Motor Vehicle Act, 1988

Table of Contents

 Introduction
 An overview of Motor Vehicle Act, 1988
 Objectives of Motor Vehicle Act, 1988
 Offences covered under the Act
 Important Sections of Motor Vehicle Act, 1988
o Essential requirement of a driving licence
o Age restrictions related to driving of motor vehicles
 Responsibility of motor vehicle owners for violations of Sections 3 and 4
o Restrictions on holding driving licences
o Restriction on issuing learner’s licence for certain types of vehicles
o Necessity for registration
 Where registration should be made
 How registration should be made
 Necessity for permits
o Speed limitation
o Weight limitations and usage limitations
o Safety measures for drivers and passengers
o Use of protective headgear
o Obligation to produce a licence and registration certificate
o Responsibility of the driver when an accident causes injury to a person
o Inspection of vehicle involved in the accident
o Liability for compensation in specific situations based on the principle of no-fault
o Refund in cases of compensation paid under Section 161 of the Act of 1988
o Special provisions relating to compensation payments based on structured formula
o Application for compensation
o Claims Tribunals
 General provisions for punishment of offences
o Penalties for travelling without a pass and for the conductor’s failure to perform their
duties
o Disobedience of orders, obstruction and refusal of information
o Driving vehicles in violation of Section 3 and 4 of the Act of 1988
o Driving at high speed, etc.
o Dangerous driving
o Driving under the influence of alcohol and drugs
 Motor Vehicle Act : amendments
o Salient features of the Motor Vehicle (Amendment) Act, 2019
o Key provisions of the Motor Vehicle (Amendment) Act, 2019
o Settlement by the insurance company and procedure thereof
o Submission of special certificates, licences, and permits in certain cases
o Information to be provided about the accident
o Golden hour scheme
 o Compensation payment in cases of death or grievous hurt, etc.
o Scheme for interim relief for claimants
o Motor Vehicle Accident Fund
o Motor Vehicle Amendment, 2020
 Changes in the traffic rules under the Amendment of 2020
 Recent Supreme Court judgements on Motor Vehicle Act, 1988
o United India Insurance Co. Ltd. vs. Sunil Kumar and Anr., (2017)
 Facts of the case
 Issues involved
 Judgement of the case
o Mukund Dewangan vs. Oriental Insurance Company Limited (2017)
 Facts of the case
 Issues involved
 Judgement of the case
o Pappu Deo Yadav vs. Naresh Kumar and Ors. (2020)
 Facts of the case
 Issues involved
 Judgement of the case
o Joginder Singh vs. ICICI Lombard General Insurance (2019)
 Facts of the case
 Issues involved
 Judgement of the case
o Kirti vs. Oriental Insurance Company Limited (2021)
 Facts of the case
 Issues involved
 Judgement of the case
 Key takeaways from this case
 Penalties under the New Motor Vehicle Act, 2019
 Central Motor Vehicle Rules, 1989
 Central Motor Vehicles (Second Amendment) Rules, 2022
o Difference between the Motor Vehicles Act, 1988 and Motor Vehicles (Amendment) Act,
2019
 Central Motor Vehicles (Fifth Amendment) Rules, 2022
 Conclusion
 Frequently Asked Questions (FAQs)
o What is the minimum age limitation criteria for obtaining a two wheeler driving licence
in India?
o Which form needs to be filled in case of transfer of ownership of the vehicle?
o Under which Section is it required to present the vehicle physically before registration?
o Whether the Motor Accident Claims Tribunal is a court of record ?
o Does the Motor Vehicles Act 1988 prohibit riding without a helmet?
o What is ‘just compensation’ for the purpose of payment to victims?
o Who shall be the members of the Motor Accident Claims Tribunal?
o Who is eligible to claim compensation under the Motor Accident Claims Tribunal ?
o How shall the award of interest be calculated in relation to the amount of compensation ?
o What are the penalties for participating in a motor vehicle race or speed trial on a public
road without the State Government’s consent ?
Introduction
The Motor Vehicle Act of 1988 (hereinafter referred to as the Act of 1988) regulates all the
essential components of road transport vehicles. It took effect on July 1, 1989, covering
various laws relating to traffic laws, vehicle insurance, motor vehicle registration,
controlling permits, and penalties. For the purpose of ensuring and enhancing road safety,
the Government of India, in consultation with the State Transport Ministers, came up with
this Motor Vehicle (Amendment) Bill, 2017 to make amendments to the Motor Vehicle Act,
1988. This Bill was introduced by the Minister for Road Transport and Highways, Mr. Nitin
Gadkari, on 15 July, 2019. It dealt with the issuance of licences and permits related to
motor vehicles, established standards for motor vehicles, and imposed penalties for
violations of these provisions. The Bill became law after receiving the President’s assent
on 01 September, 2019.

There is a mandate under Section 3 of the Act of 1988 that all drivers must have a valid
driving licence, and no vehicle can be driven unless it is registered under the Motor
Vehicle Act, 1988. The Preamble of the Act aims to integrate and update motor vehicle
legislation, requiring all drivers and conductors to obtain a licence and then drive a
vehicle. Section 41(7) of the Motor Vehicles (Amendment) Act, 2019 (hereinafter referred
to as the Act of 2019) provides that a vehicle’s registration certificate is valid for a time
period of fifteen years from the date of registration and can be renewed.

An overview of Motor Vehicle Act, 1988

The Motor Vehicle Act comes within the ambit of the law of torts. The law of torts is based
on the Latin maxim ubi jus, ibi-remedium, i.e., where there is a right, there is a remedy.
This maxim brings into play the concepts of damage and compensation. At this point, the
idea of compensating and giving damages comes into action. The Motor Vehicle Act,
1988, is considered a law of welfare aiming to provide relief to those injured in an
accident. While the Motor Vehicle Act of 1939 initially consolidated all motor vehicle
legislations, it required frequent amendments to stay updated. With the progression of
advancements in road transport technology, the expansion of the road network, and
changes in passenger transport patterns, a comprehensive revision of the Act became
necessary to address new developments related to motor vehicles and its rules and
regulations.

The main objective of the Act of 1988 is to provide relief to innocent road users who
often, through no fault of their own, become victims of accidents and struggle to receive
the compensation they deserve. Under this Act, beyond the laws relating to licensing and
registration, various other aspects of road transport vehicles are also covered.

Motor insurance is one of the most important mandatory laws. The motor vehicle should
at least have third-party insurance in order to register and drive a vehicle on Indian roads.
The Act of 2019 introduces stricter penalties for driving a vehicle without a licence,
including a fine of Rupees Two Thousand, three months of imprisonment, and community
service for first-time offenders, and a fine of Rupees Four Thousand for repeated
offenders.
Objectives of Motor Vehicle Act, 1988
The Act of 1988 was passed for the purpose of solving the most prominent issues
mentioned below:

 Implementing strict procedures for issuing licences and determining their validity
period;
 Ensuring road safety by regulating the transportation of hazardous and explosive
materials and enforcing pollution control measures;
 Manage the rapid increase in the number of personal and commercial vehicles in
the country;
 Increase the amount of compensation available to the victims of hit-and-run
accidents;
 Remove the time limit for traffic accident victims to file compensation claims.

Offences covered under the Act

The original Motor Vehicle Act covers the following offences:

 Driving a vehicle without a licence;

 Vehicle owner allowing a person to drive a motor vehicle not possessing a driving
licence;
 Failing to carry all necessary documentation required to drive a motor vehicle on
Indian roads;
 Driving without a permit when required,
 Driving without a vehicle fitness certificate;
 Driving without a registration certificate (R.C.);
 Minor driving a motor vehicle,
 Permitting an unauthorised individual to drive a motor vehicle,
 Driving a motor vehicle without a helmet,
 Driving without fastening the seat belt of the driver seat;
 Exceeding the prescribed speed limit and involving in rash driving;
 Risky driving;
 Driving against the flow of traffic in a one-way lane; and
 Other violations that are considered as offences under the Act.

Important Sections of Motor Vehicle Act, 1988

The following are some of the most important provisions of the Act of 1988:
Essential requirement of a driving licence
Section 3 of the Act of 1988 addresses the necessity of carrying a driving licence. It states
that-

 A person cannot drive a vehicle in a public place until and unless they possess a
valid and authorised driving licence. Additionally, they are not permitted to
operate any transport vehicle, except for a motor-taxi or a motor bike for
personal use or rental under any scheme, unless their driving licence specifically
authorised them to do so.
 These requirements apply to an individual who operates a motor vehicle in India
unless specified by the Central Government.

Age restrictions related to driving of motor vehicles

Section 4 of the Act of 1988 deals with the age limitations for driving motor vehicles. It
states that-

 No individual below the age of 18 years is allowed to operate a motor vehicle in

public. However, any individual who reaches the age of 16 years or older is
allowed to drive a motor vehicle with an engine capacity of less than 50cc.
 No individual under the age of 20 years is allowed to drive a public
transportation vehicle.
 No individual shall be granted a learner’s or permanent driving licence for a
specific class of motor vehicle unless they meet the requisite qualifications to
drive that class of vehicle.

Responsibility of motor vehicle owners for violations of

Sections 3 and 4
Under Section 5 of the Act of 1988, it is provided that no owner or person in charge of a
motor vehicle shall allow anyone who does not meet the requirements of sections 3 or 4
to drive the motor vehicle.

