Motor Vehicles Amendment Bill 2017

AS PASSED BY LOK SABHA
ON 10-4-2017
Bill No. 214-C of 2016
THE MOTOR VEHICLES (AMENDMENT) BILL, 2017

ARRANGEMENT OF CLAUSES

CLAUSES
1. Short title and commencement.
2. Amendment of section 2.
3. Insertion of new section 2B.
5. Amendment of section 9
12. Insertion of new section 25A.
24. Insertion of new sections 62A and 62B.
27. Amendment of Section 65.
(ii)
CLAUSES
37. Amendment to section 96.
49. Omission of Chapter X.
50. Substitution of new Chapter for Chapter XI.
58. Insertion of section 177A.
64. Substitution of new sections for section 182A.
72. Omission of section 191.
74. Amendment of section 192A.
75. Insertion of new section 192B.
78. Insertion of new sections 194A, 194B, 194C, 194D, 194E and 194F.
(iii)
CLAUSES
79. Omission of section 195.
91. Insertion of new sections 215A, 215B, and 215C.
92. Omission of Second Schedule.
1
AS PASSED BY LOK SABHA

ON 10-4-2017
Bill No. 214-C of 2016
THE MOTOR VEHICLES (AMENDMENT) BILL, 2017

A
BILL
further to amend the Motor Vehicles Act, 1988.
BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:
1. (1) This Act may be called the Motor Vehicles (Amendment) Act, 2017. Short title and
commencement.
(2) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint and different dates may be appointed for different provisions
5 of this Act and any reference in any such provision to the commencement of this Act shal be
construed as a reference to the coming into force of that provision.
59 of 1988. 2. In the Motor Vehicles Act, 1988 (hereinafter referred to as the principal Act), in Amendment
section 2, of section 2.
(i) for clause (1), the following clauses shall be substituted, namely:
10 '(1) "adapted vehicle" means a motor vehicle either specially designed
and constructed, or to which alterations have been made under sub-section (2)
of section 52, for the use of a person suffering from any physical defect or
disability, and used solely by or for such person;
2
(1A) "aggregator" means a digital intermediary or market place for a

passenger to connect with a driver for the purpose of transportation;
(1B) "area", in relation to any provision of this Act, means such area as the
State Government may, having regard to the requirements of that provision,
specify by notification in the Official Gazette;; 5
(ii) after clause (4), the following clause shall be inserted, namely:
'(4A) "community service" means an unpaid work which a person is required
to perform as a punishment for an offence committed under this Act;';
(iii) after clause (9), the following clause shall be inserted, namely:
'(9A) "driver refresher training course" means the course referred to in 10
sub-section (2A) of section 19;'
(iv) after clause (12), the following clause shall be inserted, namely:
'(12A) "golden hour" means the time period lasting one hour following a
traumatic injury during which there is highest likelihood of preventing death by
providing prompt medical care;'; 15
(v) clause (18) shall be omitted;

(vi) in clause (24), for the words "invalid carriage", the words "adapted vehicle"
shall be substituted;
(vii) in clause (26), for the words "invalid carriage", the words "adapted vehicle"
shall be substituted; 20
(viii) after clause (38), the following clause shall be inserted, namely:
'(38A) "scheme" means a scheme framed under this Act;';
(ix) after clause (42), the following clause shall be inserted, namely:
(43A) "testing agency" means any entity designated as a testing agency
under section 110B;'; 25
(x) in clause (49), after the word 'rests', the words 'or moves' shall be inserted.
Insertion of 3. After section 2A of the principal Act, the following section shall be inserted, namely:
new section
2B.
Promotion of "2B. Notwithstanding anything contained in this Act and subject to such
innovation. conditions as may be prescribed by the Central Government, in order to promote
innovation and research and development in the fields of vehicular engineering, 30
mechanically propelled vehicles and transportation in general, the Central Government
may exempt certain types of mechanically propelled vehicles from the application of
the provisions of this Act." .
Amendment 4. In section 8 of the principal Act,
of section 8.
(i) in sub-section (1), for the words "the licensing authority having jurisdiction 35
in the area", the words "any of the licensing authority in the State" shall be substituted;
(ii) in sub-section (2), for the words "and with such fee", the words "with such
fee and submit in such manner, including by electronic means" shall be substituted;
(iii) in sub-section (3),
(a) after the word "application", the words "to drive a transport vehicle 40
made" shall be inserted;
(b) the proviso shall be omitted;
3
(iv) in sub-section (4), in the proviso, for the words "invalid carriage", the words
"adapted vehicle" shall be substituted;
(v) in sub-section (5), for the words "passes to the satisfaction of the licensing
authority such test" the words "satisfies such conditions" shall be substituted;
5 (vi) in sub-section (6), after the proviso, the following proviso shall be inserted,
namely:
"Provided further that a licencing authority may issue a learner's licence in
electronic form and such manner as may be prescribed by the Central
Government.":
10 Provided also that the licensing authority may, before issuing the license
verify the identity of the applicant in such manner as may be prescribed by the
Central Government.
5. In section 9 of the principal Act, Amendment
of section 9.
(i) in sub-section (1), for the words "the licensing authority having jurisdiction
15 in the area", the words "any of the licensing authority in the State" shall be substituted;
(ii) in sub-section (3), for the second proviso, the following proviso shall be
substituted, namely:
"Provided further that a driving licence for driving an adapted vehicle may
be issued to the applicant, if the licensing authority is satisfied that he is fit to
20 drive such motor vehicle.";
(iii) in sub-section (4), the words "such minimum educational qualification as
may be prescribed by the Central Government and" shall be omitted;
(iv) in sub-section (5), in the proviso, after the words "last such test", the words
and figures "and such applicant shall be required to complete a remedial driver training
25 course from any school or establishment under section 12" shall be inserted.
6. In section 10 of the principal Act, in sub-section (2), in clause (c), for the words Amendment
"invalid carriage", the words "adapted vehicle" shall be substituted. of section 10.

of section 11.
(i) in sub-section (1), for the words "the licensing authority having jurisdiction
30 in the area", the words "any licensing authority in the State" shall be substituted;
(ii) in sub-section (2), the following proviso shall be inserted, namely:
"Provided that the licensing authority may, before issuing the license
verify the identity of the applicant in such manner as may be prescribed by the
Central Government.".
35 8. In section 12 of the principal Act, after sub-section (4), the following sub-sections Amendment
shall be inserted, namely: of section 12.
"(5) Notwithstanding anything contained in any other provision, where any

school or establishment has been accredited by a body notified by the Central
Government under any other law for the time being in force, any person who has
40 successfully completed a training module at such school or establishment covering a
particular type of motor vehicle shall be eligible to obtain a driving licence for such
type of motor vehicle.
(6) The curriculum of the training module referred to sub-section (5) shall be
such as may be prescribed by the Central Government and the Central Government
45 may make rules for the regulation of such schools or establishments.".
9. In section 14 of the principal Act, in sub-section (2), Amendment
of section 14.
(i) in clause (a),
(A) for the words "three years", the words "five years" shall be substituted;
4
(B) in the proviso, for the portion beginning with the words "one year"
and ending with the word "and" the words "three years and renewal thereof
shall be subject to such conditions as the Central Government may prescribe;
and", shall be substituted;
(ii) for clause (b), the following clause shall be substituted, namely: 5
"(b) in the case of any other licence, subject to such conditions as the
Central Government may prescribe, if the person obtaining the licence, either
originally or on renewal thereof,
(i) has not attained the age of thirty years on the date of issue or,
renewal thereof, be effective until the date on which such person attains 10
the age of forty years; or
(ii) has attained the age of thirty years but has not attained the age
of fifty years on the date of issue or, renewal thereof, be effective for a
period of ten years from the date of such issue or renewal; or
(iii) has attained the age of fifty years but has not attained the age 15
of fifty-five years on the date of issue or, renewal thereof, be effective until
the date on which such person attains the age of sixty years; or
(iv) has attained the age of fifty-five years on the date of issue or as
the case may be, renewal thereof, be effective for a period of five years
from the date of such issue or renewal."; 20
(iii) the proviso shall be omitted.
Amendment of 10. In section 15 of the principal Act,
section 15.
(i) in sub-section (1), in the first proviso, for the words "more than thirty
days", the words "either one year prior to date of its expiry or within one year" shall
be substituted; 25
(ii) in sub-section (3), for the words "thirty days", the words "one year" shall be
substituted; and
(a) for the words "thirty days", the words "one year" shall be substituted;
and 30
(b) in the second proviso for the words "five years after the driving licence
has ceased to be effective, the licensing authority may", the words "one year
after the driving licence has ceased to be effective, the licence authority shall"
shall be substituted.
Amendment of 11. In section 19 of the principal Act, 35
section 19.
(i) after sub-section (1), the following sub-section shall be inserted, namely:
"(1A) Where a licence has been forwarded to the licensing authority under
sub-section (4) of section 206, the licensing authority, if satisfied, after giving
the holder of the driving licence an opportunity of being heard, either discharge
the holder of a driving licence or, it may for detailed reasons recorded in writing, 40
make an order disqualifying such person from holding or obtaining any licence
to drive all or any class or description of vehicles specified in the licence
(a) for a first offence, for a period of three months;
(b) for a second or subsequent offence, with revocation of the driving 45
licence of such person:
Provided that where a driving licence is revoked under this section, the
name of the holder of such driving licence may be placed in the public domain in
such manner as may be prescribed by the Central Government.";
(ii) in sub-section (2), 50
5
(a) after the word, brackets and figure "sub-section (1)", the words, brackets,
figure and letter "or sub-section (1A)" shall be inserted;
(b) for the proviso, the following proviso shall be substituted, namely:
"Provided that the driving licence shall be returned to the holder at
5 the end of the period of disqualification only if he successfully completes
the driver refresher training course.";
(iii) after sub-section (2) the following sub-sections shall be inserted, namely:
"(2A) The licence holder whose licence has been suspended shall undergo
the driver refresher training course from a school or establishment licenced and
10 regulated under section 12 or such other agency, as may be notified by the
Central Government.
(2B) The nature, syllabus and duration of the driver refresher training
course shall be such as may be prescribed by the Central Government.;
(iv) in sub-section (3) after the word, brackets and figure "sub-section (1)", the
15 words, brackets, figure and letter "or sub-section (1A)" shall be inserted.
12. After section 25 of the principal Act, the following section shall be inserted, Insertion of
namely: new section
25A.
"25A. (1) The Central Government shall maintain a National Register of Driving National
Licences in such form and manner as may be prescribed. Register of
Driving
20 (2) All State Registers of Driving Licences shall be subsumed under the National Licences.
Register of Driving Licences by a date to be notified by the Central Government.
(3) No driving licence issued, or renewed, under this Act shall be valid unless it
has been issued a unique driving licence number under the National Register of Driving
Licences.
25 (4) All State Governments and licensing authorities under this Act shall transmit
all information including contained data in the State Register of Driving Licences in
such form and manner as may be prescribed by the Central Government.
(5) The State Governments shall be entitled to access the National Register and
update their records in such manner as may be prescribed by the Central Government..
30 13. In section 26 of the principal Act, Amendment
of section 26.
(i) in sub-section (1), for the words "the following particulars, namely", the
words "particulars, including" shall be substituted;
(ii) sub-section (2), shall be omitted.
of section 27.
35 (i) after clause (d) the following clause shall be inserted, namely:
"(da) the form and manner in which a licensing authority may issue a
learner's licence under sub-section (6) of section 8;"
(db) the manner in which a licensing authority may verify the identity of
the applicant under the third proviso to sub-section (6) of section 8;
40 (ii) after clause (j) the following clauses shall be inserted, namely:
"(ja) the curriculum of training modules and the regulation of schools and
establishments under sub-section (6) of section 12;
(jb) the conditions for the renewal of licence to drive transport vehicles
carrying goods of dangerous or hazardous nature and other motor vehicles
45 under clause (a) and clause (b) of sub-section (2) of section 14;";
(jc) the manner in which a licensing authority may verify the identity of the
applicant under the third proviso to sub-section (2) of section 11;
(iii) after clause (n) the following clauses shall be inserted, namely:
6
"(na) the manner of placing in the public domain of the name of the licence
holder as referred to in sub-section (1A) of section 19;
(nb) providing for the nature, syllabus and duration of the driver refresher
training course as referred to in sub-section (2B) of section 19;";
(iv) after clause (o), the following clause shall be inserted, namely: 5
"(oa) all or any of the matters referred to in section 25A;;

(v) in clause (p), after the word, brackets and figure "sub-section (1)", the words
brackets and figure "and sub-section (2)" shall be inserted.
Amendment 15. In section 40 of the principal Act, for the words "a registering authority", the words
of section 40. "any registering authority in the State" shall be substituted. 10

of section 41.
(i) in sub-section (1), after the proviso, the following proviso shall be inserted,
namely:
"Provided further that in the case of a new motor vehicle, the application
for registration in the State shall be made by the dealer of such motor vehicle, if 15
the new motor vehicle is being registered in the same State in which the dealer is
situated.";
(ii) in sub-section (3),
(a) for the words "to the owner of a motor vehicle registered by it a
certificate of registration", the words "a certificate of registration in the name of 20
the owner" shall be substituted;
(iii) in sub-section (6), the following proviso shall be inserted, namely:
"Provided that in case of a new motor vehicle, the application for the
registration of which was made under the second proviso to sub-section (1),
such motor vehicle shall not be delivered to the owner until such registration 25
mark is displayed on the motor vehicle in such form and manner as may prescribed
by the Central Government.";
(iv) in sub-section (7),
(a) the words "other than a transport vehicle" shall be omitted; and
(b) after the words " date of issue of such certificate", the words "or for 30
such period as may be prescribed by the Central Government" shall be inserted;
(v) in sub-section (8), the words "other than a transport vehicle", shall be omitted;
(vi) in sub-section (10),
(a) for the words "for a period of five years", the words " for such period,
as may be prescribed by the Central Government" shall be substituted; 35
(b) the following proviso shall be inserted, namely:

