Motor Vehicle Bill Amendments Approved By Cabinet — Brace Yourself To Pay Some Hefty Fines

The penalty for drunken driving is being increased by five times to Rs 10,000, and if such driving results in the death of another person, the driver can be charged with a non-bailable offence with a jail term up to 10 years.

The new Motor Vehicles Act also raises fines for other offences, below are the details:

1. Registration of the vehicle will be cancelled in case the car owner has handed over the vehicle to juveniles, and, in the event of an accident caused by the minor, his or her family will be fined up to Rs 25,000 with or without imprisonment up to three years.

2. The amendment also provides for protective headgear for children aged four and above while riding a two-wheeler along with a check on the quality and standard of the helmets.

3. Riding without a helmet will attract a fine of Rs 1,000 with the cancellation of licence for three months; this goes for jumping a red light or not securing the seat belt while driving as well.

4. Talking on a mobile phone while driving will attract a fine which has been increased from Rs 1,000 to Rs 5,000.

5. Under the 'No Fault' Liability, Rs 10 lakh will be given as compensation to victims of road accidents in case of death and Rs 5 lakh in case the victim is grievously hurt. Previously, the compensations were Rs 50,000 and Rs 25,000 respectively while removing the Central government's authority to prescribe the compensation.

6. As for hit-and-run accidents cases, compensation will be Rs 2 lakh in the event of death and Rs 50,000 in the case of an injury.

7. The Transport Ministry has also agreed to the Parliamentary Standing Committee's proposal to eliminate the cap on third party liability of insurance firms. The original plan was to limit the insurers' liability to a maximum compensation payment of Rs 10 lakh in case of death and Rs 5 lakh for injury.

Also, the committee had recommended vehicle registration by authorised automobile dealers and that this provision should be made optional to be decided by the states; however, the ministry declined to accept the recommendation.

The government will also set up a National Register for vehicles and driving licences, which will issue a unique registration number to remove duplication.

The Act also enables the Centre to recall vehicles whose components or engine do not meet the required standards. Vehicle manufacturers can be penalised up to Rs 500 crore in case of non-complaince of rules in parts or engine.