The Motor Vehicles (Amendment) Bill, 2019, which seeks to amend the Motor Vehicles Act, 1988, has been passed by the Rajya Sabha. 

Body:

Key features of the bill:

• Compensation for road accident victims: The central government will develop a scheme for cashless treatment of road accident victims during golden hour. The central government may also make a scheme for providing interim relief to claimants seeking compensation under third party insurance.
• Motor Vehicle Accident Fund: The Bill requires the central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India. The fund will be utilised for:
  • Treatment of persons injured in road accidents as per the golden hour scheme.
  • Compensation to representatives of a person who died in a hit and run accident.
  • Compensation to a person grievously hurt in a hit and run accident.
  • Compensation to any other persons as prescribed by the central government.
• This Fund will be credited through:
  • Payment of a nature notified by the central government.
  • a grant or loan made by the central government
  • balance of the Solatium Fund (existing fund under the Act to provide compensation for hit and run accidents)
  • any other source as prescribed the central government.
• Good Samaritans: The Bill defines a good samaritan as a person who renders emergency medical or non-medical assistance to a victim at the scene of an accident. The assistance must have been (i) in good faith, (ii) voluntary, and (iii) without the expectation of any reward.  Such a person will not be liable for any civil or criminal action for any injury to or death of an accident victim, caused due to their negligence in providing assistance to the victim.
• Recall of vehicles: The Bill allows the central government to order for recall of motor vehicles if a defect in the vehicle may cause damage to the environment, or the driver, or other road users. The manufacturer of the recalled vehicle will be required to: (i) reimburse the buyers for the full cost of the vehicle, or (ii) replace the defective vehicle with another vehicle with similar or better specifications.
• National Transportation Policy: The central government may develop a National Transportation Policy, in consultation with state governments. The Policy will: (i) establish a planning framework for road transport, (ii) develop a framework for grant of permits, and (iii) specify priorities for the transport system, among other things.
• Road Safety Board: The Bill provides for a National Road Safety Board, to be created by the central government through a notification. The Board will advise the central and state governments on all aspects of road safety and traffic management including.
• Offences and penalties: The Bill increases penalties for several offences under the Act.
• Taxi aggregators: The Bill defines aggregators as digital intermediaries or market places which can be used by passengers to connect with a driver for transportation purposes (taxi services). These aggregators will be issued licenses by state. Further, they must comply with the Information Technology Act, 2000.

Impact of the bill:

• The Amendment Bill is robust and rectifies several systemic issues
  • by providing for a uniform driver licensing system
  • protection of children and vulnerable road users
  • rationalising penalties
• Introducing technology in the licensing procedure.
  • A digitised, uniform and centralised driver licensing system will go a long way in ensuring ease of access, efficiency and transparency in the filtering process.
• Bill also proposes to introduce digitisation in the monitoring and enforcement of traffic laws.
  • Kerala has a city surveillance and traffic monitoring system’, and automated traffic enforcement systems to detect traffic light violations as well as speeding. The enactment of the Bill will facilitate the replication and creation of such digitised systems for all other States.
• Safety of children:
  • The Bill proposes to mandate the use of protective headgear by every person above the age of four driving, riding or being carried on a two-wheeler.
• Similarly, the Bill mandates the use of safety belts and child restraints for those less than 14 years and introduces a fine of Rs. 1,000 for the driver or guardian for the violation of the same.
• Penalties:
  • This Bill promises to rationalise the fines. For instance, the penalty for drunk driving has been increased to Rs. 10,000 for the first offence and Rs. 15,000 for the subsequent one.
• The Centre assumes a direct role in the reforms, since it will introduce guidelines that bind State governments in several areas:
  • notably in creating a framework for taxicab aggregators
  • financing insurance to treat the injured and to compensate families of the dead in hit-and-run cases
• Road design and engineering:
  • The bill provides that any contractor or consultant responsible for the design, construction, or maintenance of the safety standards of roads must follow design, construction and maintenance standards specified by the central government.
• The bill also specifies certain road design characteristics that the Courts should consider when looking at such cases.
• Road safety agencies:
  • The bill provides for a National Road Safety Board, to be created by the central government through a notification
• The bill specifies a time limit of three months to submit the accident information report.
• Settlement of claims:
  • The bill passed by Lok Sabha, provides that the insurance company can process claims on receiving information from the claimant also. Further, the insurance company must settle claims within a time limit of 30 days.
• Removal of Second Schedule:
  • The bill removes the Second Schedule to the Act. This Schedule provides for the manner of calculation of compensation for road accidents resulting in death or injury.
• The bill seeks to strengthen the Act, has attempted to address the issue of liability for road defects.
• For any road crash injury or death caused by defective road design and engineering, the designated authority responsible to construct and maintain the road is to be penalised with a sum capped at Rs.1 lakh.
• The bill aims to rectify several systemic issues by providing a uniform driver licensing system, protecting children and vulnerable road users, rationalising penalties and creating a system of accountability in the construction of roads.

Challenges:

• With a Fund already existing to provide compensation for hit and run accidents, the purpose of the new Accident Fund is unclear.
• State governments will issue licenses to taxi aggregators as per central government guidelines. Currently, state governments determine guidelines for plying of taxis. There could be cases where state taxi guidelines are at variance with the central guidelines on aggregators.
• While the penalties for contravening provisions of the proposed scheme on interim relief to accident victims are specified in the Bill, the offences that would warrant such penalties have not been specified. It may be argued that imposing penalties without knowing the nature of the offences is unreasonable.
• States also have concerns about their powers being curtailed in the Motor Vehicle (Amendment) Bill.

Way forward:

• There is a need for an accountable and professional police force then only the record of traffic fatalities is likely to change.
• State governments must prepare for an early roll-out of administrative reforms prescribed in the amended law, such as
  • Issuing learner’s licences online
  • Recording address changes through an online application
  • Electronic service delivery with set deadlines.
• To eliminate corruption, all applications should be accepted by transport departments online, rather than merely computerising them.
• Protection from harassment for good Samaritans who help accident victims is something the amended law provides, and this needs to be in place.
• There is a need to incorporate the Safe System Approach in all aspects of road design, engineering and construction. This approach takes into account the possibility of human error and ensures that the surrounding environment and infrastructure are designed to save lives.

Conclusion:

The bill has a number of forward-looking ideas, which was due for so long. Considering the features like providing enough protection to good Samaritans, this bill will go a long way in ensuring the safety norms in India, which is the prima facie of saving a life.