New Motor Bill to be cleared in Parliament: Govt

Expressing confidence over the passing of Motor Vehicle (Amendment) Bill, 2017 in the Winter Session, Union Minister Nitin Gadkari said that the government is expecting to clear the bill in the Rajya Sabha.

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 Bill limits the maximum liability for third party insurance in case of a motor accident at Rs 10 lakh in case of death and at five lakh rupees in case of grievous injury.

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.

The Bill defines taxi aggregators, guidelines which will be determined by the central government.

The Bill also provides for: (i) amending the existing categories of driver licensing, (ii) recall of vehicles in case of defects, (iii) protection of good samaritans from any civil or criminal action, and (iv) increase of penalties for several offences under the 1988 Act.

However, the states have expressed concerns about their powers being curtailed in the Bill and are demanding the power to frame and enforce rules regarding issuing of license.