"Provided that the Central Government may prescribe different period
of renewal for different types of motor vehicles.";
(vii) in sub-section (11),
(a) for the words and figures " section 177, such amount not exceeding 40
one hundred", the words, brackets, figures and letter " sub-section (1) of section
192B, such amount not exceeding five thousand" shall be substituted; and
(b) in the proviso, for the word and figures "section 177", the words
brackets, figures and letter "sub-section (1) of section 192B" shall be substituted;
7
(viii) after sub-section (11), the following sub-section shall be inserted, namely:
"(11A) If a dealer fails to make an application under the second proviso to
sub-section (1), the registering authority may, having regard to the circumstances
of the case, require the dealer to pay, in lieu of any action that may be taken
5 against him under sub-section (2) of section 192B, such amount not exceeding
fifteen thousand rupees as may be prescribed under sub-section (13):
Provided that an action under sub-section (2) of section 192B shall be taken
against the dealer where the dealer fails to pay the said amount.";
(ix) for sub-section (12), the following sub-section shall be substituted, namely:
10 "(12) Where the owner or the dealer has paid the amount under sub-
section (11) or sub-section (11A), as the case may be, no action shall be taken
against him under sub-section (1) or sub-section (2) of section 192B, as the case
may be.";
(x) for sub-section (13), the following sub-section shall be substituted, namely:
15 "(13) For the purposes of sub-section (11) and sub-section (11A), the
State Government may prescribe different amounts having regard to the period
of delay on the part of such owner or dealer in making an application under sub-
section (1) or sub-section (8), as the case may be.".
17. For section 43 of the principal Act, the following section shall be substituted, Amendment
namely: of section 43.
20
43. Notwithstanding anything contained in section 40, the owner of a motor
vehicle may apply to any registering authority or other authority as may be prescribed
by the State Government to have the motor vehicle temporarily registered and such
authority shall issue a temporary certificate of registration and temporary registration
25 mark in accordance with such rules as may be made by the Central Government:
Provided that the State Government may register a motor vehicle that plies,
temporarily, within the State and issue a certificate of registration and registration mark
for a period of one month in such manner as may be prescribed by the State Government.".
18. For section 44 of the principal Act, the following section shall be substituted, Amendment
30 namely: of section 44.
"44.(1) Subject to such terms and conditions as may be prescribed by the Central Production of
Government in this behalf, a motor vehicle sold by an authorised dealer shall not vehicle at the
require production before a registering authority for the purposes of registration for time of
registration.
the first time.
35 (2) Subject to such terms and conditions as may be prescribed by the State
Government, a person in whose name a certificate of registration has been issued shall
not be required to produce the vehicle registered or transferred before a register
authority.".
of section 49.
40 (i) sub-section (1), for the words "registering authority, to that other registering
authority" the words "State, to any registering authority in that State" shall be
substituted;
(ii) after sub-section (1), the following sub-section shall be inserted, namely:
"(1A) The intimation under sub-section (1) may be sent to the appropriate
45 registering authority in electronic form along with the electronic form of such
documents, including proof of authentication in such manner as may be
prescribed by the Central Government.";
(iii) in sub-section (2), for the words "one hundred rupees", the words "five
hundred rupees" shall be substituted.
of section 52.
8
(i) in sub-section (1), for the second proviso, the following proviso shall be
substituted, namely:
Provided further that the Central Government may prescribe
specifications, conditions for approval, retrofitment and other related matters
for the alteration of motor vehicles and in such cases, the warranty granted by 5
the manufacturer shall not be considered as void for the purposes of such
alteration or retrofitment.;
"(1A) A manufacturer of a motor vehicle shall on the direction issued by
the Central Government, alter or retrofit safety equipment, or any other equipment 10
in accordance with such standards and specifications as may be specified by
the Central Government.";
(iii) for sub-section (2), the following sub-section shall be substituted, namely:
"(2) Notwithstanding anything contained in sub-section (1), any person
may, with the subsequent approval of the registering authority, alter or cause to 15
be altered any vehicle owned by him to be converted into an adapted vehicle:
Provided that such alteration complies with such conditions as may be
imposed by the Central Government.";
(iv) in sub-section (3), the words, brackets and figure "or by reason of replacement
of its engine without such approval under sub-section (2)" shall be omitted. 20
Amendment 21. In section 55 of the principal Act, after sub-section (5), the following sub-section
of section 55. shall be inserted, namely:
"(5A) If any registering authority or other prescribed authority has reasons to
believe that any motor vehicle within its jurisdiction has been used in the commission
of an offence punishable under section 199A, the authority may, after giving the owner 25
an opportunity of making a representation in writing, cancel the certificate of registration
of the vehicle for a period of one year:
Provided that the owner of the motor vehicle may apply for fresh registration in
accordance with the provisions of section 40 and section 41.".
Amendment 22. In section 56 of the principal Act, 30
of section 56.
(i) in sub-section (1), after the proviso, the following proviso shall be inserted,
namely:
"Provided further that no certificate of fitness shall be granted to a vehicle,
after the 1st day of October, 2019, unless such vehicle has been tested at an
automated testing station."; 35
(ii) for sub-section (2), the following sub-section shall be substituted, namely:
"(2) The "authorised testing station" referred to in sub-section (1) means
any facility, including automated testing facilities, authorised by the State
Government, where fitness testing may be conducted in accordance with the
rules made by the Central Government for recognition, regulation and control of 40
such stations.";
(iii) in sub-section (4), for the proviso, the following provisos shall be substituted,
namely:
"Provided that no such cancellation shall be made by the prescribed
authority unless, 45
(a) such prescribed authority holds such technical qualification as

may be prescribed by the Central Government and where the prescribed
9
authority does not hold the technical qualification, such cancellation is

made on the basis of the report of an officer having such qualification, and
(b) the reasons recorded in writing cancelling a certificate of fitness
are confirmed by an authorised testing station chosen by the owner of the
5 vehicle whose certificate of fitness is sought to be cancelled:
Provided further that if the cancellation is confirmed by the authorised
testing station, the cost of undertaking the test shall be borne by the owner of
the vehicle being tested and in the alternative by the prescribed authority.";
(iv) after sub-section (5), the following sub-sections shall be inserted, namely:
10 "(6) All transport vehicles with a valid certificate of fitness issued under
this section shall carry, on their bodies, in a clear and visible manner such
distinguishing mark as may be prescribed by the Central Government.
(7) Subject to such conditions as the Central Government may prescribe,
the provisions of this section may be extended to non-transport vehicles.".
15 23. In section 59 of the principal Act, after sub-section (3), the following sub-section Amendment
shall be inserted, namely: of section 59.
"(4) The Central Government may, having regard to the public safety,
convenience, protection of the environment and the objects of this Act, make rules
prescribing the manner of recycling of motor vehicles and parts thereof which have
20 exceeded their life.".
24. After section 62 in the principal Act, the following sections shall be inserted, Insertion of
namely: new sections
62A and 62B.
"62A. (1) No registering authority shall register any motor vehicle that Prohibition
contravenes any rule made under clause (a) of sub-section (1) of section 110. of
registration
25 (2) No prescribed authority or authorised testing station shall issue a certificate and issuance
of fitness under section 56 to any motor vehicle that contravenes any rule made under of certificate
of fitness to
section 110. oversized
vehicles.
62B. (1) The Central Government shall maintain a National Register of Motor National
Vehicles in such form and manner as may be prescribed by it: Register of
Motor
30 Provided that all State Registers of Motor Vehicles shall be subsumed under the Vehicles.
National Register of Motor Vehicles by such date as may be notified in the Official
Gazette by the Central Government.
(2) No certificate of registration issued, or renewed, under this Act shall be valid
unless it has been issued a unique registration number under the National Register of
35 Motor Vehicles.
(3) In order to maintain the National Register of Motor Vehicles, all State
Governments and registering authorities under this Act shall transmit all information
and data in the State Register of Motor Vehicles to the Central Government in such
form and manner as may be prescribed by the Central Government.
40 (4) State Governments shall be able to access the National Register of Motor
Vehicles and update records in accordance with the provisions of this Act and the
rules made by the Central Government thereunder.".
of section 63.
(i) in sub-section (1), for the words "the following particulars, namely", the
45 words "particulars, including" shall be substituted;
10
(ii) for sub-section (2), the following sub-section shall be substituted, namely:
"(2) Each State Government shall supply the updated details of the State
Register of Motor Vehicles to the Central Government in such form as the Central
Government may prescribe.";
(iii) after sub-section (3), the following sub-section shall be inserted, namely: 5
"(4) All State Registers of Motor Vehicles shall be subsumed under the
National Register of Motor Vehicles by such date as may be notified by the
Central Government.".
of section 64.
(i) after clause (d), the following clause shall be inserted, namely: 10
"(da) providing for the period of validity of a certificate of registration
under sub-section (7) of section 41;";
(ii) after clause (e), the following clause shall be inserted, namely:
"(ea) the period of renewal of certificate of registration of different types
of motor vehicles under sub-section (10) of section 41;"; 15
(iii) after clause (f), the following clauses shall be inserted, namely:
"(fa) the issue of temporary certificate of registration and temporary
registration mark under section 43;
(fb) the terms and conditions under which a motor vehicle sold by an
authorised dealer shall not require production before a registering authority 20
under sub-section (1) of section 44;";
(iv) after clause (j), the following clause shall be inserted, namely:
"(ja) the form and manner for the electronic submission of the intimation
of change of address, documents to be submitted along with such intimation
including proof of authentication under sub-section (1A) of section 49;"; 25
(v) after clause (l), the following clauses shall be inserted, namely:
"(la) specifications, conditions for approval, retrofitment and other related
matters for the alteration of motor vehicles under sub-section (1) of section 52;
(lb) the conditions for the alteration of any motor vehicle into an adapted
vehicle under sub-section (2) of section 52;"; 30
(vi) after clause (n) the following clauses shall be inserted, namely:
"(na) the distinguishing mark to be carried on the body of transport vehicles
under sub-section (6) of section 56;
(nb) the conditions under which the application of section 56 may be
extended to non-transport vehicles under sub-section (7) of section 56; 35
(nc) the recycling of motor vehicles and parts thereof which have exceeded
their life under sub-section (4) of section 59;";
(vii) after clause (o), the following clauses shall be inserted, namely:
(oa) all or any of the matters under in section 62B;
(ob) all or any of the matters under sub-section (1) and sub-section (2) of 40
section 63;.
27. In section 65 of the principal Act, in sub-section (2), in clause (f), after the word
Amendment "marks", the words and figures "under proviso to section 43" shall be inserted.".
of section 65.
28. In section 66 of the principal Act,
(i) in sub-section (1), after the third proviso, the following proviso shall be 45
inserted, namely:
"Provided also that where a transport vehicle has been issued any permit
or permits, as well as a licence under this Act, such vehicle may be used either
11
under the permit, or permits, so issued to it, or under such licence, at the discretion
of the vehicle owner.";
(ii) in sub-section (3), after clause (p), the following clause shall be inserted,
namely:
5 "(q) to any transport vehicle having been issued a licence under a scheme
under sub-section (3) of section 67 or sub-section (1) of section 88A, or plying
under such orders as may be issued by the Central Government or by the State
Government.".
29. After section 66 of the principal Act, the following sections shall be inserted, Insertion of
10 namely: new sections
66A and 66B.
"66A. (1) The Central Government may develop a National Transportation Policy National
consistent with the objects of this Act in consultation with State Governments and Transportation
Policy.
other agencies with a view to
(i) establish a planning framework for passengers and goods transportation
15 within which transport bodies are to operate;
(ii) establish a medium and long term planning framework for all forms of
road transport, identify areas for the development of transport improvement
infrastructure across India in consultation with the authorities and agencies
related to ports, railways and aviation as well as with local and State level planning,
20 land holding and regulatory authorities for the delivery of an integrated multi-
modal transport system;
(iii) establish the framework of grant of permits and schemes;
(iv) establish strategic policy for transport by road and its role as a link to
other means of transport;
25 (v) identify strategic policies and specify priorities for the transport system
that address current and future challenges;
(vi) provide medium to long term strategic directions, priorities and actions;
(vii) promote competition, innovation, increase in capacity, seamless
mobility and greater efficiency in transport of goods or livestock or passengers,
30 and economical use of resources;
(viii) safeguard the interest of the public and promote equity, while seeking
to enhance private participation and public-private partnership in the transport
sector;
(ix) demonstrate an integrated approach to transport and land use
35 planning;
(x) identify the challenges that the National Transportation Policy seeks
to address;
(xi) address any other matter deemed relevant by the Central Government.
66B. No person who holds the permit issued under this Act shall No bar against
permit holders
40 (a) be disqualified from applying for a licence under the scheme made to apply and
under sub-section (3) of section 67 or sub-section (1) of section 88A by reason hold licences
of holding such permit; and under schemes.
(b) be required to get such permit cancelled on being issued a licence

under any scheme made under this Act.".
of section 67.
12
(i) for sub-section (1), the following sub-section shall be substituted, namely:
"(1) A State Government, having regard to
(a) the advantages offered to the public, trade and industry by the
development of motor transport;
(b) the desirability of co-ordinating road and rail transport; 5
(c) the desirability of preventing the deterioration of the road system;
and
(d) promoting effective competition among the transport service
providers,
may, from time to time, by notification in the Official Gazette issue directions 10
both to the State Transport Authority and Regional Transport Authority regarding
the passengers' convenience, economically competitive fares, prevention of
overcrowding and road safety.";
(ii) in sub-section (2), the following proviso shall be inserted, namely:
"Provided that the State Government may subject to such conditions as it 15
may deem fit, and with a view to achieving the objectives specified in clause (d)
of sub-section (1), relax all or any of the provisions made under this Chapter.";
(iii) after sub-section (2), the following sub-sections shall be inserted, namely:
"(3) Notwithstanding anything contained in this Act, the State Government
may, by notification in the Official Gazette modify any permit issued under this 20
Act or make schemes for the transportation of goods and passengers and issue
licences under such scheme for the promotion of development and efficiency in
transportation
(a) last mile connectivity;
(b) rural transport; 25
(c) reducing traffic congestion;
(d) improving urban transport;
(e) safety of road users;
(f) better utilisation of transportation assets;
(g) the enhancement of economic vitality of the area, though 30
competitiveness, productivity, and efficiency;
(h) the increase in the accessibility and mobility of people;
(i) the protection and enhancement of the environment;
(j) the promotion of energy conservation;
(k) improvement of the quality of life; 35
(l) enhance integration and connectivity of the transportation
system, across and between modes of transport; and
(m) such other matters as the Central Government may be deemed
fit.
(4) The scheme framed under sub-section (3), shall specify the fees to be 40
charged, form of application and grant of a licence including the renewal,
suspension cancellation or modification of such licence.".
Amendment 31. In section 72 of the principal Act, in sub-section (2), the following proviso shall be
of section 72. inserted, namely:
"Provided that the Regional Transport Authority may waive any such condition 45
for a Stage carriage permit operating in a rural area, as it deems fit.".
of section 74.
13
(i) in sub-section (2), the following proviso shall be inserted, namely:

"Provided that the Regional Transport Authority may in the interests of
last mile connectivity waive any such condition in respect of any such types of
vehicles as may be specified by the Central Government.":
5 (ii) in sub-section (3), in the proviso to clause (b), after sub-clause (vi), the
following sub-clause shall be inserted, namely:
"(vii) self-help groups.".
namely: new section
88A.
10 "88A. (1) Notwithstanding anything contained in this Act, the Central Power of
Government may, by notification in the Official Gazette, modify any permit issued Central
Government to
under this Act or make schemes for national, multimodal and inter-State transportation make schemes
of goods or passengers, and issue or modify licences under, such scheme for the for national,
following purposes namely: multimodal and
inter-State
15 (a) last mile connectivity; transport of
passengers and
(b) rural transport; goods.
(c) improving the movement of freight, and logistics;
(d) better utilisation of transportation assets;
(e) the enhancement to the economic vitality of the area, especially by
20 enabling competitiveness, productivity and efficiency;
(f) the increase in the accessibility and mobility of people;
(g) the protection and enhancement of the environment;
(h) the promotion of energy conservation;
(i) improvement of the quality of life;
25 (j) enhancement of the integration and connectivity of the transportation
system, across and between modes of transport;
(k) such other matters as the Central Government may deem fit:
Provided that the Central Government may, before taking any action under
this sub-section consult the State Governments.
30 (2) Notwithstanding anything contained in sub-section (1), two or more States
may make schemes for the operation within such States for the inter-State transportation
of goods or passengers:
Provided that in the event of any repugnancy between the schemes made
by the Central Government under sub-section (1) and schemes made by two or
35 more States under this sub-section, the schemes made under sub-section (1)
shall prevail.
34. In section 92 of the principal Act, for the words "stage carriage or contract carriage, Amendment
of section 92.
in respect of which a permit", the words "transport vehicle, in respect of which a permit or
licence" shall be substituted.
of section 93.
(i) for the marginal heading, the following marginal heading shall be substituted,
namely:
"Agent or canvasser or aggregator to obtain licence.";
45 (a) after clause (ii), the following clause shall be inserted, namely:
14
"(iii) as an aggregator;";
(b) the following provisos shall be inserted, namely:
"Provided that while issuing the licence to an aggregator the State
Government may follow such guidelines as may be issued by the Central
Government: 5
Provided further that every aggregator shall comply with the

provisions of the Information Technology Act, 2000 and the rules and 21 of 2000.
regulations made thereunder.".
Amendment 36. In section 94 of the principal Act, after the word "permit" occurring at both the
of section 94. places, the words "or licence issued under any scheme" shall be inserted. 10
Amendment 37. In section 96 of the principal Act, in sub-section (2), after clause (xxxii), the
to section 96. following clauses shall be inserted, namely:
"(xxxiia) framing of schemes under sub-section (3) of section 67;
(xxxiib) the promotion of effective competition, passenger convenience and
safety, competitive fares and prevention of overcrowding.". 15

section 110.
(i) in sub-section (1), in clause (k), after the words "standards of the
components", the words ", including software," shall be inserted,
(ii) in sub-section (2), after the words "in particular circumstances", the words
"and such rules may lay down the procedure for investigation, the officers empowered 20
to conduct such investigations, the procedure for hearing of such matters and the
penalties to be levied thereunder" shall be inserted,
(iii) after sub-section (2), the following sub-section shall be inserted, namely:
"(2A) Persons empowered under sub-section (2) to conduct investigations
referred to in sub-section (2) shall have all the powers of a civil court, while 25
trying a suit under the Code of Civil Procedure, 1908 in respect of the following 5 of 1908.
matters, namely :
(a) summoning and enforcing the attendance of any person and
examining him on oath;
(b) requiring the discovery and production of any document; 30
(c) receiving evidence on affidavit; and

(d) any other matter as may be prescribed.".
Insertion of 39. After section 110 of the principal Act, the following sections shall be inserted,
new sections namely:
110A and
110B.
Recall of "110A. (1) The Central Government may, by order, direct a manufacturer to recall 35
motor motor vehicles of a particular type or its variants, if
vehicles.
(a) a defect in that particular type of motor vehicle may cause harm to the
environment or to the driver or occupants of such motor vehicle or other road
users; and
(b) a defect in that particular type of motor vehicle has been reported to 40
the Central Government by
(i) such percentage of owners, as the Central Government, may by
notification in the Official Gazette, specify; or
15
(ii) a testing agency; or

(iii) any other source.
(2) Where the defect referred to in sub-section (1) lies in a motor vehicle
component, the Central Government may, by order, direct a manufacturer to recall all
5 motor vehicles which contain such component, regardless of the type or its variants of
such motor vehicle.
(3) A manufacturer whose vehicles are recalled under sub-section (1) or sub-
section (2), shall
(a) reimburse the buyers for the full cost of the motor vehicle, subject to
10 any hire-purchase or lease-hypothecation agreement; or
(b) replace the defective motor vehicle with another motor vehicle of similar
or better specifications which complies with the standards specified under this
Act or repair it; and
(c) pay such fines and other dues in accordance with sub-section (6).
15 (4) Where a manufacturer notices a defect in a motor vehicle manufactured by
him, he shall inform the Central Government of the defect and initiate recall proceedings
and in such case the manufacturer shall not be liable to pay fine under sub-section (3).
(5) The Central Government may authorise any officer to conduct investigation
under this section who shall have all the powers of a civil court, while trying a suit
5 of 1908. 2 0 under the Code of Civil Procedure, 1908 in respect of the following matters, namely:
(a) summoning and enforcing the attendance of any person and examining
him on oath;
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavit; and
25 (d) any other matter as may be prescribed.
(6) The Central Government may make rules for regulating the recall of motor
vehicles, of a particular type or its variants, for any defect which in the opinion of the
Central Government, may cause harm to the environment or to the driver or occupants
of such motor vehicle or to other road users.
30 110B. (1) No motor vehicle, including a trailer or semi-trailer or modular hydraulic Type-
trailer or side car shall be sold or delivered or offered for sale or delivery or used in a approval
certificate
public place in India unless a type approval certificate referred to in sub-section (2)
and testing
has been issued in respect of such vehicle: agencies.
Provided that the Central Government may, by notification in the Official Gazette,
35 extend the requirement of type approval certificate to other vehicles drawn or intended
to be drawn by a motor vehicle:
Provided further that such certificate shall not be required for vehicles which
are
(a) intended for export or display or demonstration or exhibition; or
40 (b) used by a manufacturer of motor vehicles or motor vehicle components
or a research and development centre or a test by agency for testing and
validation or for data collection, inside factory premises or in a non-public place;
or
(c) exempted by the Central Government.
45 (2) The manufacturer or importer of motor vehicles including trailers, semi-trailers,
modular hydraulic trailers and side cars shall submit the prototype of the vehicle to be
16
manufactured or imported for test to a testing agency for obtaining a type-approval

certificate by such agency.
(3) The Central Government shall make rules for the accreditation, registration
and regulation of testing agencies.
(4) The testing agencies shall conduct tests on vehicles drawn from the 5
production line of the manufacturer or obtained otherwise to verify the conformity of
such vehicles to the provisions of this Chapter and the rules and regulations made
thereunder.
(5) Where the motor vehicle having a type-approval certificate is recalled under
section 110A, the testing agency which granted the certificate to such motor vehicle 10
shall be liable for its accreditation and registration to be cancelled.".
Amendment 40. In section 114 of the principal Act, in sub-section (1), for the words "authorised in
of section this behalf by the State Government", the words "or any other person authorised in this
114.
behalf by the State Government" shall be substituted.
Amendment 41. In section 116 of the principal Act, 15
of section
116. (i) after sub-section (1), the following sub-section shall be inserted, namely:
"(1A) Notwithstanding anything contained in sub-section (1), the National
Highways Authority of India constituted under the National Highways Authority
of India Act, 1988 or any other agency authorised by the Central Government, 68 of 1988.
may cause or permit traffic signs, as provided in the First Schedule, to be placed 20
or erected or removed on national highways for the purpose of regulating motor
vehicle traffic and may order the removal of any sign or advertisement which in
its opinion is so placed as to obscure any traffic sign from view or is so similar in
appearance to a traffic sign as to mislead or is likely to distract the attention or
concentration of the driver: 25
Provided that for the purposes of this sub-section the National Highway
Authority of India or any other agency authorised by the Central Government
may seek assistance from the authorities of the State Government and the said
State Government shall provide such assistance.".
Amendment
of section (ii) in sub-section (3), after the words, brackets and figure "provided by sub- 30
117. section (1)", the words, brackets, figure and letter "or sub-section (1A)" shall be
inserted; and
42. In section 117 of the principal Act, the following provisos shall be inserted,
namely:
"Provided that the State Government or the authorised authority shall, give primacy 35
to the safety of road users and the free flow of traffic in determining such places:
Provided further that for the purpose of this section the National Highways
Authority of India, constituted under the National Highways Authority of India Act,
Amendment of 68 of 1988.
1988 or any other agency authorised by the Central Government, may also specify
section 129.
such places.". 40
Wearing of 43. For section 129 of the principal Act, the following section shall be substituted,
protective
namely:
headgear.
"129. Every person, above four years of age, driving or riding or being carried on
a motor cycle of any class or description shall, while in a public place, wear protective
headgear conforming to such standards as may be prescribed by the Central Government: 45
Provided that the provisions of this section shall not apply to a person who is a Sikh,
if, while driving or riding on the motor cycle, in a public place, he is wearing a turban:
Provided further that the Central Government may by rules provide for measures
for the safety of children below four years of age riding or being carried on a motorcycle.
Explanation."Protective headgear" means a helmet which, 50
(a) by virtue of its shape, material and construction, could reasonably be
expected to afford to the person driving or riding on a motor cycle a degree or
protection from injury in the event of an accident; and
17
(b) is securely fastened to the head of the wearer by means of straps or

other fastenings provided on the headgear.".
namely: new section
134A.
5 "134A. (1) A Good Samaritan shall not be liable for any civil or criminal action for Protection of
any injury to or death of the victim of an accident involving a motor vehicle, where good
Samaritans.
such injury or death resulted from the Good Samaritan's negligence in acting or failing
to act while rendering emergency medical or non-medical care or assistance.
(2) The Central Government may by rules provide for the procedure for
10 questioning or examination of the Good Samaritan, disclosure of personal information
of the Good Samaritan and such other related matters.
'Explanation.For the purpose of this section, "Good Samaritan" means a
person, who is in good faith, voluntarily and without expectation of any reward or
compensation renders emergency medical or non-medical care or assistance at the
15 scene of an accident to the victim or transporting such victim to the hospital.'.
of section
(i) in sub-section (1), 135.
(a) in clause (c), the word "and" shall be omitted;
(b) in clause (d), for the word "highways", the word "highways and" shall
20 be substituted; and
(ii) after clause (d), the following clause shall be inserted, namely:
"(e) any other amenities in the interests of the safety and the convenience
of the public.";
25 "(3) The Central Government may, by notification in the Official Gazette,
make one or more schemes to conduct in-depth studies on the causes and
analysis of road accidents.".
namely: new section
136A.
30 "136A. (1) The State Government shall ensure electronic monitoring and Electronic
enforcement of road safety in the manner provided under sub-section (2) on National monitoring
and
highways, State highways, roads or in any urban city within a State which has a
enforcement
population upto such limits as may be prescribed by the Central Government. of road
(2) The Central Government shall make rules for the electronic monitoring and safety.
35 enforcement of road safety including speed cameras, closed-circuit television cameras,
speed guns, body wearable cameras and such other technology.
Explanation.For the purpose of this section the expression "body wearable
camera" means a mobile audio and video capture device worn on the body or uniform
of a person authorised by the State Government.".
Amendment
40 47. In section 137 of the principal Act,
of section
(i) after clause (a), the following clause shall be inserted, namely: 137.
"(aa) providing for the standards of protective headgear and measures for
the safety of children below the age of four years riding under section 129;"
(ii) after clause (b), the following clause shall be inserted, namely:
45 "(c) providing for criteria for the selection of cities by the State Governments
where the electronic monitoring and enforcement under in sub-section (1) of
section 136A is to implemented; and
18
(d) providing for electronic monitoring and enforcement under

