Cabinet Approves Amendments In Motor Vehicle Act
car&bike Team
1 min read
Apr 01, 2017, 03:42 PM
Key Highlights
- The Bill proposes Aadhaar-based verification for grant of online services
- The bill calls for 100 per cent e-governance in the transport sector
- The bill was introduced in the Lok Sabha on 9th August 2016
The Cabinet approved the Motor Vehicle (Amendment) Bill 2016 that provides for linking of driving licence and vehicle registration with Adhaar-based platform and proposes heavy penalties for traffic violations. "We have proposed an amendment in the Motor Vehicle Act where people need to have Aadhaar number to apply for driving licence and need not to visit transport offices to get a learning driving licence as it all will be online," Road Transport and Highways Minister Nitin Gadkari told reporters after the Cabinet meeting. "The Bill proposes Aadhaar-based verification for grant of online services including learners licence. This would ensure the integrity of the online services and also stop creation of duplicate licences," he said.
The move comes in wake of de-duplication of licences and registration of stolen vehicles. The government has decided to make an all-India register for driving licences and vehicles which would be available across the country. Gadkari said the Cabinet has approved various changes in the Motor Vehicle (Amendment) Bill 2016. These include 16 amendments and rejection of three suggestions made by the Parliament Standing Committee.
The three major suggestions rejected by the government include registration of vehicles by only RTO and inspection of vehicles by RTO. Once the bill is approved vehicle dealers will be authorised to issue vehicle numbers and register them through an all-India electronic register. He said the government has also proposed compulsory vehicle recall, amendments like third party insurance, relief to good Samaritans, stricter punishment and fines to traffic rule violators, etc.
The bill introduced in Parliament last year had proposed 89 clauses for amendment out of which only 57 were accepted by the Parliament Standing Committee on Transport, headed by Mukul Roy. With the Cabinet approval, now decks are cleared for the government to bring much-needed reforms in the transport and road sector, he said, adding the government may table the bill in Parliament next week.
The important aspects of the bill are 100 per cent e-governance to be brought in transport sector, the minister said, adding identity verification using Aadhaar will be used, bad roads contractor to be liable for fine, drivers will included in third part Insurance and Claims would be time bond. The bill was introduced in the Lok Sabha on August 9, 2016 and was referred to Departmental Standing Committee on Transport, Tourism and Culture, headed by Mukul Roy. The Motor Vehicle Act 1988 is a 30-year-old instrument which had not kept pace with the change of dynamics of road transport & information technology.
The bill specifically targets traffic offenders with stringent penal provisions. The bill has identified priority areas for improving road safety. Stricter penalties are proposed for high risk offences such as drunken driving, dangerous driving, overloading, non-adherence to safety norms by drivers (such as use of seat belt, helmets).
The bill provides for facilitating delivery of services to the citizens and transporters. The bill aims to provide for maximum governance with minimum government. This would help in reducing the harassment faced by the stakeholders in the RTO offices. A national data base of vehicles and driving licences would help in safety and security and avoid malpractices.
The minister said it is a largely pro-people initiative and will reform the Motor Vehicle insurance sector.
"It provides specific timelines for processing of insurance claims. A ten fold increase has been made in the amount of compensation awarded under a simplified process of claims disbursal wherein the family of an accident victim would get compensation of Rs 5 lakh as settlement within four months of the accident. Presently it takes at least four to five years for an award," he said.
In the accidental death cases arising from hit and run accidents, the bill proposes an increase of compensation to Rs 2 lakh, an eight fold increase over current.
The move comes in wake of de-duplication of licences and registration of stolen vehicles. The government has decided to make an all-India register for driving licences and vehicles which would be available across the country. Gadkari said the Cabinet has approved various changes in the Motor Vehicle (Amendment) Bill 2016. These include 16 amendments and rejection of three suggestions made by the Parliament Standing Committee.
The three major suggestions rejected by the government include registration of vehicles by only RTO and inspection of vehicles by RTO. Once the bill is approved vehicle dealers will be authorised to issue vehicle numbers and register them through an all-India electronic register. He said the government has also proposed compulsory vehicle recall, amendments like third party insurance, relief to good Samaritans, stricter punishment and fines to traffic rule violators, etc.
The bill introduced in Parliament last year had proposed 89 clauses for amendment out of which only 57 were accepted by the Parliament Standing Committee on Transport, headed by Mukul Roy. With the Cabinet approval, now decks are cleared for the government to bring much-needed reforms in the transport and road sector, he said, adding the government may table the bill in Parliament next week.
