India has moved forward for safety legislation with the Lok Sabha passing the Motor Vehicles (Amendment) Bill, 2016.
The changes are significant as they will, for the first time, acknowledge the fundamental reordering of mobility with the introduction of laws recognizing app-based taxi operators.
A bill to unleash radical reforms in the transport sector by ensuring 100 per cent e-governance, checking bogus driving licenses and vehicle thefts, slapping heavy penalty on traffic violators and protecting the good samaritan was approved by the Lok Sabha on April 10.
In a first, the new Motor Vehicles (Amendment) Bill will allow the government to modify or amend any norm for the better application of rules.
The bill focuses on improved citizen centric services, reducing the number of accidents and steps to reduce work load on regional transport offices.
The bill also proposes hefty penalties for various traffic offences, three-year jail term for parents of minors caught driving and causing fatal accidents, and a ten-fold increase in compensation for the families of accident victims, among other things.
The Bill not only clearly defines guidelines for the taxi aggregators but also lists for–amending the existing categories of driver licensing, recall of vehicles in case of defects, protection of good samaritans from any civil or criminal action, and increase of penalties for several offences under the 1988 Act.
Another focus is e-Governance.
Enabling online learning licenses, increasing validity period for driving licenses, and doing away with the educational eligibility criteria for licenses are some of the features of the Bill.
On March 31, in 2016, the union cabinet approved the changes in the Motor Vehicles Act.
The bill introduced in Parliament last year had proposed 89 clauses for amendment out of which only 57 were accepted by the Parliament Standing Committee on Transport.
The Bill amends the Motor Vehicles Act, 1988 to address issues such as third party insurance, regulation of taxi aggregators and road safety.
Under the Act, the liability of the third party insurer for motor vehicle accidents is unlimited.
The amendment caps the maximum liability for third party insurance in case of a motor accident at INR 10 lakh in case of death and at five lakh rupees in case of grievous injury.
However, the Bill does not cap the compensation amount that courts can award. The Bill provides for a Motor Vehicle Accident Fund, which would provide compulsory insurance cover to all road users in India for certain types of accidents.
It defines taxi aggregators, guidelines for which will be determined by the Union Government.
Bill also provides for protection of good samaritans from any civil or criminal action, and increase of penalties for several offences under the 1988 Act.