sub-section (2) of section 136A.".
Amendment 48. In section 138 of the principal Act, after sub-section (1), the following sub-section
of section shall be inserted, namely:
138.
"(1A) The State Government may, in the interest of road safety, make rules for the 5
purposes of regulating the activities and access of non-mechanically propelled vehicles
and pediestrians to public places and national highways:
Provided that in the case of national highways, such rules shall be framed in
consultation with the National Highways Authority of India.".
Omission of 49. Chapter X in the principal Act, shall be omitted. 10
Chapter X.
Substitution of 50. For Chapter XI of the principal Act, the following Chapter shall be substituted,
new Chapter namely:
for Chapter
XI. "CHAPTER XI
INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS
Definitions. 145. In this Chapter, 15
(a) "authorised insurer" means an insurer for the time being carrying on
general insurance business in India and granted a certificate of registration by
the Insurance Regulatory and Development Authority of India established under
section 3 of the Insurance Regulatory and Development Authority Act, 1999 and
any Government insurance fund authorised to do general insurance business 41 of 1999.
under the General Insurance Business (Nationalization) Act, 1972; 20
(b) "certificate of insurance" means a certificate issued by an authorised
insurer in pursuance of section 147 and includes a cover note complying with 57 of 1972.
such requirements as may be prescribed, and where more than one certificate
has been issued in connection with a policy, or where a copy of a certificate has
been issued, all those certificates or that copy, as the case may be; 25
(c) "grievous hurt" shall have the same meaning as assigned to it in section
320 of the Indian Penal Code, 1860; 45 of 1860.
(d) "hit and run motor accident" means an accident arising out of the use
of a motor vehicle or motor vehicles the identity whereof cannot be ascertained
in spite of reasonable efforts for the purpose; 30
(e) "Insurance Regulatory and Development Authority" means the
Insurance Regulatory and Development Authority established under section 3 41 of 1999.
of the Insurance Regulatory and Development Authority Act, 1999;
(f) "policy of insurance" includes certificate of insurance;
(g) "property" includes roads, bridges, culverts, causeways, trees, posts, 35
milestones and baggage of passengers and goods carried in any motor vehicle;
(h) "reciprocating country" means any such country as may on the basis
of reciprocity be notified by the Central Government in the Official Gazette to be
a reciprocating country for the purposes of this Act;
(i) "third party" includes the Government, the driver and any other co- 40
worker on a transport vehicle.
Necessity for 146. (1) No person shall use, except as a passenger, or cause or allow any other person
insurance to use, a motor vehicle in a public place, unless there is in force, in relation to the use of the
against third
party risks.
vehicle by that person or that other person, as the case may be, a policy of insurance
complying with the requirements of this Chapter: 45
Provided that in the case of a vehicle carrying, or meant to carry, dangerous or hazardous
goods, there shall also be a policy of insurance under the Public Liability Insurance
Act, 1991.
Explanation. For the purposes of this sub-section, a person driving a motor
vehicle merely as a paid employee, while there is in relation to the use of the vehicle no 50
such policy in force as is required by this sub-section, shall not be deemed to act in
contravention of the sub-section unless he knows or has reason to believe that there 6 of 1991.
is no such policy in force.
19
(2) The provisions of sub-section (1) shall not apply to any vehicle owned by the
Central Government or a State Government and used for purposes not connected with any
commercial enterprise.
(3) The appropriate Government may, by order, exempt from the operation of sub-
5 section (1), any vehicle owned by any of the following authorities, namely:
(a) the Central Government or a State Government, if the vehicle is ued for pusposes
connected with any commercial enterprise;
(b) any local authority;
(c) any State Transport Undertaking:
10 Provided that no such order shall be made in relation to any such authority unless a
fund has been established and is maintained by that authority in such manner as may be
prescribed by appropriate Government.
Explanation.For the purposes of this sub-section, "appropriate Government" means
the Central Government or a State Government, as the case may be, and
15 (i) in relation to any corporation or compnay owned by the Central Government or any
State Government, means the Central Government or that State Government;
(ii) in relation to any corporation or company owned by the Central Government and
one or more State Governments, means the Central Government;
(iii) in relation to any other State Transport Undertaking or any local authority, means
that Government which has control over that undertaking or authority.
20
147. (1) In order to comply with the requirements of this Chapter, a policy of Requirement
insurance must be a policy which of policies
and limits of
(a) is issued by a person who is an authorised insurer; and liability.
(b) insures the person or classes of persons specified in the policy to the
25 extent specified in sub-section (2)
(i) against any liability which may be incurred by him in respect of
the death of or bodily injury to any person including owner of the goods
or his authorised representative carried in the motor vehicle or damage to
any property of a third party caused by or arising out of the use of the
motor vehicle in a public place;
30
(ii) against the death of or bodily injury to any passenger of a
transport vehicle, except gratuitous passengers of a goods vehicle, caused
by or arising out of the use of the motor vehicle in a public place.
Explanation For the removal of doubts, it is hereby clarified that the death of
or bodily injury to any person or damage to any property of a third party shall be
35 deemed to have been caused by or to have arisen out of, the use of a vehicle in a public
place, notwithstanding that the person who is dead or injured or the property which is
damaged was not in a public place at the time of the accident, if the act or omission
which led to the accident occurred in a public place.
(2) Notwithstanding anything contained under any other law for the time being
40 in force, for the purposes of third party insurance related to either death of a person or
grievous hurt to a person, the Central Government shall prescribe a base premium and
the liability of an insurer in relation to such premium for an insurance policy under sub-
section (1) in consultation with the Insurance Regulatory and Development Authority:
(3) A policy shall be of no effect for the purposes of this Chapter unless and until
45 there is issued by the insurer in favour of the person by whom the policy is effected a
certificate of insurance in the prescribed form and containing the prescribed particulars
of any condition subject to which the policy is issued and of any other prescribed
matters; and different forms, particulars and matters may be prescribed in different cases.
(4) Notwithstanding anything contained in this Act, a policy of Insurance issued
before the commencement of the Motor Vehicles (Amendment) Act, 2017 shall be
50 continued on the existing terms under the contract and the provisions of this Act shall
apply as if this Act had not been amended by the said Act.
20
(5) Where a cover note issued by the insurer under the provisions of this
Chapter or the rules or regulations made thereunder is not followed by a policy of
insurance within the specified time, the insurer shall, within seven days of the expiry of
the period of the validity of the cover note, notify the fact to the registering authority
or to such other authority as the State Government may prescribe. 5
(6) Notwithstanding anything contained in any other law for the time being in
force, an insurer issuing a policy of insurance under this section shall be liable to
indemnify the person or classes of persons specified in the policy in respect of any
liability which the policy purports to cover in the case of that person or those classes
of persons. 10
Validity of 148. Where, in pursuance of an arrangement between India and any reciprocating
policies of country, the motor vehicle registered in the reciprocating country operates on any
insurance
issued in route or within any area common to the two countries and there is in force in relation to
reciprocating the use of the vehicle in the reciprocating country, a policy of insurance complying
countries. with the requirements of the law of insurance for the time being in force in that country, 15
then, notwithstanding anything contained in section 147 but subject to any rules
which may be made under section 164B such policy of insurance shall be effective
throughout the route or area in respect of which the arrangement has been made, as if
the policy of insurance had complied with the requirements of this Chapter.
Settlement by 149. (1) The insurance company shall, upon receiving information of the accident, 20
insurance
company and
either from claimant or through accident information report or otherwise, designate an
procedure officer to settle the claims relating to such accident.
therefor.
(2) An officer designated by the insurance company for processing the settlement
of claim of compensation may make an offer to the claimant for settlement before the
Claims Tribunal giving such details, within thirty days and after following such 25
procedure as may be prescribed by the Central Government.
(3) If, the claimant to whom the offer is made under sub-section (2),
(a) accepts such offer,
(i) the Claims Tribunal shall make a record of such settlement, and such
claim shall be deemed to be settled by consent; and 30
(ii) the payment shall be made by the insurance company within a maximum
period of thirty days from the date of receipt of such record of settlement;
(b) rejects such offer, a date of hearing shall be fixed by the Claims Tribunal
to adjudicate such claim on merits.
Duty of 150. (1) If, after a certificate of insurance has been issued under sub-section (3) 35
insurers to of section 147 in favour of the person by whom a policy has been effected, judgment
satisfy
or award in respect of any such liability as is required to be covered by a policy under
judgments and
awards against clause (b) of sub-section (1) of section 147 (being a liability covered by the terms of the
persons policy) or under the provisions of section 164 is obtained against any person insured
insured in by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel 40
respect of
or may have avoided or cancelled the policy, the insurer shall, subject to the provisions
third party
risks. of this section, pay to the person entitled to the benefit of the award any sum not
exceeding the sum assured payable thereunder, as if that person were the judgment
debtor, in respect of the liability, together with any amount payable in respect of costs
and any sum payable in respect of interest on that sum by virtue of any enactment 45
relating to interest on judgments.
(2) No sum shall be payable by an insurer under sub-section (1) in respect of
any judgment or award unless, before the commencement of the proceedings in which
the judgment or award is given the insurer had notice through the court or, as the case
may be, the Claims Tribunal of the bringing of the proceedings, or in respect of such 50
21
judgment or award so long as its execution is stayed pending an appeal; and an insurer
to whom notice of the bringing of any such proceedings is so given shall be entitled to
be made a party thereto, and to defend the action on any of the following grounds,
namely:
5 (a) that there has been a breach of a specified condition of the policy,
being one of the following conditions, namely:
(i) a condition excluding the use of the vehicle
(A) for hire or reward, where the vehicle is on the date of the contract
of insurance a vehicle not covered by a permit to ply for hire or reward; or
10 (B) for organised racing and speed testing; or
(C) for a purpose not allowed by the permit under which the vehicle
is used, where the vehicle is a transport vehicle; or
(D) without side-car being attached where the vehicle is a two-
wheeled vehicle; or
15 (ii) a condition excluding driving by a named person or by any person
who is not duly licenced or by any person who has been disqualified for holding
or obtaining a driving licence during the period of disqualification or driving
under the influence of alcohol or drugs as laid down in section 185; or
(iii) a condition excluding liability for injury caused or contributed to by
20 conditions of war, civil war, riot or civil commotion; or
(b) that the policy is void on the ground that it was obtained by non-
disclosure of any material fact or by representation of any fact which was false
in some material particular; or
(c) that there is non-receipt of premium as required under section 64VB of
4 of 1938. 2 5 the Insurance Act, 1938.
(3) Where any such judgment or award as is referred to in sub-section (1) is
obtained from a court in a reciprocating country and in the case of a foreign
judgment is, by virtue of the provisions of section 13 of the Code of Civil
5 of 1908.
Procedure, 1908 conclusive as to any matter adjudicated upon by it, the insurer
4 of 1938. 3 0 (being an insurer registered under the Insurance Act, 1938 and whether or not
that person is registered under the corresponding law of the reciprocating country)
shall be liable to the person entitled to the benefit of the decree in the manner and
to the extend specified in sub-section (1), as if the judgment or award were given
by a court in India:
35 Provided that no sum shall be payable by the insurer in respect of any such
judgment or award unless, before the commencement of the proceedings in which
the judgment or award is given, the insurer had notice through the court concerned
of the bringing of the proceedings and the insurer to whom notice is so given is
entitled under the corresponding law of the reciprocating country, to be made a
40 party to the proceedings and to defend the action on grounds similar to those
specified in sub-section (2).
(4) Where a certificate of insurance has been issued under sub-section (3) of
section 147 to the person by whom a policy has been effected, so much of the policy
as purports to restrict the insurance of the persons insured thereby, by reference to
45 any condition other than those in sub-section (2) shall, as respects such liabilities as
are required to be covered by a policy under clause (b) of sub-section (1) of section
147, be of no effect:
22
(5) No insurer to whom the notice referred to in sub-section (2) or sub-section

(3) has been given shall be entitled to avoid his liability to any person entitled to the
benefit of any such judgment or award as is referred to in sub-section (1) or in such
judgment as is referred to in sub-section (3) otherwise than in the manner provided for
in sub-section (2) or in the corresponding law of the reciprocating country, as the case 5
may be.
(6) If on the date of filing of any claim, the claimant is not aware of the insurance
company with which the vehicle had been insured, it shall be the duty of the owner of
the vehicle to furnish to the tribunal or court the information as to whether the vehicle
had been insured on the date of the accident, and if so, the name of the insurance 10
company with which it is insured.
Explanation. For the purposes of this section,
(a) "award" means an award made by the Claims Tribunal under section
168;
(b) "Claims Tribunal" means a Claims Tribunal constituted under section 15

