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ICICI Lombard Expert Blog

Motor Vehicle Bill Amendment to Curb Traffic Violations

August 04 2016
Drive safe to avoid fines

The Motor Vehicle (Amendment) Bill, 2016 was approved by a unanimous decision taken by the Union Cabinet in early August 2016.

According to the amendment, any violation of road safety rules will be heavily fined along with strict action, if necessary.An important provision in the amendment is the increase in compensation from ₹ 25,000 to 2 lakh for hit-and-run cases, and ₹ 10 lakh for accidental death.

The fine for driving without license increased ten times – to ₹ 5,000– while for drunken driving, one of the major causes of accidents, it has been hiked to ₹ 10, 000. Driving without motor insurance will invite a fine of₹ 2,000, which is double the current amount. Unauthorised use of vehicles without license will incur ₹ 5,000 as fine.

The other fines applicable to all, such as violating road rules, driving post disqualification, hazardous driving and disobedience of orders given by authorities will be penalised ₹ 500 (minimum), ₹10,000, ₹ 5,000, and ₹ 2,000 respectively.

For two wheeler riders, driving without helmet and overloading invites fines of ₹1,000 and 2,000, along with suspension of license for 3 months.

Speeding will be fined at ₹ 1000 and ₹ 2000 for Light Motor Vehicles and Medium Passenger Vehicles. For seat belt violation,motor drivers will need to pay a penalty of ₹ 1,000, a tenfold hike.

Other revisions include juvenile offences, for which the guardian or owner shall be deemed guilty; penalties for deliberate safety and environmental violation; and mandatory automated fitness testing of transport vehicles.

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