Restrictions on holding driving licences

Section 6(1) of the Act of 1988 provides that no individual shall hold a driving licence
while a valid licence is in effect, except for a learner’s licence.

Section 6(2) of the said Act provides that the holder of a driving licence or learner’s
licence shall not allow it to be used by anyone else.

Section 6(3) of the said Act provides that nothing in this section shall prevent a licensing
authority, as specified in subsection (1) of Section 9 of the said Act, from expanding the
classes of vehicles that the driving licence permits the holder to drive.
Restriction on issuing learner’s licence for certain types
of vehicles
Section 7(1) of the Act of 1988 provides that no individual shall be granted a learner’s
licence to drive a transport vehicle unless they have held a driving licence for a light
motor vehicle for at least a period of one year. This subsection shall not apply to e-carts
or e-rickshaws.

Section 7(2) of the said Act provides that no individual under the age of eighteen years
shall be issued a learner’s licence to drive a motorcycle without gear unless they have
written consent from their guardian.

Necessity for registration

Section 39 of the Act of 1988 provides the necessity for motor vehicle registration, stating
that no person is allowed to drive a motor vehicle in a public place, and no owner should
permit or allow the motor vehicle to be driven shall in a public place by another person,
unless it is registered and the vehicle’s registration certificate of registration has not been
suspended temporarily or cancelled permanently.

Where registration should be made

Under Section 40 of the Act of 1988, it is provided that, in accordance with the provisions
of Sections 42, 43, and 60, it is the duty of every owner of a motor vehicle to register his
or her vehicle. It is to be done by any registering authority in the State that has
jurisdiction over their residence or place of business where the vehicle is primarily kept.

How registration should be made

Section 41(1) of the Act of 1988 provides that an application for the registration of a
motor vehicle should be submitted by or on behalf of the owner. It must be in the
prescribed form and include the required documents, details, and information within the
timeframe set by the Central Government.

First proviso of this subsection provides that in cases where a motor vehicle is owned
jointly by several people, the application must be submitted by any one co-owner on
behalf of all, and that individual will be regarded as the owner for the purposes of the said
Act.

The second proviso provides that if there is a new motor vehicle, the registration
application must be submitted by the dealer if the vehicle is being registered in the same
State where the dealer is located.

Section 41(2) provides that, along with the application of sub-section (1) of Section 41,
the prescribed fees must be paid as set by the Central Government.

Certificate of registration: Section 41(3) provides that the registering authority shall
issue a certificate of registration in the name of the owner, in a format and containing the
details as prescribed by the Central Government.
Section 41(4) provides that in addition to the required details in the certificate of
registration, it must also indicate the type of motor vehicle based on its design,
construction, and use.

Section 41(5) provides that the registering authority shall record the details of the
certificate mentioned in subsection (3) of Section 41. The register is maintained in the
format and manner prescribed by the Central Government.

Registration mark: Section 41(6) provides that the registering authority shall assign a
distinguishing mark to the vehicle, referred to in the said Act as the registration mark.
This mark shall have a set of letters and will be followed by specific letters and numbers
allocated to the State by the Central Government through notifications in the Official
Gazette. The registration mark must be displayed on the motor vehicle in the format and
manner prescribed by the Central Government. The proviso to this subsection provides
that for a new motor vehicle, for which registration is applied under the second proviso to
subsection (1), the vehicle shall not be delivered to the owner until the registration mark
is displayed in the prescribed format and manner.

Validity of certificate of registration: Section 41(7) provides that a certificate of

registration issued under subsection (3) of Section 41, whether before or after the
commencement of the said Act, for a motor vehicle shall be valid for a period of fifteen
years from the date of issue of the registration certificate, subject to the provisions of this
Act. The registration certificate may be renewed for such a duration as prescribed by the
Central Government.

Renewal of certificate: Section 41(8) provides that an application for the renewal of a
certificate of registration, submitted by or on behalf of the vehicle owner, must be made
within the prescribed time limit and in the prescribed format, including the required
details and information as set by the Central Government.

Section 41(9) of the said Act provides that application of registration certificate must also
be accompanied by a fee determined by the Central Government.

Section 41(10) of the said Act provides that, subject to the provisions of Section 56 of the
said Act (Certificate of fitness for transport vehicles), the registering authority may renew
the certificate of registration upon receiving an application under subsection (8) of
Section 41 for a duration as prescribed by the Central Government and shall notify the
original registering authority if it is not the original authority. The Central Government has
the authority to set different renewal periods for various types of motor vehicles.

Section 41(14) of the said Act provides that an application for a duplicate certificate of
registration must be submitted to the last registering authority in the prescribed format,
including the necessary details and information, along with the fee prescribed by the
Central Government.

Necessity for permits

Section 66 of the Act of 1988 provides for the necessity for permits. It states that-

 The owner of a transport vehicle cannot operate it in any public area unless it is
authorised and covered by a valid permit.
  Exceptions include transport vehicles owned by the Central or State
Government, local authorities, ambulances, fire brigade vehicles, police vehicles,
hearses, and those with a registered loaded weight of not more than 3000 kg.
 Additionally, it is mandatory for every educational institution to have a bus
permit. This permit is granted by the State Governments with various terms and
conditions. The buses need to go through the mandatory fitness test because,
without it, the bus permit could not be renewed.

Speed limitation
Section 112 of the Act of 1988 deals with speed limitations for driving a motor vehicle. It
states that-

 No person shall drive or allow a motor vehicle to be driven in any public place at
a speed exceeding the maximum or falling below the minimum speed limit set
for any motor vehicle under the said Act;
 No one is allowed to drive at high speed that exceeds the maximum speed limit
set for any motor vehicle;
 The state government or other authorities may impose speed restrictions for
public safety or convenience due to the nature of the road, bridge, or other
suitable locations. These restrictions are valid for a time period of one month and
no longer.

Weight limitations and usage limitations

Section 113 of the Act of 1988 provides for weight limits and restrictions on usages. It
states that-

 The State Government may define the conditions under which permits are issued
by State or Regional Transport Authorities. It further provides that overloaded
vehicles must be either prohibited or restricted in specific regions or routes;
 It is mandatory for vehicles to be equipped with pneumatic tyres;
 No person is allowed to operate a motor vehicle or trailer in any public place
under the following conditions:
o An unladen weight (i.e., not carrying a load) that exceeds the weight
specified on the certificate of registration, or
o A laden weight (i.e., carries load) that exceeds the gross weight
specified on the certificate of registration.
 If a driver or any individual other than the owner operates a motor vehicle
exceeding the specified weight limits, the court may presume that the offence
was committed with the knowledge or direction of the vehicle’s owner.

Safety measures for drivers and passengers

Section 128 of the Act of 1988 provides that no driver of a two wheeler motorcycle shall
carry more than one additional person. The additional person must be seated on a
properly secured seat behind the seat of the driver and should be equipped with
appropriate safety measures.
Use of protective headgear
Section 129 of the Act of 1988 deals with the necessity of wearing head protection. It
states that every driver must wear a helmet while driving a motor vehicle in a public
place. A helmet is designed to protect against injuries in case of an accident and is
securely fastened to the wearer’s head using straps or other fastenings provided on the
helmet. The provision of this section does not apply to a Sikh individual who is wearing a
turban while driving or riding a motorcycle in a public place. Also, the Central Government
may establish rules to ensure the safety of children under four years of age who are riding
or being carried on a motorcycle.

Obligation to produce a licence and registration

certificate
Section 130 of the Act of 1988 imposes an obligation to present a driver’s licence and a
registration certificate. It states that-

 A police officer in uniform may request the driver of a motor vehicle in any public
location to present their driving licence;
 A police officer in uniform or an officer from the motor vehicle department may
request the conductor of a motor vehicle in any public place to present their
driving licence;
 The registering authority or any other authorised official of the motor vehicle
department may legally require the owner or person in charge of the vehicle to
provide insurance for the vehicle and the fitness certificate as per Section 56.
 If the driver fails to produce these documents within fifteen days of the request,
they must submit attested photocopies in person or by registered post to the
officer who made the request.

Responsibility of the driver when an accident causes

injury to a person
Section 134(1) of the Act of 1988 provides that when a person is injured or third party
property is damaged because of an accident involving a motor vehicle, the driver (owner
of the vehicle) or other individual in charge of the vehicle must do the following:

1. If it is impractical due to mob violence or any other uncontrollable

circumstances, the driver must take all reasonable steps to obtain medical
attention for the injured person. It includes transporting them to the nearest
medical practitioner or hospital. It shall be the duty of every registered medical
practitioner or of the attending doctor at the hospital to promptly provide
medical aid or treatment without waiting for any procedural formalities;
2. He/she shall provide any information requested by a police officer, and if the
police officer is not present there, report the details of the incident, including any
reasons for not taking reasonable steps to secure medical attention as specified
in clause (a), to the nearest police station at the earliest, and in any case within
twenty-four hours of the incident.
3. He/she shall provide the following information in writing to the insurer that
issued the insurance certificates regarding the accident:
 1. insurance policy number and its validity period;
2. date, time, and location of the accident;
3. details of the individuals injured or killed in the accident;
4. name of the driver and details of their driving licence.