165;
(c) "liability covered by the terms of the policy" means the liability which
is covered by the policy or which would be so covered but for the fact that the
insurer is entitled to avoid or cancel or has avoided or cancelled the policy; and
(d) "material fact" and "material particular" means, respectively, a fact or 20

particular of such a nature as to influence the judgment of a prudent insurer in
determining whether he shall take the risk and, if so, at what premium and on
what conditions.
Rights of 151. (1) Where under any contract of insurance affected in accordance with the
third parties provisions of this Chapter, a person is insured against liabilities which he may incur to 25
against
insurers on
third parties, then
insolvency of
insured. (a) in the event of the person becoming insolvent or making a composition
or arrangement with his creditors; or
(b) where the insured person is a company, in the event of a winding-up

order being made or a resolution for a voluntary winding-up being passed with 30
respect to the company or of a receiver or manager of the company's business or
undertaking being duly appointed, or of possession being taken by or on behalf
of the holders of any debentures secured by a floating charge of any property
comprised in or subject to the charge,
if, either before or after that event, any such liability is incurred by the insured person 35
his rights against the insurer under the contract in respect of the liability shall,
notwithstanding anything to the contrary in any provision of law, be transferred to
and vest in the third party to whom the liability was so incurred.
(2) Where an order for the administration of the estate of a deceased debtor is
made according to the law of insolvency, then, if any debt provable in insolvency is 40
owing by the deceased in respect of a liability to a third party against which he was
insured under a contract of insurance in accordance with the provisions of this Chapter,
the deceased debtor's rights against the insurer in respect of that liability shall,
notwithstanding anything to the contrary in any provision of law, be transferred to
and vest in the person to whom the debt is owing. 45
23
(3) Any condition in a policy issued for the purposes of this Chapter purporting,
either directly or indirectly, to avoid the policy or to alter the rights of the parties
thereunder upon the happening to the insured person of any of the events specified in
clause (a) or clause (b) of sub-section (1) or upon the making of an order for the
5 administration of the estate of a deceased debtor according to the law of insolvency,
shall be of no effect.
(4) Upon a transfer under sub-section (1) or sub-section (2), the insurer shall be
under the same liability to the third party as he would have been to the insured person,
but
10 (a) if the liability of the insurer to the insured person exceeds the liability
of the insured person to the third party, nothing in this Chapter shall affect the
rights of the insured person against the insurer in respect of the excess amount;
and
(b) if the liability of the insurer to the insured person is less than the
15 liability of the insured person to the third party, nothing in this Chapter shall
affect the rights of the third party against the insured person in respect of the
balance amount.
152. (1) No person against whom a claim is made in respect of any liability Duty to give
referred to in clause (b) of sub-section (1) of section 147 shall, on demand by or on information
as to
20 behalf of the person making the claim, refuse to state whether or not he was insured in
insurance.
respect of that liability by any policy issued under the provisions of this Chapter, or
would have been so insured if the insurer had not avoided or cancelled the policy, nor
shall he refuse, if he was or would have been so insured, to give such particulars with
respect to that policy as were specified in the certificate of insurance issued in respect
25 thereof.
(2) In the event of any person becoming insolvent or making an arrangement
with his creditors or in the event of an order being made for the administration of the
estate of a deceased person according to the law of insolvency, or in the event of a
winding-up order being made or a resolution for a voluntary winding-up being passed
30 with respect to any company or of a receiver or manager of the company's business or
undertaking being duly appointed or of possession being taken by or on behalf of the
holders of any debentures secured by a floating charge on any property comprised in
or subject to the charge, it shall be the duty of the insolvent debtor, personal
representative of the deceased debtor or company, as the case may be, or the official
35 assignee or receiver in insolvency, trustee, liquidator, receiver or manager, or person in
possession of the property to give, on the request of any person claiming that the
insolvent debtor, deceased debtor or company is under such liability to him as is
covered by the provision of this Chapter, such information as may reasonably be
required by him for the purpose of ascertaining whether any rights have been transferred
40 to and vested in him by section 151, and for the purpose of enforcing such rights, if
any, and any such contract of insurance as purports whether directly or indirectly to
avoid the contract or to alter the rights of the parties thereunder upon the giving of
such information in the events aforesaid, or otherwise to prohibit or prevent the giving
thereof in the said events, shall be of no effect.
45 (3) If, from the information given to any person in pursuance of sub-section (2)
or otherwise, he has reasonable ground for supporting that there have or may have
been transferred to him under this Chapter rights against any particular insurer, that
insurer shall be subject to the same duty as is imposed by the said sub-section on the
persons therein mentioned.
50 (4) The duty to give the information imposed by this section shall include a duty
to allow all contracts of insurance, receipts for premiums, and other relevant documents
in the possession or power of the person on whom the duty is so imposed to be
inspected and copies thereof to be taken.
24
Settlement 153. (1) No settlement made by an insurer in respect of any claim which might be
between made by a third party in respect of any liability of the nature referred to in clause (b) of
insurers and
insured sub-section (1) of section 147 shall be valid unless such third party is a party to the
persons. settlement.
(2) The Claims Tribunal shall ensure that the settlement is bona fide and was not 5
made under undue influence and the compensation is made in accordance with the
payment schedule referred to in sub-section (1) of section 164.
(3) Where a person who is insured under a policy issued for the purpose of this
Chapter has become insolvent, or where, if such insured person is a company, a
winding-up order has been made or a resolution for a voluntary winding-up has been 10
passed with respect to the company, no agreement made between the insurer and the
insured person after the liability has been incurred to a third party and after the
commencement of the insolvency or winding-up, as the case may be, nor any waiver,
assignment or other disposition made by or payment made to the insured person after
the commencement aforesaid, shall be effective to defeat the rights transferred to the 15
third party under this Chapter; but those rights shall be the same as if no such agreement,
waiver, assignment or disposition or payment has been made.
Saving in 154. (1) For the purposes of sections 151, 152 and 153, a reference to "liabilities
respect of to third parties" in relation to a person insured under any policy of insurance shall not
sections 151, include a reference to any liability of that person in the capacity of insurer under some 20
152 and 153.
other policy of insurance.
(2) The provisions of sections 151, 152 and 153 shall not apply where a company
is wound-up voluntarily merely for the purposes of reconstruction or of an amalgamation
with another company.
Effect of 155. Notwithstanding anything contained in section 306 of the Indian Succession 25
death on Act, 1925, the death of a person in whose favour a certificate of insurance had been 39 of 1925.
certain causes issued, if it occurs after the happening of an event which has given rise to a claim
of action.
under the provisions of this Chapter, shall not be a bar to the survival of any cause of
action arising out of such event against his estate or against the insurer.
Effect of 156. When an insurer has issued a certificate of insurance in respect of a contract 30
certificate of of insurance between the insurer and the insured person, then
insurance.
(a) if and so long as the policy described in the certificate has not been
issued by the insurer to the insured, the insurer shall, as between himself and
any other person except the insured, be deemed to have issued to the insured
person a policy of insurance conforming in all respects with the description and 35
particulars stated in such certificate; and
(b) if the insurer has issued to the insured the policy described in the
certificate, but the actual terms of the policy are less favourable to persons
claiming under or by virtue of the policy against the insurer either directly or
through the insured then the particulars of the policy as stated in the certificate, 40
the policy shall, as between the insurer and any other person except the insured,
be deemed to be in terms conforming in all respects with the particulars stated in
the said certificate.
Transfer of 157. (1) Where a person, in whose favour the certificate of insurance has been
certificate of issued in accordance with the provisions of this Chapter, transfers to another person 45
insurance. the ownership of the motor vehicle in respect of which such insurance was taken
together with the policy of insurance relating thereto, the certificate of insurance and
the policy described in the certificate shall be deemed to have been transferred in
favour of the person to whom the motor vehicle is transferred with effect from the date
of its transfer. 50
25
Explanation.For the removal of doubts, it is herby clarified that such deemed

transfer shall include transfer of rights and liabilities of the said certificate of insurance
and policy of insurance.
(2) The transferee shall apply within fourteen days from the date of transfer in
5 the prescribed form to the insurer for making necessary changes in regard to the fact of
transfer in the certificate of insurance and the policy described in the certificate in his
favour, and the insurer shall make the necessary changes in the certificate and the
policy of insurance in regard to the transfer of insurance.
158. (1) Any person driving a motor vehicle in any public place shall, on being Production of
10 so required by a police officer in uniform authorised in this behalf by the State certain
certificates,
Government, produce licence and
(a) the certificate of insurance; permit in
certain cases.
(b) the certificate of registration;
(c) the pollution under control certificate;
15 (d) the driving licence;
(e) in the case of a transport vehicle, also the certificate of fitness referred
to in section 56, and the permit; and
(f) any certificate or authorisation of exemption that has been granted
under this Act,
20 relating to the use of the vehicle.
(2) Where, owing to the presence of a motor vehicle in a public place, an accident
occurs involving death or bodily injury to another person, if the driver of the vehicle
does not at that time produce the required certificate, driving licence and permit referred
to in sub-section (1) to a police officer, he or the owner shall produce the said certificates,
25 licence and permit at the police station at which the driver makes the report required by
section 134.
(3) No person shall be liable to conviction for offences under sub-section (1) or
sub-section (2) by reason of the failure to produce the required certificate if, within
seven days from the date on which its production was required under sub-section (1),
30 or as the case may be, from the date of occurrence of the accident, he produces the
certificate at such police station as may have been specified by him to the police officer
who required its production or, as the case may be, to the police officer at the site of the
accident or to the officer-in-charge of the police station at which he reported the
accident:
35 Provided that except to such extent and with such modifications as may be
prescribed, the provisions of this sub-section shall not apply to the driver of a transport
vehicle.
(4) The owner of a motor vehicle shall give such information as he may be
required by or on behalf of a police officer empowered in this behalf by the State
40 Government for the purpose of determining whether the vehicle was or was not being
driven in contravention of section 146 and on any occasion when the driver was
required under this section to produce the certificate of insurance.
(5) In this section, the expression "produce the certificate of insurance" means
produce for examination the relevant certificate of insurance or such other evidence as
may be prescribed that the vehicle was not being driven in contravention of section
45 146.
159. The police officer shall, during the investigation, prepare an accident Information
information report to facilitate the settlement of claim in such form and manner, within to be given
regarding
three months and containing such particulars and submit the same to the Claims accident.
Tribunal and such other agency as may be prescribed.
26
Duty to 160. A registering authority or the officer-in-charge of a police station shall, if so