The important aspects of the bill are 100 per cent e-governance to be brought in transport sector, the minister said, adding identity verification using Aadhaar will be used, bad roads contractor to be liable for fine, drivers will included in third part Insurance and Claims would be time bond. The bill was introduced in the Lok Sabha on August 9, 2016 and was referred to Departmental Standing Committee on Transport, Tourism and Culture, headed by Mukul Roy. The Motor Vehicle Act 1988 is a 30-year-old instrument which had not kept pace with the change of dynamics of road transport & information technology.
The bill specifically targets traffic offenders with stringent penal provisions. The bill has identified priority areas for improving road safety. Stricter penalties are proposed for high risk offences such as drunken driving, dangerous driving, overloading, non-adherence to safety norms by drivers (such as use of seat belt, helmets).
The bill provides for facilitating delivery of services to the citizens and transporters. The bill aims to provide for maximum governance with minimum government. This would help in reducing the harassment faced by the stakeholders in the RTO offices. A national data base of vehicles and driving licences would help in safety and security and avoid malpractices.
The minister said it is a largely pro-people initiative and will reform the Motor Vehicle insurance sector.
"It provides specific timelines for processing of insurance claims. A ten fold increase has been made in the amount of compensation awarded under a simplified process of claims disbursal wherein the family of an accident victim would get compensation of Rs 5 lakh as settlement within four months of the accident. Presently it takes at least four to five years for an award," he said.
In the accidental death cases arising from hit and run accidents, the bill proposes an increase of compensation to Rs 2 lakh, an eight fold increase over current.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Related News
Latest Cars
Upcoming Cars
Latest News
car&bike Team | Jul 21, 2026Maruti Suzuki To Hike Prices By Up To Rs 30,000 In August 2026This marks the second price hike in three months for the company, which previously increased prices in June.1 min read
car&bike Team | Jul 21, 2026Reise Launches Traverse Adventure Touring Suit In India; Prices Start At ₹14,999Reise has introduced the Traverse Adventure Touring Suit, a premium riding gear set designed for long-distance touring and off-road adventures.1 min read
Jaiveer Mehra | Jul 21, 2026Mercedes-Maybach GLS Facelift Revealed With Updated Tech, More Powerful V8Upgrades to the Maybach GLS look to focus on improving the in-cabin experience.1 min read
car&bike Team | Jul 21, 2026Mahindra Scorpio Classic Prices Hiked By Up To Rs 40,000Mahindra has begun rolling out its latest price revision across the lineup, with the Scorpio Classic becoming up to Rs 40,000 more expensive1 min read
Janak Sorap | Jul 21, 2026Royal Enfield 350cc Bikes Manufactured Post Aug 25 To Get Free Gear Position IndicatorRoyal Enfield has resumed fitment of the Gear Position Indicator on select 350cc models manufactured after August 2025, following the resolution of a parts supply issue.1 min read
car&bike Team | Jul 21, 2026Citroen Basalt X Comfort Edition Launched At Rs 8.75 LakhThis edition comes with ‘Comfort AXS Packs’, which essentially introduces some of the top-end variant's features to lower, more accessible variants.1 min read
Shams Raza Naqvi | Jul 15, 2026Ferrari 849 Testarossa Spider Driven: Rs. 11.25 Crore Meets 1,000 bhpWe got behind the wheel of the most powerful convertible from Ferrari. What makes the 849 Testarossa Spider Special? We tell you.1 min read
Bilal Firfiray | Jul 12, 2026Tata Sierra EV Review: Reborn In The Electric AgeThe Tata Sierra EV isn’t drastically different from its ICE counterpart when it comes to design. But being the seventh electric offering from the Indian brand, it has gotten a few things right, and very few things wrong. But is it a compelling package to buy?5 mins read
Jafar Rizvi | Jul 13, 2026TVS Orbiter Long-Term Review (Report 1): Settling In Takes TimeFirst impressions weren't the strongest, but the Orbiter has made a mark in its first month in the car&bike garage.5 mins read
Seshan Vijayraghvan | Jul 7, 2026Tata Altroz Petrol DCA Long-Term Review: Intercity & Highway Driving ReportWe tested the Tata Altroz Petro DCA’s highway manners, intercity performance, and real-world fuel efficiency.1 min read
Seshan Vijayraghvan | Jun 29, 2026Renault Kiger vs Toyota Urban Cruiser Taisor: Which Underdog Deserves Your Money?Both the Kiger and the Taisor promise strong performance, solid features, comfortable cabins and everyday usability, all without breaking the bank. But which of these underrated subcompact SUVs deserves your money? Let's find out.1 min read