Inspection of vehicle involved in the accident

Section 136 of the Act of 1988 provides that when an accident takes place involving a
motor vehicle, any person authorised by the State Government may, upon presentation of
their authority if requested, inspect the motor vehicle. For this purpose of inspection, they
may enter any premises where the vehicle is located at a reasonable time and may
remove the vehicle for examination. However, the owner of the vehicle must be informed
of the location to which the vehicle is taken, and the vehicle shall be returned to the
owner, driver, or person in charge within twenty-four hours after the necessary formalities
have taken place.

Liability for compensation in specific situations based

on the principle of no-fault
Section 140 of the Act of 1988 mandated compensation under specific circumstances
based on the no-fault principle. Please note that, by the Amendment of 2019, this Section
has now been omitted. Under this Section, the following was provided:

 It grants compensation to the aggrieved person if the vehicle itself, its owner, or
the driver of such vehicle causes the death or permanent disability of the
aggrieved party. In cases of death or permanent disability resulting from a motor
vehicle accident, liability is determined under the ‘no-fault principle’;
 The amount of compensation to be paid to the aggrieved party under this section
was as follows:
o In case of an accident resulting in the death of an aggrieved person, a
fixed amount of compensation of Rs.50,000/- is payable; and
o In case an accident resulting in the permanent disability of an aggrieved
person, a fixed amount of compensation of Rs. 25,000/- is payable.
 It was emphasised that compensation under this section is not contingent upon
proving fault, negligence, or default by the claimant, heir or representative. The
principle of no-fault liability governs these compensations;
 If the victim remained unaffected by the accident, the owner of the motor vehicle
was liable to compensate according to this Act and any other applicable laws at
the time the incident took place.

Refund in cases of compensation paid under Section

161 of the Act of 1988
Section 163(1) of the Act of 1988 provides that the payment of compensation for death
of, or serious injury to, any person under Section 161 of the said Act is conditioned on the
understanding that if any other compensation or amount is awarded or paid for such
death or injury, then the portion of the other compensation equal to the amount paid
under Section 161 shall be given as a refund back to the insurer.
Section 163(2) provides that before awarding the amount of compensation for an accident
causing death or bodily injury due to the use of a motor vehicle, the Claims Tribunal, or
the Court, or other relevant authority must verify whether compensation has already been
paid under Section 161 or if an application for compensation is pending under that
section. The Tribunal, or the Court, or authority shall do the following:

1. If the amount of compensation has already been paid under Section 161, instruct
the person liable to pay the compensation awarded to refund the appropriate
amount to the insurer, as required by subsection (1);
2. If an application for compensation is pending under Section 161, forward the
details of the awarded compensation to the insurer.

Special provisions relating to compensation payments

based on structured formula
Section 163A of the Act of 1988 prescribes the laws for granting compensation payments
through a structured formula, which states that-

 The insured owner of the motor vehicle under an authorised insurer has a duty to
compensate the legal heirs or the victim in case of death or permanent disability
resulting from an accident involving the operation of the motor vehicle.
 The claimant does not have the burden to prove or argue that the death or
permanent disability, for which the claim is being made, was due to any unlawful
conduct, negligence, or failure on the part of the vehicle owner, the vehicle itself,
or any other person involved.

Application for compensation

Section 166 of the Act of 1988 describes the procedure for payment of compensation. It
states that:

 An application for compensation can be filed to the Motor Accident Claim

Tribunal by:
o An injured person; or
o The owner of the property damaged or involved in the accident; or
o The legal representative of the deceased person who died in a road
accident; or
o An authorised agent representing the injured person; or
o The legal representatives of the deceased person who died in the
accident.
 The application for compensation shall be submitted on behalf of all legal
representatives of the deceased person.

Claims Tribunals
Section 165(1) of the Act of 1988 provides that a State Government may, through a
notification in the Official Gazette, establish one or more Motor Accidents Claims Tribunals
for a specified area to adjudicate claims for compensation related to accidents resulting in
death or bodily injury to individuals caused by the use of motor vehicles and for damages
to third-party property arising from such accidents, or both.

Explanation to this subsection provides that the term “claims for compensation in relation
to accidents resulting in death or bodily injury to individuals arising from the use of motor
vehicles” includes claims for compensation under Section 164.

Section 165(2) of the Act of 1988 provides that a Claims Tribunal shall have as many
members as the State Government deems appropriate to appoint. If the Claims Tribunal
consists of two or more members, one of them shall be designated as the Chairman.

Section 165(3) of the Act of 1988 provides qualification for appointment as a member of a
Claims Tribunal. No person shall be competent to be a member of the Claims Tribunal
unless they:

1. are or have been a Judge of a High Court, or

2. are or have been a District Judge, or
3. are qualified for appointment as a High Court Judge or District Judge.
Section 165(4) of the Act of 1988 provides that if multiple Claims Tribunals are
established in a given area, the State Government may, through a general or special
order, manage the allocation of business among them.

General provisions for punishment of offences

Section 177 of the Act of 1988 provides that a penalty of Rs.500/- is imposed on any
person for the first time for violating the rules, regulations, or notifications under the said
Act. For the second or subsequent time, the amount of penalty increases to Rs. 1000 and
Rs. 500/-.

Penalties for travelling without a pass and for the

conductor’s failure to perform their duties
It is provided under Section 178(1) of the Act of 1988 that any person who travels on a
stage carriage without a valid pass or ticket, or who fails or refuses to present or
surrender their pass or ticket for inspection upon request, shall be liable to a fine of up to
five hundred rupees. The terms ‘pass’ and ‘ticket’ shall have the same meaning as
defined under Section 124 of the said Act.

Section 178(2) provides that the conductor of a stage carriage, or the driver acting as a
conductor, has the following duties:

(a) supply a ticket to a passenger upon payment of the fare and if he either willfully or
negligently:

1. fails or refuses to accept the fare when offered, or

2. fails or refuses to provide a ticket, or
3. issues an invalid ticket, or
 4. issues a ticket of lesser value, or
(b) check any pass or ticket, and either willfully or negligently fail to do so, they shall be
subject to a fine of up to five hundred rupees.

Section 178(3) of the said Act provides that if the holder of a permit or the driver of a
contract carriage refuses to operate the vehicle or transport passengers in violation of the
said Act, or the rules made under it, they shall be subject to:

1. a fine of up to fifty rupees for two-wheeled or three-wheeled motor vehicles; and

2. a fine of up to five hundred rupees for all other vehicles.

Disobedience of orders, obstruction and refusal of

information
Section 179 of the Act of 1988 addresses disobedience of orders, obstruction, and refusal
of information, stating that-

 In case of absence of any other specified penalty for the offence, any person who
intentionally disobeys the directions given by any person or authority under the
said Act, or obstructs or hinders any person or authority having the authority to
carry out the duties under this Act, shall be liable to pay a fine that may extend
up to Rs. 2000
 In case of absence of any other specified penalty for the offence, any person
who, under the said Act, is required to provide information and purposely
withholds such information, or provides information that they know to be not
true or do not believe to be true, shall be punished with an imprisonment for up
to one month, or a fine of Rs. 2000, or both.

Driving vehicles in violation of Section 3 and 4 of the

Act of 1988
Section 181 of the Act of 1988 provides for driving a motor vehicle under the requirement
for a driving licence and the age restriction related to driving a motor vehicle. It states
that:

 Any person who drives a motor vehicle without a licence as prescribed under
Section 3 of the act; or
 Any person who drives a motor vehicle while under the age restriction prescribed
under Section 4 of the Act;
are subject to imprisonment for a maximum period of three months or a fine of Rs.
5,000/-, or both.

Driving at high speed, etc.

Section 183 of the Act of 1988 describes punishment for driving a motor vehicle at high
speed. Sub-section (1) of Section 183 provides that who drives or allows to drive a motor
vehicle in violation of the speed limits specified in Section 112 of the said Act (Speed
limit) shall face penalties as follows:
 1. In case of light motor vehicles, a fine of not less than one thousand rupees and
up to two thousand rupees;
2. In case of medium goods vehicles, medium passenger vehicles, heavy goods
vehicles, or heavy passenger vehicles, a fine of not less than two thousand
rupees and up to four thousand rupees; and
3. For the second or subsequent offence under this subsection, the driver’s licence
shall be confiscated in accordance with subsection (4) of Section 206 of the said
Act.
Section 183(3) of the said Act provides that no person shall be punished under the
preceding subsection based solely on the testimony of one witness claiming that the
individual was driving at a speed that was unlawful, unless that opinion is supported by an
estimate obtained using a mechanical or electronic device.

Section 183(4) of the said Act provides for the publication of a timetable stating that a
journey or part of a journey must be completed within a specific time. In case there is any
directive to that effect, it shall be considered prima facie evidence that the person who
issued the timetable or direction has committed an offence under subsection (1) if the
court finds that completing the journey within that time would not be feasible without
violating the speed limits set forth in Section 112 of the said Act.

Dangerous driving
Section 184 of the Motor Vehicle Act, 1988, deals with instances of driving a motor vehicle
dangerously. It states that-

 Any person who drives a motor vehicle at a speed or in a manner dangerous to

the public, considering all the circumstances, including the nature, condition, and
use of the place where the vehicle is driven, as well as the amount of traffic
present at that time;
 If such an offence occurs, the person shall be punished for the first time with
imprisonment for six months or a fine that shall not be less than one thousand
rupees and may extend up to five thousand rupees, or with both. For the second
or subsequent time, if the same offence is committed within three years of the
previous offence, then with an imprisonment of 2 years, a fine of 10,000 rupees
or both.