furnish required by a person who alleges that he is entitled to claim compensation in respect of
particulars of
vehicle
an accident arising out of the use of a motor vehicle, or if so required by an insurer
involved in against whom a claim has been made in respect of any motor vehicle, furnish to that
accident. person or to that insurer, as the case may be, on payment of the prescribed fee, any 5
information at the disposal of the said authority or the said police officer relating to the
identification marks and other particulars of the vehicle and the name and address of
the person who was using the vehicle at the time of the accident or was injured by it
and the property, if any, damaged in such form and within such time as the Central
Government may prescribe. 10
Special 161. (1) Notwithstanding anything contained in any other law for the time being
provisions as in force or any instrument having the force of law, the Central Government shall provide
to for paying in accordance with the provisions of this Act and the scheme made under
compensation
sub-section (3), compensation in respect of the death of, or grievous hurt to, persons
in case of hit
and run motor resulting from hit and run motor accidents. 15
accident.
(2) Subject to the provisions of this Act and the scheme made under
sub-section (3), there shall be paid as compensation,
(a) in respect of the death of any person resulting from a hit and run motor
accident, a fixed sum of two lakh rupees or such higher amount as may be
prescribed by the Central Government; 20
(b) in respect of grievous hurt to any person resulting from a hit and run
motor accident, a fixed sum of fifty thousand rupees or such higher amount as
may be prescribed by the Central Government.
(3) The Central Government may, by notification in the Official Gazette, make a
scheme specifying the manner in which the scheme shall be administered by the 25
Central Government or General Insurance Council, the form, manner and the time
within which applications for compensation may be made, the officers or authorities to
whom such applications may be made, the procedure to be followed by such officers
or authorities for considering and passing orders on such applications, and all other
matters connected with, or incidental to, the administration of the scheme and the 30
payment of compensation under this section.
(4) A scheme made under sub-section (3) may provide that,
(a) a payment of such sum as may be prescribed by the Central Government
as interim relief to any claimant under such scheme;
(b) a contravention of any provision thereof shall be punishable with 35
imprisonment which may extend to two years, or with fine which shall not be less
than twenty-five thousand rupees but may extend to five lakh rupees or with
both;
(c) the powers, functions or duties conferred or imposed on any officer or
authority by such scheme may be delegated with the prior approval in writing of 40
Central Government, by such officer or authority to any other officer or authority;
Scheme for 162. (1) Notwithstanding anything contained in the General Insurance Companies
golden hour.
(Nationalisation) Act, 1972 or any other law for the time being in force or any instrument
having the force of law, the insurance companies for the time being carrying on general
insurance business in India shall provide in accordance with the provisions of this Act 45
and the schemes made under this Act for treatment of road accident victims, including
during the golden hour.
(2) The Central Government shall make a scheme for the cashless treatment of
victims of the accident during the golden hour and such scheme may contain provisions
for creation of a fund for such treatment. 50
27
163. (1) The payment of compensation in respect of the death of, or grievous Refund in
57 of 1972. hurt to, any person under section 161 shall be subject to the condition that if any certain cases
of
compensation (hereafter in this sub-section referred to as the other compensation) or compensation
other amount in lieu of or by way of satisfaction of a claim for compensation is awarded paid under
5 or paid in respect of such death or grievous hurt under any other provision of this Act section 161.
or any other law for the time being in force or otherwise, so much of the other
compensation or other amount aforesaid as is equal to the compensation paid under
section 161, shall be refunded to the insurer.
(2) Before awarding compensation in respect of an accident involving the death
10 of, or bodily injury to, any person arising out of the use of a motor vehicle under any
provision of this Act other than section 161 or any other law for the time being in force,
the Claims Tribunal, court or other authority awarding such compensation shall verify
as to whether in respect of such death or bodily injury compensation has already been
paid under section 161 or an application for payment of compensation is pending
15 under that section, and such Tribunal, court or other authority shall
(a) if compensation has already been paid under section 161, direct the
person liable to pay the compensation awarded by it to refund to the insurer, so
much thereof as is required to be refunded in accordance with the provisions of
sub-section (1);
20 (b) if an application for payment of compensation is pending under section
161 forward the particulars as to the compensation awarded by it to the insurer.
Explanation.For the purpose of this sub-section, an application for
compensation under section 161 shall be deemed to be pending
(i) if such application has been rejected, till the date of the rejection of the
25 application; and
(ii) in any other case, till the date of payment of compensation in pursuance
of the application.
164. (1) Notwithstanding anything contained in this Act or in any other law for Special
the time being in force or instrument having the force of law, the owner of the motor provisions as
to payment of
30 vehicle or the authorised insurer shall be liable to pay in the case of death or grievous
compensation
hurt due to any accident arising out of the use of motor vehicle, a compensation, of a on structured
sum of five lakh rupees in case of death or of two and a half lakh rupees in case of formula basis.
grievous hurt to the legal heirs or the victim, as the case may be.
(2) In any claim for compensation under sub-section (1), the claimant shall not
35 be required to plead or establish that the death or grievous hurt in respect of which the
claim has been made was due to any wrongful act or neglect or default of the owner of
the vehicle or of the vehicle concerned or of any other person.
(3) Where, in respect of death or grievous hurt due to an accident arising out of
the use of motor vehicle, compensation has been paid under any other law for the time
40 being in force, such amount of compensation shall be reduced from the amount of
compensation payable under this section.
164A. (1) The Central Government, may make schemes for the provision of Scheme for
interim relief to claimants praying for compensation under this Chapter. interim relief
for claimants.
(2) A scheme made under sub-section (1) shall also provide for procedure to
45 recover funds disbursed under such scheme from the owner of the motor vehicle,
where the claim arises out of the use of such motor vehicle or other sources as may be
prescribed by the Central Government.
164B. (1) The Central Government shall constitute a Fund to be called the Motor Motor Vehicle
Vehicle Accident Fund and thereto shall be credited Accident
Fund.
50 (a) payment of a nature notified and approved by the Central Government;
(b) any grant or loan made to the Fund by the Central Government;
28
(c) the balance of the fund created under scheme framed under section
163, as it stood immediately before the commencement of the Motor Vehicles
(Amendment) Act, 2017;
(d) any other source of income as may be prescribed by the Central
Government. 5
(2) The Fund shall be constituted for the purpose of providing compulsory
insurance cover to all road users in the territory of India.
(3) The Fund shall be utilised for the following, namely:
(a) treatment of the persons injured in road accidents in accordance with
the scheme framed by the Central Government under section 162; 10
(b) compensation to representatives of a person who died in hit and run
motor accident in accordance with schemes framed under section 161;
(c) compensation to a person grievously hurt in a hit and run motor accident
in accordance with schemes framed under section 161;
(d) compensation to such persons as may be prescribed by the Central 15
Government.
(4) The maximum liability amount that shall be paid in each case shall be such as
may be prescribed by the Central Government.
(5) In all cases specified in clause (a) of sub-section (3), when the claim of such
person becomes payable, where amount has been paid out of this fund to any person, 20
the same amount shall be deductible from the claim received by such person from the
insurance company.
(6) The Fund shall be managed by such authority or agency as the Central
Government may specify having regard to the following:
(a) knowledge of insurance business of the agency; 25
(b) capability of the agency to manage funds; and
(c) any other criteria as may be prescribed by the Central Government.
(7) The Central Government shall maintain proper accounts and other relevant
records and prepare an annual statement of accounts in such form as may be prescribed
by the Central Government in consultation with the Comptroller and Auditor-General 30
of India.
(8) The accounts of the fund shall be audited by the Comptroller and Auditor-
General of India at such intervals as may be specified by him.
(9) The Comptroller and Auditor-General of India or any person appointed by
him in connection with the audit of the accounts of the fund under this Act shall have 35
the same rights, privileges and authority in connection with such audit of the
Government accounts and, in particular, shall have the right to demand the production
of books, accounts, connected vouchers and other documents and papers and to
inspect any of the offices of the Authority.
(10) The accounts of the fund, as certified by the Comptroller and Auditor- 40
General of India or any other person appointed by him in this behalf, together with the
audit report thereon, shall be forwarded annual to the Central Government and the
Central Government shall cause the same to be laid before each House of the Parliament.
(11) Any scheme framed under sub-section (3) of section 161, as it stood
immediately before the commencement of the Motor Vehicles (Amendment) Act, 2017, 45
shall be discontinued and all rights and liabilities accruing there under shall be met out
of the fund with effect from the date of commencement of this Act.
Power of 164C. (1) The Central Government may make rules for the purposes of carrying
Central into effect, the provisions of this Chapter.
Government
to make rules.
29
(2) Without prejudice to the generality of the foregoing power, such rules may
provide for
(a) the forms to be used for the purposes of this Chapter including,
(i) the form of the insurance policy and the particulars it shall contain
5 as referred to in sub-section (3) of section 147;
(ii) the form for making changes in regard to the fact of transfer in
the certificate of insurance under sub-section (2) of section 157;
(iii) the form in which the accident information report may be
prepared, the particulars it shall contain, the manner and the time for
10 submitting the report to the Claims Tribunal and the other agency under
sub-section (1) of section 159;
(iv) the form for furnishing information under section 160; and
(v) the form of the annual statement of accounts for the Motor
Vehicle Crash Fund as referred to in sub-section (7) of section 164B;
15 (b) the making of applications for and the issue of certificates of insurance;
(c) the issue of duplicates to replace certificates of insurance lost, destroyed
or mutilated;
(d) the custody, production, cancellation and surrender of certificates of
insurance;
20 (e) the records to be maintained by insurers of policies of insurance issued
under this Chapter;
(f) the identification by certificates or otherwise of persons or vehicles
exempted from the provisions of this Chapter;
(g) the furnishing of information respecting policies of insurance by
25 insurers;
(h) adopting the provisions of this Chapter to vehicles brought into India
by persons making only a temporary stay therein or to vehicles registered in a
reciprocating country and operating on any route or within any area in India by
applying those provisions with prescribed modifications;
30 (i) the requirements which a certificate of insurance is required to comply
with as referred to in clause (b) of section 145;
(j) administration of the fund established under sub-section (3) of section
146;".
(k) the minimum premium and the maximum liability of an insurer under
35 sub-section (2) of section 147;
(l) the conditions subject to which an insurance policy shall be issued and
other matters related thereto as referred to in sub-section (3) of section 147;
(m) the details of settlement, the time limit for such settlement and the
procedure thereof under sub-section (2) of section 149;
40 (n) the extent of exemptions and the modifications under the proviso to
(o) the other evidence under sub-section (5) of section 158;
(p) such other agency to which the accident information report as referred
to in section 159 may be submitted;
45 (q) the time limit and fee for furnishing information under section 160;
30
(r) the higher amount of compensation in respect of death under clause (a)
of sub-section (2) of section 161;
(s) a sum to be paid as interim relief as referred to in clause (a) of
(t) the procedure for payment of compensation under sub-section (1) of 5
section 164;
(u) such other sources from which funds may be recovered for the scheme
as referred to in section 164A;
(v) any other source of income that may be credited into the Motor Vehicle
Crash Fund under sub-section (1) of section 164B; 10
(w) the persons to whom compensation may be paid under clause (d) of
sub-section (3) of section 164B;
(x) the maximum liability amount under sub-section (4) of section 164B;
(y) the other criteria under clause (c) of sub-section (6) of section 164B;
(z) any other matter which is to be or may be prescribed or in respect of 15
which provision is to be made by rules.
Power of State 164D. (1) The State Government may make rules for the purposes of carrying
Government
to make rules.
into effect, the provisions of this Chapter other than the matters specified in section
164C.
(2) Without prejudice to the generality of the foregoing power, such rules may 20
provide for
(a) the other authority under sub-section (5) of section 147.".
Amendment 51. In section 165 of the principal Act, in the Explanation, for the words, figures and
of section
165.
letter "section 140 and section 163A", the word and figures "section 164" shall be
substituted. 25
Amendment
of section
166. (i) in sub-section (1), after the proviso, the following proviso shall be inserted,
namely:
"Provided further that where a person accepts compensation under section 164
in accordance with the procedure provided under section 149, his claims petition 30
before the Claims Tribunal shall lapse.".
(i) in sub-section (2), the proviso shall be omitted;
"(3) No application for compensation shall be entertained unless it is made
within six months of the occurrence of the accident.". 35
(ii) in sub-section (4), for the words, brackets and figures "sub-section (6) of
section 158", the word and figures "section 159" shall be substituted;
"(5) Notwithstanding anything in this Act or any other law for the time
being in force, the right of a person to claim compensation for injury in an 40
accident shall, upon the death of the person injured, survive to his legal
representatives, irrespective of whether the cause of death is relatable to or had
any nexus with the injury or not.".
31
53. In section 168 of the principal Act, in sub-section (1), Amendment of

section 168.
(i) for the word and figures "section 162", the word and figure "section 163"
(ii) the proviso shall be omitted.
5 54. In section 169 of the principal Act, after sub-section (3), the following sub-section Amendment of
shall be inserted, namely: section 169.
"(4) For the purpose of enforcement of its award, the Claims Tribunal shall also
have all the powers of a Civil Court in the execution of a decree under the Code of Civil
Procedure, 1908, as if the award were a decree for the payment of money passed by
10 such court in a civil suit.".
55. In section 170 of the principal Act, for the word and figures "section 149"the word Amendment of
section 170.
and figures " section 150" shall be substituted.
56. In section 173 of the principal Act, in sub-section (2), for the words "ten thousand", Amendment
the words "one lakh" shall be substituted. of section
173.
15 57. In section 177 of the principal Act, for the words "one hundred rupees "and"three Amendment of
section 177.
5 of 1908. hundred rupees ", the words "five hundred rupees "and"one thousand and five hundred
rupees " shall respectively be substituted.
section 177A.
namely:
20 "177A. Whoever contravenes the regulations made under section 118, shall be Penalty for
contravention
punishable with fine which shall not be less than five hundred rupees, but may extend
of Regulations
to one thousand rupees.". under section
118.
59. In section 178 of the principal Act, in sub-section (3), for the words "two hundred Amendment
rupees ", the words "five hundred rupees " shall be substituted. of section 178.

of section
(i) in sub-section (1), for the words "five hundred rupees", the words "two 179.
thousand rupees" shall be substituted;
(ii) in sub-section (2), for the words "five hundred rupees ", the words "two
thousand rupees" shall be substituted.
30 61. In section 180 of the principal Act, for the words "which may extend to one thousand Amendment
rupees", the words "of five thousand rupees " shall be substituted. of section
180.
62. In section 181 of the principal Act, for the words "which may extend to five Amendment
hundred rupees", the words "of five thousand rupees " shall be substituted. of section
181.
63. In section 182 of the principal Act, Amendment of
section 182.
35 (i) in sub-section (1), for the words "which may extend to five hundred rupees ",
the words "of ten thousand rupees " shall be substituted;
(ii) in sub-section (2), for the words "one hundred rupees ", the words "ten
thousand rupees " shall be substituted.
64. For section 182A of the principal Act, the following sections shall be substituted, Substitution
40 of new
namely: sections for
section 182A.
32
Punishment "182A. (1) Whoever, being a manufacturer, importer or dealer of motor vehicles,
for offences sells or delivers or alters or offers to sell or deliver or alters, a motor vehicle that is in
relating to
construction, contravention of the provisions of Chapter VII or the rules and regulations made
maintenance, thereunder, shall be punishable with imprisonment for a term which may extend to one
sale and year, or with fine of one lakh rupees per such motor vehicle or with both: 5
alteration of
motor Provided that no person shall be convicted under this section if he proves that,
vehicles anc
components at the time of sale or delivery or alteration or offer of sale or delivery or alteration of
such motor vehicle, he had disclosed to the other party of the manner in which such
motor vehicle was in contravention of the provisions of Chapter VII or the rules and
regulations made thereunder. 10
(2) Whoever, being a manufacturer of motor vehicles, fails to comply with the
provisions of Chapter VII or the rules and regulations made thereunder, shall be
punishable with imprisonment for a term which may extend to one year or with fine
which may extend one hundred crore rupees or with both.
(3) Whoever, sells or offers to sell, or permits the sale of any component of a 15
motor vehicle which has been notified as a critical safety component by the Central
Government and which does not comply with Chapter VII or the rules and regulations
made thereunder shall be punishable with imprisonment for a term which may extend to
one year or with fine of one lakh rupees per such component or with both.
(4) Whoever, being the owner of a motor vehicle, alters a motor vehicle, including 20
by way of retrofitting of motor vehicle parts, in a manner not permitted under the Act
or the rules and regulations made thereunder shall be punishable with imprisonment
for a term which may extend to six months, or with fine of five thousand rupees per
such alteration or with both.
Punishment 182B. Whoever contravenes the provisions of the section 62A, shall be 25
for punishable with fine which shall not be less than five thousand rupees, but may extend
contravention
of section to ten thousand rupees.".
62A.

of section
183.
(i) in sub-section (1),
(a) after the words "Whoever drives", the words "or causes any person 30
who is employed by him or subjects someone under his control to drive" shall be
inserted;
(b) for the words "with fine which extend to four hundred rupees, or, if
having been previously convicted of an offence under this sub-section is again
convicted of an offence under this sub-section, with fine which may extend to 35
one thousand rupees", the following shall be substituted, namely:
"in the following manner, namely:
(i) where such motor vehicle is a light motor vehicle with fine
which shall not be less than one thousand rupees but may extend to
two thousand rupees; 40
(ii) where such motor vehicle is a medium goods vehicle or a

medium passenger vehicle or a heavy goods vehicle or a heavy
passenger vehicle with fine which shall not be less than two
thousand rupees, but may extend to four thousand rupees; and
(iii) for the second or any subsequent offence under this 45
sub-section the driving licence of such driver shall be impounded
as per the provisions of sub-section (4) of section 206.".
33
(ii) sub-section (2) shall be omitted.

