Motor Vehicle Act 2016: Centre aims to reduce accidents by 50 per cent

Chennai: In August 2016, the Cabinet chaired by the Prime Minister Narendra Modi gave its nod to the Motor Vehicle (Amendment) Bill 2016. Union Transport Minister Nitin Gadkari called it as the biggest reforms in the road safety and transport sector.

The Bill seeks to bring about comprehensive changes in the present Motor Vehicles Act. The Central Government aimed to reduce accidents and fatalities by 50 per cent in five years as every 5 lakh road accidents reported about 1.5 lakh people lose their lives in the country in a year.

In an attempt to address road safety issues, a draft Road Transport & Safety Bill was prepared soon after BJP came to power. As many States opposed it, Union Ministry of Road Transport & Highways constituted a Group of Transport Ministers (GoM) of the States to study the vexed issues. On the basis of recommendations of the GoM and the Ministry placed the Motor Vehicle (Amendment) Bill 2016 before the Union Cabinet.

The amendments focuses on issues relating to improvement of road safety and strengthening rural transport, last mile connectivity, public transport, automation, computerisation and online services.

The Bill aims to amend 68 sections of the total 223 sections in present Motor Vehicle Act. The Bill has suggested deletion of Chapters 10 (Liability Without Fault In Certain Cases) and it would be replaced with Chapter 11 (Insurance Of Motor Vehicles Against Third Party Risks). The government claims that the chapter introduced with an intention of simplifying third party insurance claims and settlement process.