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Motor Vehicles Bill: From traffic violation fines to Uber, Ola regulation; 10 new rules

IBEF:  August 02, 2019

The Motor Vehicles (Amendment) Bill, 2019, has been passed from both the houses, the Lok Sabha and Rajya Sabha and will become law once the President gives the permission.

The bill is aimed to bring many changes in transportation system and to bring amendments to upgrade road safety and transport services. As the bill will be implemented, the central government will get the legal power to control the likes of Ola and Uber and impose compliance.

According to the new proposed law, the government also wants to increase the fine for violation of traffic regulations like drunken driving, driving without seat belt, and riding without helmet.

So according to the new Motor Vehicle Bill, if caught drunken driving then will be fined Rs 10,000 then Rs 2000. For not wearing a seat belt, the fine has been increased from Rs100 to Rs 1000.

Two-wheelers, those not wearing helmet the fine has been increased from Rs 100 to Rs 1000 and license may be disqualified for 3 months if found subsequently. Triple riding will also be fined Rs 2000 than Rs 100 now.

This new law will also give stricter punishment in case of road accidents. The minimum compensation for hit and run cases have been hiked from Rs 25,000 to Rs 2 lakh in case of death and in case of grievous injury Rs 50,000.

There will be intelligent traffic system to monitor so people who violates the law can be afraid. The online learner’s licence will have mandatory online identity verification.

The bill also provides guidelines for cab aggregators like Ola and Uber. In current law there are no rules in several states for regulating such cab services which will get licenses from state governments under the new bill. The proposed law generates a new provision of a fine ranging anywhere in between Rs 25,000 to Rs 1 lakh in case of violations by cab aggregators.

The bill includes penalties in the range of Rs 1,000 to 2,000 for over-speeding. Driving without insurance will be punished by a fine of Rs 2,000.

At first the government will develop a system for cashless treatment of road accident victims during the golden hour, which is the time period lasting one hour after a traumatic injury during which there is the highest likelihood of preventing death by providing medical care. Also, citizens who will come forward and rescue accident victims will not be harassed.

This law not only apply to the citizens but to the manufacturers. They can be fined upto Rs 100 crore or one-year imprisonment or even both if they fail to abide by the motor vehicle standards. The central government will also increase 10 per cent fine under the Act every year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.