Driving under the influence of alcohol and drugs

Section 185 of the Motor Vehicle Act, 1988, pertains to drinking and driving or a person
who is under influence of drugs. It states that:

 Any person who drives or attempts to drive a motor vehicle:

o With alcohol concentration exceeding 30 milligrams per 100 millilitres of
blood as determined by a breathalyser test; or
o While under the influence of a substance impairing their ability to
control the vehicle.
 For the first offence, a person found driving inebriated or under the influence of
narcotics faces imprisonment for 6 months, a fine of 10,000 rupees or with both.
  For subsequent offences committed within three years of the previous offence,
the individual is liable to imprisonment for two years, a fine of 15,000 rupees, or
both.

Motor Vehicle Act : amendments

On 1st September, 2019, the Motor Vehicle (Amendment) Act, 2019 came into force and
completely replaced the Motor Vehicle Act, 1988. While the Bill for its enforcement was
introduced in the Parliament, it was kept in mind that an important change was made in
the Act for enhancing road safety of the drivers as well as the pedestrians. For this
purpose, the traffic penalties were increased, protection was provided for good
samaritans, making it an obligation upon the automobile companies to recall defective
parts of the vehicle, holding the builders at fault if the quality of road infrastructure is not
up to par, and holding the vehicle owners criminally accountable for any violation
committed by a juvenile driver, etc.

Salient features of the Motor Vehicle (Amendment) Act,

2019
An amendment to the Act of 1988 was necessary to improve road safety in India. The
following are the salient features of the new Motor Vehicle (Amendment) Act, 2019 (w.e.f.
09 August, 2019):

 The said Act makes it mandatory to have an “Aadhar number” before getting a
driving licence or for registering a vehicle in the territory of India;
 There has been a significant increase in the amount of fine payable by an under-
age driver, intoxicated driver, driving without a licence, reckless driving, over
speeding, overloading, etc. It was also proposed by the Union that the amount of
fines would increase each year by 10% in every financial year, i.e., on April 1 of
every year;
 The owner or guardian of the vehicle cannot be held solely liable for a traffic rule
violation committed by a minor unless they fail to prove that the violation
occurred without their knowledge or that they took reasonable measures to
prevent it;
 Under the said Act, the Union Government has been given the competence to
recall any vehicle that could jeopardise the environment, road users, or other
motorists. Once the vehicle is recalled, it is at the discretion of the recalled
manufacturer to opt between the two:

1. To compensate the buyers for the full cost of recalled vehicle; or

2. To get the recalled vehicle replaced with a new one that has better or more
enhanced similar specification than the earlier vehicle;

 It has become a mandate now for the vehicles to compulsorily pass fitness
inspection. This is done so that the quality of the vehicle being used to drive on
the open road could be checked and decrease corruption in the transport
industry. This directly covers the testing agencies and their requirements for
vehicle testing and certification.
 This Act also covers the benevolent persons who help the victims of road
accidents and end up being the victims of harassment. For this purpose, the Act
 defines ‘samaritan’ as a person who offers help to a victim of a road accident,
immediately after the accident takes place. The help offered by the ‘samaritan’
may be medical help or any other form of help as defined in the Act. It must be
done in good faith, voluntarily and without any expectation of receiving any
amount of compensation. This protects the ‘samaritan’ from any civil or criminal
liability if any injury or demise of an accident victim takes place because of sheer
negligence.
 The Central Government has, under the said Act, established a National Road
Safety Board. This Board has been established to advise the State Governments
and the Federal Governments on all matters pertaining to traffic regulations and
road safety. Every State Government shall have officials on Board.
 This Act has made it incumbent upon the Central Government to create a Motor
Vehicle Accident Fund to provide all users of Indian roads with a requirement to
carry insurance. It is used for the following purposes, as mentioned below:

1. Provide treatment to victims of accident in accordance with the golden hour

system;
2. In hit-and-run accidents, compensate the family of the victim of accident;
3. In hit-and-run accidents, compensate the victim of the accident;
4. Pay compensation to the individual as per the mandate of the Central
Government.

 Under this Act, for the victims of traffic accidents, the Golden Hour Care Plan has
been established with cashless care. The term ‘golden hour’ means the time
period of one hour from the moment the accident took place. It is the time
duration in which the victim’s chances of survival are maximum if subjected to
proper care and immediate medical treatment.
 The Amendment of 2019 now covers the driver’s assistance and there is no limit
on liability insurance amount. There has been a ten-fold increase in insurance
compensation amount and the procedure to obtain the amount of insurance
compensation claim has been simplified. It is the obligation of the companies to
resolve the insurance claim within a period of one month after getting approval
from the family of the victim. In the cases of fatal hit-and-run accidents, the
minimum compensation for injuries is now Rupees Two Lakhs from Rupees
Twenty-five thousand, and for serious injuries caused to the victim, the amount
of compensation is now Rupees Fifty Thousand from Rupees Twelve Thousand
Five Hundred.
 A new term, ‘Taxi Aggregators’, is also included in the said Act. They are the
intermediaries who make use of a digital platform to book rides, facilitating the
connection between drivers and passengers. These intermediaries are provided
with licences by their respective State Governments and must comply with the
provisions of the Information and Technology Act, 2000.

Key provisions of the Motor Vehicle (Amendment) Act,

2019
The following Sections are the key provisions under the Motor Vehicles (Amendment) Act,
2019:
Settlement by the insurance company and procedure
thereof
Section 149(1) of the said Act mandates that upon receiving information about an
accident, whether from the claimant through an accident information report or by other
means, the insurance company must appoint an officer to manage the claims related to
the reported accident.

Section 149(2) of the said Act specifies that an officer appointed by the insurance
company under the preceding subsection has the responsibility for processing the
compensation claims and may present a settlement offer to the claimant before the
Claims Tribunal. This must be completed within thirty days and in accordance with the
procedures prescribed by the Central Government.

Section 149(3) of the said Act provides that, if the claimant to whom the offer is made
under sub-section (2) of Section 149:

1. Accepts the offer-

1. The Claims Tribunal shall record the settlement, and the claim shall be presumed
to have been settled by the consent of the claimant;
2. Within a maximum period of thirty days after the consent is given by the
claimant, the insurance company must make the payment.
3. Rejecting the offer, a next date of hearing shall be fixed by the Claims Tribunal
to decide the claim on merits of the case.

Submission of special certificates, licences, and permits

in certain cases
Under Section 158(1) of the said Act, any person driving a motor vehicle in a public place
must, upon request by a uniformed police officer authorised by the State Government,
produce the following documents:

1. Insurance Certificate;
2. Registration Certificate;
3. Certificate of pollution under control;
4. Driving Licence;
5. For a transport vehicle, under Section 56 of the said Act, the certificate of fitness
and its permit;
6. Under this Act, any certificate or exemption authorisation in relation to the use of
the vehicle.
Section 158(2) provides that if an accident has been caused and death or bodily injury
has occurred in the presence of a motor vehicle in a public place and the driver is not able
to produce the requisite certificate, driving licence, and permit to a police officer at the
time when the incident took place, it is necessary for the driver or the owner of the
vehicle to produce these documents at the police station where the driver reports the
incident under Section 134.
Section 158(3) provides that no person shall be convicted for offences under subsections
(1) and (2) of Section 158 as a consequence of failing to produce the required certificate.
This condition will be met only if the person presents the certificate at the police station
specified by them to the requesting police officer, the police officer who was present at
the site of the accident, or the officer-in-charge of the police station within a period of
seven days from the date it was asked under sub-section (1) or from the date on which
the accident took place.

Section 158(4) provides that it is an obligation of the owner of the motor vehicle to
provide any information as requested by or on behalf of a police officer authorised by the
State Government. This information is essential as it assists in verifying whether the
motor vehicle was being driven in violation of Section 146 and whether the driver of the
motor vehicle was obligated to furnish the certificate of insurance.

Section 158(5) defines the term “produce the certificate of insurance.” It means
presenting the pertinent certificate of insurance for scrutiny or any other credible
evidence demonstrating that the motor vehicle was not being driven contrary to the
provisions of Section 146 of the said Act.

Information to be provided about the accident

Section 159 of the said Act requires that a police officer, when investigating an accident,
must prepare a report aimed at facilitating the settlement of claims. The report format
must adhere to the prescribed guidelines, including essential details, and be submitted to
the Claims Tribunal and any other designated authority within a period of three months.

Golden hour scheme

Section 162(1) of the Act introduces the golden hour scheme, requiring general insurance
companies operating in India to provide treatment to road accident victims during the
critical golden hour period, as outlined in the provisions of the said Act, irrespective of
the General Insurance Companies (Nationalisation) Act, 1972 , or any other existing laws
or legal documents.

Section 162(2) of the said Act mandates that the Central Government establish a scheme
for the cashless treatment of victims of accidents during the golden hour, which may
involve setting up a dedicated fund for this purpose.

