
  15. Driving a vehicle while not wearing a seat belt is a violation of Rule 138(3) of the Central Motor Vehicle Rules, as well as read with Section 177 of the Motor Vehicle Act.
  16. Overspeeding and rash driving are both punishable offences under Section 184 of the Motor Vehicle Act.
  17. Section 112-183 of the Motor Vehicle Act makes it unlawful to drive in a hurried or unsafe manner.
  18. Section 17(i)RRR 177 of the Motor Vehicle Act makes it unlawful to drive in a one-way against the traffic flow.

Conclusion 

The Motor Vehicle Act ensures the safety of all citizens in the country. to defend oneself from harm and avoid traffic jams.  This legislation directs the whole country of India to follow the laws, and if they do not, fines are imposed. This MV Act protects not only vehicle owners and drivers, but also the people who utilise the roads on a regular basis across the country. Citizens are expected to follow the laws that have been established for their own and other people’s benefit. This Act also assures uniformity across the country in order to prevent traffic jams and accidents. If an unavoidable event causes an accident that leads to death, permanent disability, or minor harm, the victim and their family are eligible to seek compensation from the offenders or drivers of the vehicle that caused the accident. Thus, the article concludes that all people must follow the Act’s laws and restrictions in order to make India a better place to live on it.

Frequently asked questions (FAQs)

  1. What are the eligibility conditions?

If the driver is between the ages of 18 and 50, he or she can apply for a driving licence to operate a motorcycle with the written agreement of their parents. If he or she is 18 years old or older, he or she is eligible to apply for a driver’s licence to operate a non-transport vehicle (other than for hire or reward). A passing grade in eighth grade is an extra requirement for obtaining a transport vehicle driver’s licence. If a person merely wishes to drive an auto-rickshaw, he or she will only need one driver’s licence.

  1. Which form needs to be filled in case of transfer of ownership of the vehicle?

Form 29

  1. Under which section it is required to present the Vehicle physically  before registration?

Section 44 of the Motor Vehicle Act

  1. What is the provision of punishment for taking part in a race or trial of the speed of any kind between motor vehicles in any public place without the consent of the State Government under Section 189?

A term of imprisonment of up to six months may be imposed, together with a fine of up to 500 rupees, or both.

  1. Is riding without a helmet illegal under the Motor Vehicles Act 1988?

Yes, riding without a helmet is illegal under the Motor Vehicles Act, 1988.

  1. How much fine does the driver have to pay for cutting lanes while driving?

The driver will pay a fine between Rs.100 to Rs.300, if he/she cut lanes while driving.

References 


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