(iii) in sub-section (3), after the word "mechanical", the words "or electronic"
shall be inserted.
(iv) in sub-section (4), for the words, brackets and figure "sub-section (2)", the
5 words, brackets and figure "sub-section (1)" shall be substituted.
of section
(i) after the words "dangerous to the public", the words "or which causes a 184.
sense of alarm or distress to the occupants of the vehicle, other road users, and
persons near roads," shall be inserted;
10 (ii) for the words "which may extend to six months or with fine which may extend
to one thousand rupees", the words "which may extend to one year but shall not be
less than six months or with fine which shall not be less than one thousand rupees but
may extend to five thousand rupees, or with both" shall be substituted;
(iii) for the words "which may extend to two thousand rupees", the words "of
15 ten thousand rupees" shall be substituted;
(iv) the following Explanation shall be inserted, namely:
"Explanation.For the purpose of this section,
(a) jumping a red light;
(b) violating a stop sign;
20 (c) use of handheld communications devices while driving;
(d) passing or overtaking other vehicles in a manner contrary to law;
(e) driving against the authorised flow of traffic; or
(f) driving in any manner that falls far below what would be expected
of a competent and careful driver and where it would be obvious to a
25 competent and careful driver that driving in that manner would be
dangerous,
shall amount to driving in such manner which is dangerous to public.".
of section
(i) in clause (a), after the words "breath analyser,", the words "or in any another 185.
30 test including a laboratory test," shall be inserted;
(ii) for the words "which may extend to two thousand rupees ", the words "of
ten thousand rupees " shall be substituted;
(iii) the words "if committed within three years of the commission of the previous
similar offence," shall be omitted;
35 (iv) for the words "which may extend to three thousand rupees ", the words "of
fifteen thousand rupees " shall be substituted;
(v) for the Explanation, the following Explanation shall be substituted, namely:
"Explanation.For the purposes of this section, the
expression"drug"means any intoxicant other than alcohol, natural or synthetic,
40 or any natural material or any salt, or preparation of such substance or material
as may be notified by the Central Government under this Act and includes a
narcotic drug and psychotropic substance as defined in clause (xiv) and clause
(xxiii) of section 2 of the Narcotic Drugs and Psychotropic Substances Act,
61 of 1985. 1985.".
34
Amendment of 68. In section 186 of the principal Act, for the words "two hundred rupees "and"five
section 186.
hundred rupees ", the words "one thousand rupees "and"two thousand rupees " shall
respectively be substituted.
section 187.
(i) for the brackets and letter "(c)"the brackets and letter "(a)" shall be substituted; 5
(ii) for the words "three months", the words " six months " shall be substituted;
(iii) for the words "which may extend to five hundred rupees", the words "of five
thousand rupees" shall be substituted;
(iv) for the words " six months ", the words "one year" shall be substituted; and
(v) for the words "which may extend to one thousand rupees", the words "of ten 10
thousand rupees" shall be substituted.
section 189.
(i) for the words "one month", the words "three months" shall be substituted;
(ii) for the words "which may extend to five hundred rupees", the words "of five
thousand rupees" shall be substituted; 15
(iii) after the words "with both", the words", and for a subsequent offence shall
be punishable with imprisonment for a term which may extend to one year, or with fine
of ten thousand rupees; or with both." shall be inserted.
section 190.
(i) in sub-section (1), 20
(a) for the words "which may extend to two hundred and fifty rupees" the
words "of one thousand five hundred rupees" shall be substituted;
(b) for the words "which may extend to one thousand rupees" the words
"of five thousand rupees" shall be substituted; and
(c) after the words "with both", the words, and for a subsequent offence 25
shall be punishable with imprisonment for a term which may extend to six months,
or with a fine of ten thousand rupees for bodily injury or damage to property"
shall be inserted.
(a) for the words "a fine of one thousand rupees", the words "imprisonment 30
for a term which may extend to three months, or with fine which may extend to
ten thousand rupees or with both and he shall be disqualified for holding licence
for a period of three months" shall be substituted; and
(b) for the words "a fine of two thousand rupees", the words "imprisonment
for a term which may extend to six months, or with fine which may extend to ten 35
thousand rupees or with both" shall be substituted; and
(a) for the words "which may extend to three thousand rupees", the words
"of ten thousand rupees and he shall be disqualified for holding licence for a
period of three months" shall be substituted; and 40
(b) for the words "which may extend to five thousand rupees", the words
"of twenty thousand rupees" shall be substituted;
35
72. Section 191 of the principal Act shall be omitted. Omission of

section 191.
73. In section 192 of the principal Act, the following Explanation shall be inserted, Amendment
namely: of section
192.
"Explanation.Use of a motor vehicle in contravention of the provisions of
5 section 56 shall be deemed to be a contravention of the provisions of section 39 and
shall be punishable in the same manner as provided in sub-section (1).".
74. In section 192A of the principal Act, in sub-section (1), Amendment
of section
(i) after the words "for the first offence with", the words "imprisonment for a 192A.
term which may extend to six months and" shall be inserted;
10 (ii) for the words "which may extend to five thousand rupees but shall not be
less than two thousand rupees", the words "of ten thousand rupees" shall be
substituted;
(iii) for the words "three months", the words "six months" shall be substituted;
(iv) for the words "which may extend to ten thousand rupees but shall not be
15 less than five thousand rupees", the words "of ten thousand rupees" shall be
substituted.
75. After section 192A in the principal Act, the following section shall be inserted, Insertion of
namely: new section
192B.
"192B. (1) Whoever, being the owner of a motor vehicle, fails to make an Offences
20 application for registration of such motor vehicle under sub-section (1) of section 41 relating to
shall be punishable with fine of five times the annual road tax or one-third of the registration.
lifetime tax of the motor vehicle whichever is higher.
(2) Whoever, being a dealer, fails to make an application for the registration of a
new motor vehicle under the second proviso to sub-section (1) of section 41 shall be
25 punishable with fine of fifteen times the annual road tax or the lifetime tax of the motor
vehicle whichever is higher.
(3) Whoever, being the owner of a motor vehicle, obtains a certificate of
registration for such vehicle on the basis of documents which were, or by representation
of facts which was, false in any material particular, or the engine number or the chassis
30 number embossed thereon are different from such number entered in the certificate of
registration shall be punishable with fine of ten times the annual road tax or two-third
of the lifetime tax of the motor vehicle whichever is higher with imprisonment for a term
which shall not be less than six months but may extend to one year.
(4) Whoever, being a dealer, obtains a certificate of registration for such vehicle
35 on the basis of documents which were, or by representation of facts which was, false
in any material particular, or the engine number or the chassis number embossed
thereon are different from such number entered in the certificate of registration shall be
punishable with imprisonment for a term which shall not be less than six months but
may extend to one year and shall also be liable to fine equal to ten times the amount of
40 annual road tax or two-third the lifetime tax of the motor vehicle.".
76. In the principal Act, Amendment of
section 193.
(A) in section 193, in the marginal heading, for the words "agents and canvassers",
the words "agents, canvassers and aggregators" shall be substituted;
(B) section 193 shall be numbered as sub-section (1) thereof, and
45 (i) in sub-section (1) as so numbered,
(a) for the words "which may extend to one thousand rupees", the
words "of one thousand rupees" shall be substituted;
36
(b) for the words "which may extend to two thousand rupees", the
words "of two thousand rupees" shall be substituted;
(ii) after sub-section (1) as so numbered, the following sub-sections shall
be inserted, namely:
"(2) Whoever engages himself as an aggregator in contravention of 5
the provisions of section 93 or of any rules made thereunder shall be
punishable with fine up to one lakh rupees but shall not be less than
twenty-five thousand rupees.
(3) Whoever, while operating as an aggregator contravenes a
condition of the licence granted under sub-section (4) of section 93, not 10
designated by the State Government as a material condition, shall be
punishable with fine of five thousand rupees.".
Amendment
of section 77. In section 194 of the principal Act,
194. (i) in sub-section (1),
(a) the word "minimum" shall be omitted; 15
(b) for the words "of two thousand rupees and an additional amount of
one thousand rupees per tonne of excess load", the words "of twenty thousand
rupees and an additional amount of two thousand rupees per tonne of excess
load" shall be substituted;
(c) the following proviso shall be inserted, namely: 20
"Provided that such motor vehicle shall not be allowed to move

before such excess load is removed or is caused or allowed to be removed
by the person in control of such motor vehicle.".
"(1A) Whoever drives a motor vehicle or causes or allows a motor vehicle 25
to be driven when such motor vehicle is loaded in such a manner that the load or
any part thereof or anything extends laterally beyond the side of the body or to
the front or to the rear or in height beyond the permissible limit shall be punishable
with a fine of twenty thousand rupees, together with the liability to pay charges
for off-loading of such load: 30
Provided that such motor vehicle shall not be allowed to move before
such load is arranged in a manner such that there is no extension of the load
laterally beyond the side of the body or to the front or to the rear or in height
beyond the permissible limit:
Provided further that nothing in this sub-section shall apply when such 35
motor vehicle has been given an exemption by the competent authority authorised
in this behalf, by the State Government or the Central Government, allowing the
carriage of a particular load.".
(iii) in sub-section (2), for the words, "which may extend to three thousand
rupees" the words "of forty thousand rupees" shall be substituted. 40
Insertion of 78. After section 194 in the principal Act, the following sections shall be inserted,
new sections
194A, 194B,
namely:
194C, 194D,
194E and
194F.
Carriage of "194A. Whoever drives a transport vehicle or causes or allows a transport
excess vehicle to be driven while carrying more passengers than is authorised in the
passengers.
registration certificate of such transport vehicle or the permit conditions applicable 45
to such transport vehicle shall be punishable with a fine of two hundred rupees per
excess passenger:
37
Provided that such transport vehicle shall not be allowed to move before the
excess passengers are off-loaded and an alternative transport is arranged for such
passengers.
194B. (1) Whoever drives a motor vehicle without wearing a safety belt or carries Use of safety
5 passengers not wearing seat belts shall be punishable with a fine of one thousand belts and the
seating of
rupees: children.
Provided that the State Government, may by notification in the Official Gazette,
exclude the application of this sub-section to transport vehicles allowed carrying
standing passengers or other specified classes of transport vehicles.
10 (2) Whoever drives a motor vehicle or causes or allows a motor vehicle to be
driven with a child who, not having attained the age of fourteen years, is not secured
by a safety belt or a child restraint system shall be punishable with a fine of one
thousand rupees.
194C. Whoever drives a motor cycle or causes or allows a motor cycle to be Penalty for
driven in contravention of the provisions of section 128 or the rules or regulations violation of
15
safety
made thereunder shall be punishable with a fine of one thousand rupees and he shall measures for
be disqualified for holding licence for a period of three months. motor cycle
drivers and
pillion riders.
194D. Whoever drives a motor cycle or causes or allows a motor cycle to be Penalty for
driven in contravention of the provisions of section 129 or the rules or regulations not wearing
protective
20 made thereunder shall be punishable with a fine of one thousand rupees and he shall headgear.
be disqualified for holding licence for a period of three months.
194E. Whoever while driving a motor vehicle fails to draw to the side of the road, Failure to
on the approach of a fire service vehicle or of an ambulance or other emergency vehicle allow free
passage to
as may be specified by the State Government, shall be punishable with imprisonment emergency
25 for a term which may extend to six months, or with a fine of ten thousand rupees or with vehicles.
both.
194F. Whoever Use of horns
and silence
(a) while driving a motor vehicle zones.
(i) sounds the horn needlessly or continuously or more than
30 necessary to ensure safety, or
(ii) sounds the horn in an area with a traffic sign prohibiting the use
of a horn, or
(b) drives a motor vehicle which makes use of a cut-out by which exhaust
gases are released other than through the silencer,
35 shall be punishable with a fine of one thousand rupees and for a second or subsequent
offence with a fine of two thousand rupees.".
79. Section 195 of the principal Act shall be omitted. Omission of
section 195.

of section
(i) after the word "shall be punishable", the words "for the first offence" shall be 196.
40 inserted;
(ii) for the words "which may extend to one thousand rupees", the words "of
two thousand rupees," shall be substituted; and
(iii) after the words "with both", the words", and for a subsequent offence shall
be punishable with imprisonment for a term which may extend to three months, or with
45 fine of four thousand rupees, or with both." shall be inserted.
38

