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insurance blog from Royal Sundaram

The Ministry of Road Transport and Highways presented the Motor Vehicles Act,1988 for amendment in Lok Sabha on the 15th of July 2019. With this, the Minister for Road Transport and Highway sought an amendment for the purpose of road safety and to levy heavy penalties in cases of traffic norm violations. The Bill which was passed by Lok Sabha, Rajya Sabha, and later even received the President’s approval is set to bring revolutionary changes in the thirty-year-old laws to make roads in India safer, facilitate last-mile connectivity, and improve rural transport, while thwarting corruption and using technological advancement to transform as well as renovate the country’s transportation system.


The amended Motor Vehicles Act for Road Safety – 2019


  • With the Motor Vehicles (Amendment) Act, 2019, the Ministry is looking to facilitate all motor vehicle-related grant of permits for licensing and certifications, norms for motor vehicles, and hefty penalties for abuse or violation of these road safety provisions.
  • Victims of road accidents who claim compensation under the third-party insurance provision are granted some relief under the new rules which has increased the minimum compensatory amount for hit and run cases. The revision now provides for Rs. 2 lakhs in case of death and Rs. 50 thousand in cases of grievous bodily injury.
  • The Act further necessitates the Central Government to establish a Motor Vehicle Accident Fund, which will be used to treat road accident victims per the provisions of “golden hour” and, also fund compensations for victims of a road accident, including hit-and-run, as laid down by Act’s terms.
  • As a relief to volunteers helping the accident victims, the Act eliminates any criminal or civil action or liability in case of victim’s death.
  • The Central Government can now pass orders for recall of motor vehicles if they are found defective or harmful to the environment, the driver or found to compromise the safety of others on the roads.
  • Through this Act, a board for Road Safety and Policy for National Transportation to develop frameworks for road transport and permit allowances is also in the works to further advise and aid the Central Government. The safety board will handle all matters of road safety and aspects of traffic management like motor vehicle and road safety standards, new vehicle technologies, permits, vehicle licensing and registration, etc.
  • Under this amended Act, severe penalties will be levied on road and vehicle safety offenders. Fines and penalties have been revised to crack down harder on individuals caught driving under the influence, non-compliant vehicle manufacturers, and road contractors in breach of road design standards.
  • Digital intermediaries, marketplaces or taxi aggregators as defined by the government will be issued licenses by state and, also have to conform to the terms as laid by the IT (Information Technology) Act of 2000. This includes taxi services that are hired online or through an app.


Traffic Rules & Violation Fines in India – Then Vs. Now

No matter what, violation of any law in any form will draw punishment. To decry road hazards and warrant safety, under the act, fines and payments for multiple offences have been increased with some even attracting jail time. For instances of traffic rule violations like reckless driving, blocking emergency vehicles, speeding, driving under the influence (drugs or alcohol), and other transgressions such as riding without a helmet or driving without a licence, stiffer penalties have been proposed.


Violations Old Fines Revised Fines
Driving Under the Influence Rs. 2,000 Rs. 10,000
Violation of Road regulations Rs. 100 Rs. 500
Driving with no license Rs. 500 Rs. 5,000
Dangerous driving Rs. 1,000 Rs. 5,000
Speeding Rs. 500 Rs. 5,000
Driving without Seatbelt Rs. 100 Rs. 1,000
Blocking way of emergency vehicles *new* Rs. 10,000
Driving without valid motor insurance Rs. 1000 Rs. 2000


Know Your RTO Address & Services

The Regional Transport Office or RTO Services function under the Ministry of Road Transport and Highways. They are responsible for maintaining databases pertaining to vehicles and drivers within each state in the country. The RTO issues all kinds of driving permit & licenses and makes arrangements for the collection of road tax.


There are a number of RTO services and consultants that can help with your individual queries and concerns relating to obtaining a No Objection Certificate or NOC, payment or refund of taxes, issuance of a duplicate RC, removal of hypothecation, matters of ownership transfer, vehicle registration or re-registration, etc. For all the above-mentioned services, you can visit the nearest RTO and get additional information for any service.

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