Compensation payment in cases of death or grievous

hurt, etc.
Under sub-section (1) of Section 164 a provision for payment of compensation in case of
death or grievous hurt, etc. is provided. Notwithstanding any provisions in the Motor
Vehicle (Amendment) Act, 2019, any other current law or any other law for the time being
in force or any instrument having legal enforceability and validity, the owner of the motor
vehicle or the authorised insurer shall be bound to pay the amount of compensation at
the time of death or grievous hurt caused resulting from an accident involving the use of
a motor vehicle. The amount of compensation payable shall be rupees five lakhs in case
of death and rupees two lakh fifty thousand shall be payable in case of grievous injury,
payable to the legal heirs of the deceased or the victims, as the case may be.
Sub-section (2) provides that at the time of claiming compensation under the preceding
sub-section, the claimant is not required to plead or prove that the death caused or
grievous injury incurred was due to any wrongful act, neglect, or default of the owner of
the vehicle, the vehicle itself, or any other person.

Sub-section (3) specifies that the compensation amount payable under this Section will be
reduced by any compensation that has already been paid to the claimant under another
existing law for death caused or injury resulting from a motor vehicle accident.

Scheme for interim relief for claimants

Section 164A(1) makes a mandate upon the Central Government to establish schemes for
providing interim relief to claimants seeking compensation under Chapter XI of the Motor
Vehicle (Amendment) Act, 2019.

Section 164A(2) provides that the scheme established under sub-section (1) of Section
164A must outline the procedure for recovering disbursed funds from the owner of the
motor vehicle in cases where the claim stems from the use of that motor vehicle, or from
other specified sources as determined by the Central Government.

Motor Vehicle Accident Fund

The Central Government under Section 164B(1) of the said Act shall constitute a ‘Motor
Vehicle Accident Fund’, which shall be credited with:

1. The nature of payment notified and approved by the Central Government;

2. Any grant or loan made to the Fund by the Central Government;
3. The balance of the Fund created under the scheme framed under section 163, as
it stood immediately before the commencement of the Motor Vehicles
(Amendment) Act, 2019; and
4. Any other source of income as prescribed by the Central Government.
Sub-section (2) of Section 164B provides that the ‘Motor Vehicle Accident Fund’ shall be
established to provide compulsory insurance coverage to all road users within the Indian
territory.

Sub-section (3) of Section 164B provides that the Fund established under this Section
shall be used for the following purposes:

1. To provide treatment to persons injured in road accidents according to the

schemes framed by the Central Government under Section 162;
2. To provide compensation to the legal representatives of the deceased who died
in a hit-and-run motor accident according to the schemes framed under Section
161;
3. To provide compensation to persons injured grievously in a hit-and-run accident
according to the schemes framed under Section 161; and
4. To provide compensation to such other persons as prescribed by the Central
Government.
Sub-section (4) of Section 164B provides that in each case, the maximum liability amount
shall be as prescribed by the Central Government.
Sub-section (5) of Section 164B provides that in all the cases provided in Section 165(B)
(3)(a) of the said Act, when the amount of claim becomes payable, any amount that has
been paid from this fund to a person shall be deducted from the claim received by that
person from the insurance company.

Sub-section (6) of Section 164B provides that the Motor Vehicle Accident Fund shall be
managed by an authority or agency specified by the Central Government, keeping in
mind the following factors:

1. The agency’s knowledge of insurance business;

2. The agency’s capability to manage fund;
3. Any other criteria as may be prescribed by the Central Government.
Sub-section (7) of Section 164B provides that the Central Government shall maintain
proper books of accounts, relevant records and prepare an annual statement of account
for the Motor Vehicle Accident Fund shall be prepared in the prescribed form. It shall be
done in consultation with the Comptroller and Auditor General of India.

Sub-section (8) of Section 164B provides that the accounts of Motor Vehicles Accident
Fund shall be audited by the Comptroller and Auditor General of India at specified time
intervals.

Sub-section (9) of Section 164B provides that under this Act, the Comptroller and Auditor
General of India, or any person appointed by them to audit the accounts of the Motor
Vehicle Accident Fund, shall have the same rights, privileges, and authority as in the audit
of government accounts. It also includes the right to demand the production of books,
accounts, vouchers and other documents, as well as the right to inspect any of the
authority’s offices.

Sub-section (10) of Section 164B provides that the accounts of the Motor Vehicle Accident
Fund, as certified by the Comptroller and Auditor-General of India or any person
appointed by them, along with the audit report, shall be forwarded annually to the Central
Government. The Central Government shall then present these documents before both
Houses of Parliament.

Sub-section (11) of Section 164B provides that any scheme formulated under Section
161(3) of the said Act, as it existed before the commencement of the Motor Vehicle
(Amendment) Act, 2019, shall be terminated. All the rights and obligations arising from
such schemes shall be fulfilled using these funds from the Motor Vehicle Accident Fund
from the date of commencement of the Motor Vehicle (Amendment) Act, 2019, i.e.,
September 1, 2019.

Motor Vehicle Amendment, 2020

The Motor Vehicle Act of 1988 underwent a substantial Amendment in 2020, effective
from October 1, 2020. One notable change was that it allowed the drivers to keep a
softcopy of their driver’s licence and other documents in their vehicle instead of carrying
physical papers. It helped millions of people who use the roadways on a daily basis. This
change was implemented by the Ministry of Road to ensure compliance with traffic
regulations, promote digitalisation, and minimise unnecessary inconvenience to drivers
by police officers.
Changes in the traffic rules under the Amendment of 2020
 The Amendment of 2020 allows individuals to keep documents on their mobile
devices, sparing them the burden of carrying physical copies. If requested by the
police officer, drivers can now present soft copies of their driver’s licence and
other related documents.
 The documents of the motor vehicle will no longer undergo physical inspection.
The authorities have the power to cancel a driver’s licence through an updated
website.
 The behaviour of the driver will be monitored and the identity of the police
officer will be updated on the site as per the official announcement. The site will
be regularly updated with information from every driver or vehicle inspection.
Driver’s licence and registration certificates can be stored online on the
government’s DigiLocker or m-Parivahan platforms.
 On the government’s DigiLocker or m-Parivahan, driver’s licences and other
papers, such as registration certificates, can be kept online.
 To ensure drivers maintain focus, portable communication devices like cell
phones can only be used for navigation. The Motor Vehicle Act of 1988 includes
fines for traffic law violations, reducing the need for frequent checks and easing
traffic congestion. Violators will receive an e-challan via the government’s digital
platform.
 After a driver’s licence is cancelled, offenders must report to Parivahan Sarathi
website.

Recent Supreme Court judgements on Motor Vehicle Act, 1988

United India Insurance Co. Ltd. vs. Sunil Kumar and

Anr., (2017)
The Hon’ble Supreme Court has held in this case that an insurer cannot raise any defence
of negligence on the part of the victim as provided under Section 163A(2) of the Act of
1988 and is not entitled to file a claim for negligence. This landmark case interprets
Section 163A of the said Act, which includes specific provisions for compensatory
payments based on a structured formula. Below are the facts, issues, and the Court’s
ruling in this case:

Facts of the case

 In this case, the respondent filed a compensation claim under Section 163A of
the Motor Vehicle Act, 1988, for injuries sustained in a traffic accident on
November 20, 2006.
 Following the recording of evidence and hearing the parties, the tribunal issued a
judgement dated August 16, 2011, awarding Rs. 3,50,000/- along with an
interest at a rate of 7% per annum.
 Subsequently, the insurance company, dissatisfied with the ruling, appealed the
decision, citing non-compliance with Section 170 of the Motor Vehicle Act, 1988.
The appeal was subsequently escalated to the Supreme Court for adjudication.
Issues involved
In a claim procedure under Section 163A of the Motor Vehicle Act, the issue arose in this
case as to whether the insurer has the capability to raise a defence or plea of negligence?

Judgement of the case

The Court held that in cases under Section 163A of the Act of 1988, insurance companies
cannot present a defence of negligence on behalf of the victim. Section 163A (2) of the
Motor Vehicles Act, 1988, specifically prohibits this practice. Therefore, the owner or
insurance company will be liable for compensation and held the following:

 Compensation under Section 163A is in the nature of a final award, and

adjudication is made without the need for proof of negligence on the part of the
driver or owner of the vehicles involved in the accident.
 Section 163A (2) expressly states that it is not necessary for the claimant to
prove fault. However, the abovementioned clause does not expressly rule out
the possibility of an insurer’s defence based on the claimant’s carelessness.
Nevertheless, permitting an insurer to employ such a defence under such
circumstances would contradict the legislative intent behind Section 163A of the
Act.

Mukund Dewangan vs. Oriental Insurance Company

Limited (2017)
The Hon’ble Supreme Court in this case held that a driver holding a light motor vehicle
licence can operate a transport vehicle without requiring an endorsement. Below are the
facts, issues, and the court’s decision in this case:

Facts of the case

 The licences issued in this case covered various vehicle categories, namely, light
motor vehicles, medium goods vehicles, medium passenger motor vehicles,
heavy goods vehicles, and heavy passenger motor vehicles.
 To streamline the driver’s licence acquisition process, certain categories,
including those mentioned above, were removed. A new category for transport
vehicles was introduced following an amendment to the Motor Vehicle Act of
1989 on November 14, 1994.
 Form No. 4 of the 1989 regulations, used for licence applications, initially listed
four different categories. It was not until March 28, 2001, that Form No. 4 was
amended to include the term “transport vehicle,” aligning with the 1994
Amendment to the Motor Vehicle Act of 1989.