of section
197. (i) in sub-section (1), for the words "which may extend to five hundred rupees ",
the words "of five thousand rupees " shall be substituted;
(ii) in sub-section (2), for the words "which may extend to five hundred rupees
"the words "of five thousand rupees " shall be substituted. 5
Amendment 82. In section 198 of the principal Act, for the words "with fine which may extend to
of section
198. one hundred rupees ", the words "with fine of one thousand rupees " shall be substituted.
Failure to 83. After section 198 of the principal act, the following section shall be inserted,
comply with
standards for namely:
road design,
construction '198A. (1) Any designated authority, contractor, consultant or concessionaire 10
and responsible for the design or construction or maintenance of the safety standards of
maintenance the road shall follow such design, construction and maintenane standards, as may be
prescribed by the Central Government from time to time.
(2) Where failure on the part of the designated authority, contractor, consultant or
concessionaire responsible under sub-section (1) to comply with standards for road design, 15
construction and maintenance, results in death or disability, such authority or contractor or
consessionaire shall be punishable with a fine which may extend to one lakh rupees and the
same shall be paid to the Fund constituted under section 164B.
(3) For the purposes of sub section (2), the court shall in particular have regard to the
following matters namely: 20
(a) the characteristics of the road, and the nature and type of traffic which was
resonably expected to use it as per the design of road;
(b) the standard of maintenance norms applicable for a road of that character and
use by such traffic;
(c) the state of repair in which road users would have expected to find the road; 25
(d) whether the designated authority responsible for the maintenance of the
road knew, or could reasonably have been expected to know, that the condition of the
part of the road to which the action relates was likely to cause dangaer to the road users;
(e) whether the designated authority responsible for the maintenance of the
road could not reasonably have been expected to repair that part of the road before the 30
cause of action arose;
(f) whether adequate warning notices through road signs, of its condition had
been displayed; and
(g) such other matters as may be prescribed by the Central Government.
Explanation. For the pruposes of this section , the term "contractor" shall include 35
sub-contractors and all such persons who are responsible for any stage in the design,
construction, and maintenance of a stretch of road."
new section namely:
199A.
Offences by "199A. (1) Where an offence under this Act has been committed by a juvenile, 40
Juveniles. the guardian of such juvenile or the owner of the motor vehicle shall be deemed to be
guilty of the contravention and shall be liable to be proceeded against and punished
accordingly:
39
Provided that nothing in this sub-section shall render such guardian or owner
liable to any punishment provided in this Act, if he proves that the offence was
committed without his knowledge or that he exercised all due diligence to prevent the
commission of such offence.
5 Explanation.For the purposes of this section, the Court shall presume that
the use of the motor vehicle by the juvenile was with the consent of the guardian of
such juvenile or the owner of the motor vehicle, as the case may be.
(2) In addition to the penalty under sub-section (1), such guardian or owner
shall be punishable with imprisonment for a term which may extend to three years and
10 with a fine of twenty-five thousand rupees.
(3) The provisions of sub-section (1) and sub-section (2) shall not apply to such
guardian or owner if the juvenile committing the offence had been granted a learner's
licence under section 8 or a driving licence and was operating a motor vehicle which
such juvenile was licensed to operate.
15 (4) Where an offence under this Act has been committed by a juvenile, the
registration of the motor vehicle used in the commission of the offence shall be cancelled
for a period of twelve months.
(5) Where an offence under this Act has been committed by a juvenile, then
notwithstanding section 4 or section 7, such juvenile shall not be eligible to be granted
20 a driving licence under section 9 or a learner's licence under section 8 until such
juvenile has attained the age of twenty-five years.
(6) Where an offence under this Act has been committed by a juvenile, then
such juvenile shall be eligible to be punished by fines as provided in the Act while any
custodial sentence may be modified as per the provisions of the Juvenile Justice
25 Act, 2000.".
199B. the fines provided in this Act shall increase by such amount not exceeding Revision of
ten per cent in value of the existing fines, on an annual basis on 1st day of April of each fines.
year from the date of commencement of the Motor Vehicles (Amendment) Act, 2017, as
may be notified by the Central Government.".
Amendment
30 85. In section 200 of the principal Act, of section
200.
(a) for the words, figures and brackets "punishable under section 177,
section 178, section 179, section 180, section 181, section 182, sub-section (1) or
sub-section (2) of section 183, section 184, section 186, section 189, sub-
35 section (2) of section 190, section 191, section 192, section 194, section 196, or
section 198,", the words, brackets, figures and letters "punishable under
section 177, section 178, section 179, section 180, section 181, section 182,
sub-section (1) or sub-section (3) or sub-section (4) of section 182A,
section 182B, sub-section (1) or sub-section (2) of section 183, section 184 only
40 to the extent of use of handheld communication devices, section 186,
section 189, sub-section (2) of section 190, section 192, section 192A,
section 194, section 194A, section 194B, section 194C, section 194D,
section 194E, section 194F, section 196, section 198, shall be inserted;
(b) the following proviso shall be inserted, namely:
45 "Provided that the State Government may, in addition to such
amount, require the offender to undertake a period of community service.".
(ii) after sub-section (2) the following provisos shall be inserted, namely:
"Provided that, notwithstanding compounding under this section, such
40
offence shall be deemed to be a previous commission of the same offence for the
purpose of determining whether a subsequent offence has been committed:
Provided further that compounding of an offence will not discharge the
offender from proceedings under sub-section (4) of section 206 or the obligation
to complete a driver refresher training course, or the obligation to complete 5
community service, if applicable.".
Amendment
of section
201.
(a) the word "disabled" shall be omitted;
(b) for the words "fifty rupees per hour", the words "five hundred rupees", 10
(ii) in proviso to sub-section (1), for the words "Government Agency, towing
charges", the words "an agency authorised by the Central Government or State
Government, removal charges" shall be substituted.
(iii) after sub-section (2), the following sub-section shall be inserted, namely: 15
"(3) Sub-section (1) shall not apply where the motor vehicle has suffered
an unforeseen breakdown and is in the process of being removed.".
(iv) after sub-section (3) the following Explanation shall be inserted, namely:
"Explanation.For the purposes of this section, "removal charges
"includes any costs involved in the removal of the motor vehicle from one 20
location to another, including by way of towing and also includes any costs
related to storage of such motor vehicle.".
Amendment of 87. In section 206 of the principal Act, after sub-section (3) the following sub-section
section 206. shall be inserted, namely:
"(4) A police officer or other person authorised in this behalf by the State 25
Government shall, if he has reason to believe that the driver of a motor vehicle has
committed an offence under any of sections 183, 184, 185, 189, 190, 194C, 194D, or 194E,
seize the driving licence held by such driver and forward it to the licensing authority
for disqualification or revocation proceedings under section 19:
Provided that the person seizing the licence shall give to the person surrendering 30
the licence a temporary acknowledgement therefor but such acknowledgement shall
not authorise the holder to drive until the licence has been returned to him.".
Insertion of 88. After section 210 of the principal Act, the following sections shall inserted, namely:
new sections
210A and
210B.
Power of the "210A. Subject to conditions made by the Central Government, a State 35
State Government, shall, by notification in the Official Gazette, specify a multiplier, not less
Government than one and not greater than ten, to be applied to each fine under this Act and such
to increase
penalties. modified fine, shall be in force in such State and different multipliers may be applied to
different classes of motor vehicles as may be classified by the State Government for
the purpose of this section. 40
Penalty for 210B. Any authority that is empowered to enforce the provisions of this Act
offence shall, if such authority commits an offence under this Act, shall be liable for twice the
committed by
an enforcing
penalty corresponding to that offence under this Act.
authority.
41
"210C. The Central Government may make rules for Power of

Central
(a) design, construction and maintenance standards for National highways; Government
to make rules.
(b) such other factors as may be taken into account by the Court under
sub-section (3) of section 198A;
5 (c) any other matter which is, or has to be, prescribed by the Central
Government.
210D. The State Government may make rules for design, construction and Power of
maintenance standards for roads other than national highways, and for any other State
Government
matter which is, or may be, prescribed by the State Government.". to make rules.
10 89. After section 211 of the principal Act, the following section shall be inserted, Insertion of new
namely: section 211A.
"211A. (1) Where any provision of this Act or the rules and regulations made Use of
thereunder provides for electronic
forms and
(a) the filing of any form, application or any other document with any documents.
15 office, authority, body or agency owned or controlled by the Central Government
or the State Government in a particular manner;
(b) the issue or grant of any licence, permit, sanction, approval or
endorsement, by whatever name called in a particular manner;
(c) the receipt or payment of money in a particular manner,
20 then notwithstanding anything contained in such provision, such requirement shall
be deemed to have been satisfied if such filing, issue, grant, receipt or payment, as the
case may be, is effected by means of such electronic form as may be prescribed by the
Central Government or the State Government, as the case may be.
(2) The Central Government or the State Government shall, for the purpose of
25 sub-section (1), prescribe
(a) the manner and format in which such electronic forms and documents
shall be filed, created or issued; and
(b) the manner or method of payment of any fee or charges for filing,
creation or issue of any electronic document under clause (a).".
Amendment
30 90. In section 212 of the principal Act, of section
(i) in sub-section (4), 212.
(a) after the words, brackets and figures "the proviso to sub-section (1) of
section 112, the words and figures" section 118" shall be inserted;
(b) for the words, brackets, figures and letter" sub-section (4) of section
35 163A", the words, figures and letter" section 164, section 177A" shall be inserted;
"(5) Every notification issued by the State Government under
section 210A shall be laid, as soon as may be after it is made, before each House
of the State Legislature where it consists of two Houses, or where such Legislature
40 consists of one House, before that House, while it is in session for a total period
of thirty days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following the
session or the successive sessions aforesaid, the House agrees or both Houses
agree, as the case may be, in making any modification in the notification or the
45 House agrees or both Houses agree, as the case may be, that the notification
should not be issued, the notification shall thereafter have effect only in such
42
modified form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that notification.".
new sections
215A, 215B
namely: 5
and 215C.
Power of the "215A. (1) Notwithstanding anything else contained in this Act the Central
Central Government shall have the power to delegate any power or functions that have been
Government
and State conferred upon it by the Act to any public servant or public authority and authorise
Government such to discharge any of its powers, functions and duties under this Act.
to delegate.
(2) Notwithstanding anything else contained in this Act the State Government 10
shall have the power to delegate any power or functions that have been conferred
upon it by the Act to any public servant or public authority and authorise such public
servant or public authority to discharge any of its powers, functions and duties under
this Act.
Power of 215B. (1) The Central Government may make rules for the purposes of carrying 15
Central into effect, the provisions of this Chapter.
Government
to make (2) Without prejudice to the generality of the foregoing power, such rules may
rules. provide for
(a) the use of electronic forms and means for the filing of documents, issue
or grant of licence, permit, sanction, approval or endorsements and the receipt or 20
payment of money as referred to in section 211A; and
(b) the minimum qualifications which the Motor Vehicles Department
officers or any class thereof shall be required to possess for appointment as
such, as referred to in sub-section (4) of section 213.
Power of 215C. (1) The State Government may make rules for the purposes of carrying into 25
State
effect, the provisions of this Chapter other than the matters specified in section 215B.
Government
to make rules (2) Without prejudice to the generality of the foregoing power, such rules may
provide for
(a) the use of electronic forms and means for the filing of documents, issue
or grant of licence, permit, sanction, approval or endorsements and the receipt or 30
payment of money as referred to in section 211A;
(b) the duties and functions of the officers of the Motor Vehicle Department
and the discharge thereof, the powers to be exercised by such officers (including
the powers exercisable by police officers under this Act) and the conditions
governing the exercise of such powers, the uniform to be worn by them, the 35
authorities to which they shall be subordinate as referred to in sub-section (3) of
section 213; and
(c) such other powers as may be exercised by officers of the Motor Vehicles
Department as referred to in clause (f) of sub-section (5) of section 213.
National Road "215D. (1) The Central Government shall, by notification in the Official Gazette, 40
Safety Board.
constitute a National Road Safety Board consisting of a Chairman, such number of
representatives from the State Governments, and such other members as it may consider
necessary and on such terms and conditions as may be prescribed by the Central
Government.
(2) The National Board shall render advice to the Central Government or State 45
Government, as the case may be, on all aspects pertaining to road safety and traffic
management including, but not limited to,
43
(a) the standards of design, weight, construction, manufacturing process,

operation and maintenance of motor vehicles and of safety equipment;
(b) the registration and licensing of motor vehicles;
(c) the formulation of standards for road safety, road infrastructure and control
5 of traffic;
(d) the facilitation of safe and sustainable utilisation of road transport ecosystem;
(e) the promotion of new vehicle technology;
(f) the safety of vulnerable road users;
(g) programmes for educating and sensitizing drivers and other road users; and
10 (h) such other functions as may be presecribed by the Central Government from
time to time."
215E. The Central Government may make rules Power of
Central
(a) regarding terms and conditions of appointment of Chairman and members of Government
the National Road Safety Board under sub-section (1) of section 215D; to make rules.
15 (b) other functions of the National Road Safety Board under sub-section (2) of
section 215D;
(c) any other matter which is, or has to be, prescribed by the Central Government.
92. In the principal Act, the Second Schedule shall be omitted.". Omission of
Second
Schedule.
LOK SABHA
BILL
further to amend the Motor Vehicles Act, 1988
(As passed by Lok Sabha)
GMGIPMRND439LS(S3)10-04-2017.

Motor Vehicles Amendment Bill 2017

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AS PASSED BY LOK SABHA

Bill No. 214-C of 2016

THE MOTOR VEHICLES (AMENDMENT) BILL, 2017

AS PASSED BY LOK SABHA

Bill No. 214-C of 2016

THE MOTOR VEHICLES (AMENDMENT) BILL, 2017

(1A) "aggregator" means a digital intermediary or market place for a

(v) clause (18) shall be omitted;

7. In section 11 of the principal Act, Amendment

"(5) Notwithstanding anything contained in any other provision, where any

"(oa) all or any of the matters referred to in section 25A;;

Amendment 16. In section 41 of the principal Act,

(b) the following proviso shall be inserted, namely:

(a) such prescribed authority holds such technical qualification as

authority does not hold the technical qualification, such cancellation is

(b) be required to get such permit cancelled on being issued a licence

(i) in sub-section (2), the following proviso shall be inserted, namely:

Provided further that every aggregator shall comply with the

Amendment of 38. In section 110 of the principal Act,

(c) receiving evidence on affidavit; and

(ii) a testing agency; or

manufactured or imported for test to a testing agency for obtaining a type-approval

(b) is securely fastened to the head of the wearer by means of straps or

(d) providing for electronic monitoring and enforcement under

(5) No insurer to whom the notice referred to in sub-section (2) or sub-section

Explanation. For the purposes of this section,

(b) "Claims Tribunal" means a Claims Tribunal constituted under section 15

(d) "material fact" and "material particular" means, respectively, a fact or 20

(b) where the insured person is a company, in the event of a winding-up

Explanation.For the removal of doubts, it is herby clarified that such deemed

Duty to 160. A registering authority or the officer-in-charge of a police station shall, if so

53. In section 168 of the principal Act, in sub-section (1), Amendment of

25 60. In section 179 of the principal Act, Amendment

Amendment 65. In section 183 of the principal Act,

(ii) where such motor vehicle is a medium goods vehicle or a

(ii) sub-section (2) shall be omitted.

72. Section 191 of the principal Act shall be omitted. Omission of

"Provided that such motor vehicle shall not be allowed to move

80. In section 196 of the principal Act, Amendment

Amendment 81. In section 197 of the principal Act,

"210C. The Central Government may make rules for Power of

(a) the standards of design, weight, construction, manufacturing process,

(As passed by Lok Sabha)

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