| INDIA LEGAL |July 22, 2019 29percent of its GDP annually due to road
accidents, the Bill needs ur gent enact-
ment to address this epidemic.”
I
n 2007, the ministry of road trans-
port and highways appointed a
committee on road safety to exam-
ine the magnitude of road traffic injuries
and fatalities. It recommended setting
up road safety authorities at state and
national levels. In April 2016, the centre
constituted a group of state transport
ministers to recommend reforms for the
road transport sector. The group recom-
mended that the earlier Motor Vehicles
Act, 1988, be amended to address
urgent issues of road safety.
Some of the highlights of the Bill are:
Liability of the third party insurer for
motor vehicle accidents is unlimited.
The maximum liability for third party
insurance in case of a motor accident is
10 lakh in case of death and5 lakh in
case of grievous injury. This implies that
the insurance company is liable to pay
only up to these specified amounts.
How ev er, the Bill does not cap the com-
pensation amount decided by courts.
The question is who will pay the remai -
ning amount if courts award compensa-
tion amounts higher than the maximum
liability prescribed under the Bill? This
is not clear in the Bill.
Under the 1988 Act, a driving licence
was valid for 20 years or till the person
attains the age of 50 years, whichever is
earlier. After the age of 50, the licence is
valid for only five years. The Bill amends
this to create several categories. If a per-
son applying for the licence is below 30,
it will be valid till he turns 40. Between
30 and 50 years, the licence will be valid
for 10 years. Between 50 and 55 years, it
will be valid till the holder turns 60. If
the driver is above 55, the licence will be
valid only for five years.
The Bill allows the central govern-
ment to recall vehicles if they have a de -
fect that may cause damage to the envi-
ronment or other road users. The manu-
facturer will reimburse buyers with the
cost of the vehicle or replace it with
another vehicle with similar or better
specifications.
Samaritans will be protected for ren-
dering emergency assistance to an acci-
dent victim and will not be held respon-
sible for his death.
Grant of licences, registration, receipts
and change of address will be computer -
ised. There will also be electronic mon -
itoring and enforcement of road safety.
The maximum penalty for driving
under the influence of alcohol or
drugs has been increased from `2,000
to `10,000.
If a vehicle manufacturer fails to com-
ply with maintenance standards of mo -tor vehicles, it could attract a fine up to
`100 crore or one-year imprisonment
or both.
Compensation and insurance provi-
sions for accidents have been modified.
The central government will consti-
tute a Motor Vehicle Accident Fund
which would provide compulsory insur-
ance cover to all road users for being
grievously hurt or for payment of com-
pensation in case of death or grievous
injury where no person can be held
liable for the accident. Currently, the
1988 Act provides for a Solatium Fund
to provide compensation to hit and run
victims. The new Fund also provides for
compensation for hit and run accidents,
in addition to other accident cases.
The central government will design a
scheme for providing interim relief to
claimants seeking compensation under
third party insurance for motor vehicle
accidents. It can also recover funds from
the owner of the motor vehicle involved
in the accident.
State governments will have to ensure
electronic monitoring and enforcement
of road safety on national highways, state
highways and urban roads. States will,Even though Union minister Nitin Gadkari
proposes to introduce the lapsed Motor
Vehicles (Amendment) Bill in the ongoing
session of Parliament, he must look at
curbing some vexed issues of road safety.WHO IS TO BLAME?
NGOs dealing with road safety and families
affected by accidents participate in a walk in
New Delhi to demand safe roads for allUNI