Issues involved
 Whether a driver holding a light motor vehicle licence needs an endorsement to
operate a transport vehicle of the same class?
Judgement of the case
According to the Hon’ble Supreme Court it was held that if a driver holds a light motor
vehicle licence and operates a transport vehicle of the same type, no additional
endorsement is required.

Pappu Deo Yadav vs. Naresh Kumar and Ors. (2020)

The Hon’ble Supreme in this case held that accidents causing permanent disability,
regardless of the percentage of disability, if a person becomes permanently incapacitated
from continuing their previous profession, vocation, or business and their income-
generating capacity has been affected adversely, future prospects shall be awarded.

Facts of the case

 The appellant was travelling to Hapur by bus. The bus reached Sidakpur, where
the driver of the offending bus overtook the bus in which the appellant was
travelling. The offending bus was coming from the wrong side and dashed the
appellant’s bus, scratching it.
 The incautious and careless act of the offending bus caused a dent in the bus
where the appellant was seated and he suffered injuries.
 The appellant asked for compensation claims against the vehicle owner, driver,
and insurer. At the same time, he also applied for assessment of his disability
while the case was ongoing before the Motor Accident Claims Tribunal.
 He applied for compensation under Sections 140 and 166 of the Motor Vehicles
Act, 1988. He claimed Rupees Fifty Lakhs with an interest of twelve percent per
annum against the first respondent (the driver of the bus at the time of
accident), the second respondent (the owner of the vehicle) and the third
respondent (the insurer).
 The Motor Accident Claims Tribunal rejected the appellant’s objection regarding
its jurisdiction and held that the appellant had suffered injuries as a result of
incautious and careless driving of the respondent.

Issues involved
 Whether in case of permanent disablement caused due to a motor accident, the
claimant can seek compensation beyond the future loss of income, amounts for
future?
 What is the extent of permanent disability?

Judgement of the case

 The Hon’ble Supreme Court held that in determining the amount of
compensation to the accident victims who are disabled, either temporarily or
permanently, efforts should be made to award adequate compensation not only
for the physical injury and treatment but also for the loss of earning capacity and
the inability to live a normal life.
 The extent of permanent disability is typically determined by doctors with
reference to the whole body or, more commonly, with reference to a specific
 limb. If the claimant suffers permanent disabilities due to the injuries caused, the
assessment of the amount of compensation for loss of future earnings depends
on the effect and impact of such permanent disability on their earning capacity.

Joginder Singh vs. ICICI Lombard General Insurance

(2019)
The Hon’ble Supreme Court in this case held that the age of the deceased has to be taken
into consideration while computing the amount of compensation payable, not the age of
the dependents of the deceased.

Facts of the case

 The deceased, Ambika Thakur, was twenty years of age at the time of her death.
She was travelling in her car with registration number ‘CH-04-H-0297’ from
Chandigarh to Bathinda. Her vehicle collided with a Tata Ace registered under
‘PB-03T-4804’. The Tata Ace was being driven rashly and negligently.
 The offending vehicle abruptly came to a halt in front of her car, causing a head-
on collision that tragically resulted in Ambika Thakur’s death.
 The offending vehicle was insured with the Respondent – Insurance Company.

Issues involved
 Whether the multiplier for computing the amount of compensation in case of a
bachelor should be based on the age of the deceased or the age of the parents?

Judgement of the case

 The Hon’ble Supreme Court in this case held that the age of the deceased, not
the age of the parents, should be considered when determining the appropriate
multiplier to be applied.

Kirti vs. Oriental Insurance Company Limited (2021)

The Hon’ble Supreme Court in this case held that the issue of granting future prospects is
no longer unsettled and is now firmly established.

Facts of the case

 On April 12, 2014, around 7 AM in Delhi, Vinod and Poonam, a couple commuting
on a motorcycle, were involved in a collision at an intersection with a car
registered as ‘DL 7CA 1053’. The impact incapacitated them instantly, leading to
their deaths due to cranio-cerebral damage and hemorrhagic shock from the
blunt-force trauma of the accident.
 Under Section 166 of the Motor Vehicles Act, 1988, a claim petition was filed by
the two young daughters and elderly parents of the deceased.
  The driver and owner of the offending vehicle contended that the deceased
couple were driving negligently and that the accident was a result of their own
actions.
 Two witnesses were examined from the side of the claimants (the appellant),
while none were presented from the side of the respondents.

Issues involved
 Whether the deduction for personal expenses should be calculated taking into
account the death of the mother?
 Which tier of minimum wages should be used for evaluating income?
 Whether compensation should be granted for the deceased’s potential future
earnings in the absence of employment records or a steady income source?

Judgement of the case

 The Hon’ble Supreme Court held that the justification for including future
prospects in compensation awards is no longer restricted to the nature of
employment, whether permanent or otherwise, although the percentage
awarded is still a considerable factor.
 Incorporating future prospects is now integral to the Court’s responsibility to
ensure fair compensation, taking into account real-life factors such as inflation,
individuals’ efforts to enhance their and their families’ lives, increasing wage
levels, and the impact of experience on work quality.

Key takeaways from this case

The following considerations must be taken into account when calculating notional
income for homemakers and granting compensation for their future prospects:

 It is a well-established principle to award compensation to homemakers based on

financial considerations.
 Recognizing the gendered nature of household responsibilities, where a
significant majority of women are typically involved compared to men,
calculating a notional income for homemakers holds significance. This practice
acknowledges their contributions, labour, and sacrifices, reflecting the positive,
changing societal attitudes. It also aligns with our country’s international legal
obligations and constitutional principles of social equality and ensuring dignity
for all.
 The Court may calculate the notional income of a homemaker on the basis of
their work, labour and sacrifices on the basis of each case.
 When selecting a method and assessing notional income, the Court should be
fair in considering the particular circumstances of the case and avoiding both
extremely conservative and generous estimates of the amount of compensation.
 It should also include future prospects based on the calculated notional income,
which is a crucial aspect of ensuring just compensation in such cases.
Penalties under the New Motor Vehicle Act, 2019
The following are the penalties under the New Motor Vehicle Act, 2019:

Legal Provision
S.
Violation under the Act of New penalty from September 2019
No
2019

1. Driving/ Riding without licence Section 181 ₹5,000 and/or community service.

Driving/Riding under the

₹10,000 and/or 6 months prison| ₹15,000 and /or
2. influence of an intoxicating Section 185
2 years jail for the repetitive violation.
substance

Light motor vehicle: ₹1,000- ₹2000MPV/HPV:

3. Overspeeding Section 183
₹2,000-₹4,000 (+licence seizure).

4. Driving without a seat belt Section 194B ₹1,000 and/or community service.

Driving/Riding without ₹2,000 and/or 3-months prison, community service

5. Section 196
insurance | ₹4,000 for a subsequent offence.

6. Violating road regulations Section 177A ₹500- ₹1000

Dangerous driving/riding and ₹1,000- ₹5,000 and/or 6-months to 1 year in prison,

7. Section 184
jumping red light licence seizure.

Driving/Riding while on the

8. Section 177 ₹5,000
mobile (handheld)

₹5,000 and/or 3-months prison, community service

9. Speeding, Racing Section 189 | ₹10,000 for subsequent violation and up to 1 year
in prison, community service.

Not giving way to emergency

10. vehicles like ambulances, fire Section 194E ₹10,000 and/or community service.
engines, etc.

Riding without Helmet (rider ₹1000, and or licence disqualification, community

11. Section 129
and pillion rider) service for 3-months.

₹2,000 and licence disqualification and/or 3-

12. Overloading Two-Wheelers Section 194C
months of community service.
 ₹25,000 with 3-years prison, cancellation of
13. Juvenile Offences Section 199A registration for 1-year, juvenile ineligible for licence
until 25 years of age.

Driving/Riding despite
14. Section 182 ₹10,000, and/or community service.
disqualification

₹200 for every extra passenger and/or community

15. Overboarding Passengers Section 123
service.

16. Driving/Riding without ticket Section 178 ₹500

Offence committed by
Twice the penalty (varies according to traffic rules
17. enforcing authorities such as Section 210B
violated).
offering bribes

Unauthorised use of vehicles

18. Section 180 ₹1,000- ₹5,000
without licence

Disobedience of orders of the

19. Section 179 ₹2,000
authorities

₹10,000 and/or up-to 6-months prison, community

20. Vehicles without permit Section 192
service.

21. Oversized Vehicles Section 182B ₹5,000 to ₹10,000 and/or community service.

₹20,000 + ₹2,000 for every extra tonne and/or

22. Overloading Section 114
community service.

Driving/Riding without licence

23. Section 36 ₹25,000 to ₹1,00,000
(for aggregators)

Driving/Riding without
24. Section 192 ₹5,000 | ₹10,000 for a subsequent offence.
registration

25. Using horn in silent zone Section 194F ₹2,000 | ₹4,000 for a subsequent offence.

Central Motor Vehicle Rules, 1989

The Ministry of Road, Transport, Highways, and Shipping introduced the Central Motor
Vehicle Rules in 1989, which regulate various aspects of vehicle-related activities. These
include driver licensing, traffic inspections, manufacturing and maintenance of motor
vehicles, as well as the licensing of automotive components and entire vehicles.
Rule 3 of Central Motor Vehicle Rules, 1989 states that this rule does not apply to
individuals who are receiving driving lessons or gaining driving experience while
undergoing a test of competence to drive, provided the following conditions are met:

 The person holds a valid learner’s licence issued in Form 3 for driving the
vehicle.
 The person is accompanied by an instructor who holds a valid driving licence for
the vehicle being driven, and the instructor is positioned to control or stop the
vehicle.
 The letter ‘L’ is prominently displayed in red on a white background on both the
front and rear of the vehicle, or on a plate or card affixed to the vehicle
Rule 4 of Central Motor Vehicle Rules, 1989 states that every applicant of a motor vehicle
licence must provide evidence of their address and age by submitting one or more of the
following original documents or relevant self-attested extracts:

 Electoral Roll;
 Life Insurance Policy;
 Passport;
 Pay slip issued by any office of the Central Government, State Government, or
local authority;
 School Certificate;
 Birth Certificate;
 Certificate issued by a registered medical practitioner, not below the rank of Civil
Surgeon, verifying the applicant’s age;
 Any other document(s) that may be prescribed by the State Government
under clause (k) of section 28 of the Act of 1988;
 Proof of legal presence in India, along with proof of residence for foreigners.
In cases where the applicant has sufficient reasons for not possessing any of the above-
mentioned documents, the licensing authority may accept an affidavit sworn by the
applicant before an Executive Magistrate, First Class Judicial Magistrate, or Notary Public
as proof of age and address.

Rule 5 of the Central Motor Vehicle Rules, 1989 states the following:

 When an applicant applies for a learner’s licence, driving licence, adding another
class or category of motor vehicle to a driving licence, or renewing a driving
licence to operate a non-transport vehicle, they must include a self-declaration of
physical fitness in Form 1. The application for a licence to drive a transport
vehicle must be accompanied by a medical certificate in Form 1A issued by a
registered medical practitioner as specified in sub-section (3) of Section 8 of the
Act of 1988;
 An application for a medical certificate must include a declaration in Form 1;
 A medical certificate issued in Form 1A shall be valid for a period of one year
from the date of issue. It must also include a passport-sized photograph of the
applicant.
Rule 6 of Central Motor Vehicle Rules, 1989 provides for a condition when an applicant is
exempted from the requirement of submitting a medical certificate. Any applicant who
has submitted a medical certificate for obtaining a learner’s licence or driving licence for
the purpose of initial issuance, renewal or adding another class of motor vehicle to their
licence will not need to provide a medical certificate again, except when applying for the
renewal of a driving licence.

Central Motor Vehicles (Second Amendment) Rules, 2022

On February 15, 2022, the Ministry of Road Transport and Highways released the Central
Motor Vehicles (Second Amendment) Rules, 2022, to amend the Central Motor Vehicles
Rules, 1989. In the Central Motor Vehicles Rules, 1989, after sub-rule (6) to Rule 138, the
following sub-rule (7) has been added:

After one year from the date of publication of the Central Motor Vehicles (Second
Amendment) Rules, 2022, the driver of a motorcycle should also ensure the following
safety measures while carrying a child between the ages of nine months and four years
as a rider, namely:

1. For children under the age of four years, a safety harness shall be used to attach
the child to the driver of the motorcycle. The safety harness should include the
following:

 Lightweight, adjustable, waterproof, and durable;

 Made from heavy nylon or multifilament nylon with high-density foam; and
 Designed to support weights of up to 30 kg.

2. It is the duty of the driver to ensure that any child pillion passenger between the
ages of nine months and four years wears a properly fitting crash helmet or a
bicycle helmet that meets the standards of ASTM 1447] or [European (CEN) BS
EN 1080/BS EN 1078], until specific guidelines are established by the Bureau of
Indian Standards under the Bureau of Indian Standards Act, 2016.
3. The motorcycle’s speed with a child up to four years old riding as a pillion must
not exceed 40 km/h.

Difference between the Motor Vehicles Act, 1988 and

Motor Vehicles (Amendment) Act, 2019
1. Safety of pedestrians and non-motorized transport

 There were no provisions in the Motor Vehicles Act, 1988 for the safety and
security of pedestrians and non-motorised road users.
 Section 138(1A) of the Motor Vehicles (Amendment) Act, 2019 empowers the
State Government to regulate the activities of pedestrians and non-motorised
road users in public places. It also suggests that the State Government should
regulate the activities of pedestrians and non-motorized road users.

2. Safety of children at the time of commute

 There were no provisions in the Motor Vehicles Act, 1988 for the safety of
children during a commute.
 Section 194B of the Motor Vehicles (Amendment) Act, 2019 makes it compulsory
that every child must be secured by either a safety belt or a child-restraint
system. It imposes a fine of Rs. 1000 on adults who fail to seat children safely.
 The amendment to Section 129 of the Motor Vehicles Act, 1988, provides that
every child above the age of four years, riding on a motorcycle, must wear a
helmet conforming to design and specifications prescribed by the Central
Government. Additionally, under Section 137(aa) of the said Act, the Central
Government is empowered to establish standards for protective gear and safety
measures for children under four years of age, as stipulated under Section 129 of
the Motor Vehicles Act, 1988.

3. Recalling of vehicles

 There were no provisions in the Act of 1988 for recalling vehicles that are old,
harmful to the environment, or fail to meet safety standards.
 Sections 110A and 110B of the Act of 2019 authorises the Central Government
to recall vehicles that do not meet safety standards and also establish testing
agencies responsible for issuing certificates of approval.

4. Severe penalties for inadequate road design, engineering, and maintenance

 The Motor Vehicles Act of 1988 originally lacked provisions to hold road
contractors and civic agencies responsible for faulty road design and neglecting
maintenance, potentially causing accidents.
 However, Section 198A of the Motor Vehicle (Amendment) Act, 2019 addresses
this gap by aiming to enforce accountability among road contractors, consultants
or concessionaires for flawed road design, construction, and maintenance.
Violation of these standards could incur fines of up to Rupees One Lakhs.

5. Transparent, centralised, and efficient driver’s licensing system

 The Motor Vehicles Act of 1988 did not have a centralised database for all
licences and motor vehicles across the territory of India. Due to this, there were
a number of cases where individuals possessed multiple licences issued by
different States.
 Second proviso to Section 9(3) Motor Vehicles Act of 1988 exempted driver’s
licence applicants from the competence test if they had a driving certificate
issued by a State-recognized institution.
 A minimum level of educational qualification was mandatory under Motor
Vehicles Act of 1988 for applicants seeking to drive transport vehicles.
 The Motor Vehicles (Amendment) Act, 2019 digitalized the licensing system and
applicant identification will now be linked using the Unique Identification Number
(UID) mechanism.
 Section 9(4) of the Motor Vehicles Act of 1988 has been omitted under the Motor
Vehicles (Amendment) Act, 2019, which provided for the requirement for
minimum educational qualifications for transport drivers.
 Section 12(5) of the Motor Vehicles Act, 1988, removes the requirement for
applicants to hold a light motor vehicle licence for at least one year before
applying for a learner’s licence to drive a transport vehicle. Applicants can now
directly apply based on training received from an accredited school.
 Under Section 14(2)(a) of the Act of 1988, the renewal period for transport
licences has been extended from three years to five years. Specifically for
 transport licences involving vehicles carrying hazardous goods, the renewal
period has been extended from one year to three years, subject to specified
conditions set by the Central Government.
 To enhance transparency and efficiency in licence issuance, Section 25A has
been introduced under the Motor Vehicles Act, 1988. This section mandates the
establishment of a National Register for Driving Licences, consolidating data on
all licences issued across India. It also stipulates that no driving licence is valid
unless it has been issued a Unique Driving Licence Number under the National
Register of Driving Licences.
 The exemption from the competence test, as provided in the second proviso of
Section 9(3) of the Motor Vehicles Act, 1988, has been removed by the Motor
Vehicles (Amendment) Act, 2019.
 Under the Motor Vehicles (Amendment) Act, 2019, licence renewal intervals are
set at 10 years after reaching the age of 40 and 50, following 30 years of age.
After reaching 55 years of age, renewal intervals are set every 5 years.
 An amendment to Section 19 grants the licensing authority the power to
disqualify individuals from holding a licence and to publicly disclose their names,
unless they successfully complete a driver refresher training course from an
accredited school after committing a specified number of offences.
 Under Section 27 of the Act of 1988, certain provisions have been added by the
Act of 2019, which are as follows:

1. The format and procedure for issuing licences by the licensing authority;
2. The curriculum and training modules for regulating schools and establishments
mentioned in Section 12;
3. The process of publicly disclosing a licence holder’s name for disqualification
following a specified number of offences;
4. The content, syllabus, and duration of driver refresher training courses;
5. The topics specified in Section 25A, which include the maintenance of National
Registers for driving licences.
6. Registration of new motor vehicles by vehicle dealers

 Under Section 41 of the Motor Vehicles Act of 1988, vehicle dealers were not
authorised to conduct motor vehicle registrations.
 The Amendment under Section 41 of the Motor Vehicles (Amendment) Act, 2019
authorises vehicle dealers to register new vehicles. The newly registered
vehicles now provide distinct registration marks. There is also a provision for
imposing penalties on dealers who neglect to correctly register a vehicle or fulfil
their responsibilities.
 It is provided under Section 192B (2) of the Act of 2019 that any dealer who fails
to apply for the registration of a new motor vehicle as required by the second
proviso to sub-section (1) of Section 41 of the said Act will face a fine equal to
fifteen times the annual road tax or the lifetime tax of the vehicle, whichever
amount is greater.

7. Revision of fines

 Under the Motor Vehicles Act of 1988, there was no provision for systematically
increasing fines to keep pace with inflation levels over time.
 Section 199B of the Motor Vehicles (Amendment) Act, 2019 now provides that
there shall be a fixed annual increase of all fines by 10% starting from the 1st
day of April each year.

8. Electronic monitoring and enforcement of road safety

 Since enforcement of motor vehicles laws was under the purview of the State.
Under the Motor Vehicles Act of 1988, the implementation of electronic
enforcement varied amongst different states.
 Section 136A of the Motor Vehicles (Amendment) Act, 2019 assigns the
responsibility to the Central Government to establish rules for electronic
monitoring and enforcement of road safety. The State Governments are
mandated to ensure compliance with these rules.

9. National Road Safety Board

 The Motor Vehicles Act, 1988 did not include provisions for a National Road
Safety Board.
 However, under Section 215B of the Motor Vehicles (Amendment) Act, 2019, a
National Road Safety Board has been established. This Board is responsible for
advising both the Union and State Governments on a wide range of road safety
and traffic management issues. This includes setting standards for road design,
vehicle maintenance, road maintenance, sustainable use of road transport,
safety for vulnerable road users, road construction technology, and motor
vehicle standards.

10. Transport aggregators

 The Motor Vehicles Act, 1988, did not have provisions for recognizing transport
aggregators such as cab service providers, etc.
 However, under Section 93 of the Motor Vehicles (Amendment) Act, 2019,
statutory recognition is given to transport aggregators.

11. National Transportation Policy

 There were no provisions in the Motor Vehicles Act, 1988 for developing a unified
transportation policy for the country.
 Sections 66A and 66B of the Motor Vehicles (Amendment) Act, 2019 empowers
the Central Government to establish a National Transportation Policy in
consultation with the States.

12. Penalty multiplier

 There were no provisions in the Motor Vehicles Act, 1988 for the State
Governments to increase any penalties under the current regulations in force
then.
 Section 210A of the Motor Vehicles (Amendment) Act, 2019 empowers the State
Governments to determine a “multiplier” (ranging from one to ten) to be applied
to each fine.
 Section 210B of the Motor Vehicles (Amendment) Act, 2019 stipulates that any
enforcing authority under the said Act will be liable to pay twice the penalty
applicable for the offence under the Act.
Central Motor Vehicles (Fifth Amendment) Rules, 2022
On April 1, 2022, the Central Motor Vehicles (Fifth Amendment) Rules, 2022, came into
effect. These rules introduce a revised process aimed at promptly investigating and
resolving Motor Accident Claims. They stipulate that all such claims should be
investigated and adjudicated within a timeframe ranging from six months to one year.
The new Rules have significantly transformed the jurisprudence of motor accident
compensation by ensuring that claimants receive compensation within one year of the
accident. These Rules are modelled after the framework established by the Delhi High
Court in the case of Rajesh Tyagi & Ors. vs. Jaibir Singh & Ors. (2021).

The new Rules have established specific timelines for various stakeholders to expedite
the settlement of Motor Accident Claims:

 The police must submit Form-I of the First Accident Report (FAR) to the Motor
Accident Claims Tribunal (MACT) within 48 hours of the accident;
 The police are required to notify the victims of their rights using Form-II within 10
days of the accident;
 The driver of the vehicle involved in the incident must submit Form-III (Driver’s
Form) to the police within 30 days of the accident;
 The owner of the vehicle involved in the incident must submit Form-IV (Owner’s
Form) to the police within 30 days of the accident;
 Upon verifying the Driver’s and Owner’s Forms, the Police must submit the
Interim Accident Report (IAR) to the MACT within 50 days of the accident;
 The victims are required to submit Form-VI and VIA (Victim’s Forms) to the Police
within 60 days of the accident;
 The Police must submit Form-VII, the Detailed Accident Report (DAR), to the
MACT within 90 days of the accident;
 Upon verifying Form-VI submitted by the victims, the Insurance Company must
submit their response and settlement offer to the MACT within 30 days of
receiving the Detailed Accident Report (DAR);
 If the Insurance Company acknowledges liability and presents a fair and
acceptable compensation offer to the claimants, the Claims Tribunal will issue a
Consent Award within 6 months of the accident;
 If the Insurance Company admits liability but the offered amount is deemed
unfair or unacceptable by the claimants, the Claims Tribunal will conduct a
hearing on the compensation amount and issue an award within 9 months of the
accident;
 If the Insurance Company contests the liability, the Claims Tribunal will conduct
an inquiry that must conclude within 12 months of the accident.

Conclusion
The Motor Vehicle Act aimed to provide safety to all citizens in the country, protecting
them from harm and avoiding traffic congestions. This legislation requires adherence to
the laws across all of India and imposes fines for any violation. Both the Motor Vehicle Act,
1988 and the Motor Vehicle (Amendment) Act, 2019 ensure the safety of vehicle owners,
drivers, and all road users nationwide. The citizens are expected to adhere to these laws,
which are made to promote their own safety and well-being as well as that of others. The
Act promotes uniformity across the country to mitigate traffic congestion and reduce
accidents. In cases where an unavoidable accident leads to death, permanent disability,
or minor injury, victims and their families have the right to seek compensation from the
responsible parties or drivers of the vehicle involved. Therefore, it is crucial for everyone
to comply with the laws and regulations outlined in the Act to contribute to a safer and
better living environment in India.

Frequently Asked Questions (FAQs)

What is the minimum age limitation criteria for

obtaining a two wheeler driving licence in India?
To apply for a driving licence in India, it is important that the minimum age limitation
criterion based on the type of vehicle being driven is met. For two-wheeler
Licence, Section 4 of the Act of 1988 provides that a driver must be at least 16 years old
for scooters under 50 cc and 18 years old for motorcycles and scooters over 50 cc.
Section 7(2) of the said Act also provides that no person below the age of 18 years shall
obtain a learner’s licence to drive a gearless motorcycle unless they have written consent
from their guardian or caregiver.

Which form needs to be filled in case of transfer of

ownership of the vehicle?
Form 29 needs to be filled in case of transfer of ownership of the vehicle.

Under which Section is it required to present the

vehicle physically before registration?
Under Section 44 of the Act of 1988, it is required to present the vehicle physically before
registration. It is provided that, excluding transport vehicles, before registering a motor
vehicle or renewing its registration certificate, the registering authority must require the
applicant to present the vehicle either before itself or before an authority designated by
the State Government. It ensures that the information in the application is correct and
meets the requirements of the said Act and its connected rules.

Whether the Motor Accident Claims Tribunal is a court

of record?
The Motor Accident Claims Tribunal is not a court of record. It is a Civil Court of limited
jurisdiction, as held by the Hon’ble Supreme Court in Urvibem Chiragbhai Sheth vs.
Vijaybhai Shambhubhai Joranputra & Ors. (2011).
Does the Motor Vehicles Act 1988 prohibit riding
without a helmet?
Yes, riding without a helmet is punishable under Section 129 of the Act of 1988.

What is ‘just compensation’ for the purpose of payment

to victims?
Section 168 of the Act of 1988 provides for the payment of compensation to the victims of
the accident or to the legal representatives of the deceased. It provides that the payment
of compensation must be ‘just compensation’. The Hon’ble Supreme Court in State of
Haryana vs. Jasbir Kaur (2003) held that the expression ‘just’ denotes an equal, fair,
reasonable and non-arbitrary award of compensation.

Who shall be the members of the Motor Accident

Claims Tribunal?
Section 165(2) of the Act of 1988 provides that the State Government shall decide the
number of members of the Claims Tribunal as it may think fit. Where there are two or
more members in the Claims Tribunals, one of the members shall be appointed as the
Chairman thereof.

Section 165(3) of the Act of 1988 provides that the following persons shall be qualified for
appointment as members of the Claims Tribunal:

 Any serving or retired High Court Judge; or

 Any serving or retired District Court Judge; or
 Any person who is competent to be appointed as High Court Judge or as a
District Court Judge.

Who is eligible to claim compensation under the Motor

Accident Claims Tribunal ?
Section 165 of the Act of 1988 provides that the Motor Accident Claims Tribunal
adjudicate upon claims for compensation in respect of accidents involving:

 Death or bodily injury caused to the person; or

 Damage to any property of a third party; or
 Both.

How shall the award of interest be calculated in

relation to the amount of compensation ?
Section 171 of the Act of 1988 provides that where any court or Motor Accidents Claim
Tribunal allows a claim for compensation, such Court or Tribunal may direct that, in
addition to the amount of compensation, simple interest shall be payable from such date,
not earlier than the date of making the claim, as it may specify on this behalf.

What are the penalties for participating in a motor

vehicle race or speed trial on a public road without the
State Government’s consent ?
Section 189 of the Act of 1988 provides that any person who, without the written consent
of the State Government, permits or participates in a race or speed trial of any kind
between motor vehicles in any public place shall be punished with an imprisonment for a
term of up to three months, a fine of Rupees Five Thousand, or both. For a subsequent
offence for the same offence, the punishment shall be imprisonment for a term of up to
one year, a fine of Rupees Ten Thousand, or both.