The Motor Vehicle (Amendment) Act, 2019

The Motor Vehicle (Amendment) Act, 2019: All you need to know about

The Motor Vehicle (Amendment) Act, 2019
To help the aspirants with the updated insurance products, in this article, we have provided the full details about The Motor Vehicle (Amendment) Act, 2019.
Full details and comparisons about these old and New Motor Vehicle (Amendment) Act have been provided in this article. You can check out the details of these Motor Vehicle (Amendment) Act 2019 here, which will help in the upcoming Para 13.2 / GIPSA exams.

The Motor Vehicle (Amendment) Act, 2019: Comparisons Between Old and New Act

Section 14- Currency of Driving Licence

Authorisation

 

Old Provision

 

New Provision

 

Transport vehicle

 

Valid for 3 Years

 

Valid for 5 Years

 

Transport Vehicle

carrying goods of

dangerous or

hazardous nature

Valid for 1 Year

 

Valid for 3 Years

 

Any Other Licence

 

Valid for 20 Years

or till the person

attains the age of

50 Yrs., whichever

is earlier

If the person has

attained the age of 50 Yrs.- Valid for 5 Years

Age of the licence

holder

 

Validity

 

Below 30 Yrs.

 

Till the age of 40 Yrs.

 

Attained 30 Yrs. &

Below 50 Yrs.

 

Valid for 10 Yrs.

 

Attained 50 Yrs. &

below 55 Yrs.

 

Till the age of 60 Yrs.

 

Attained 55 Yrs.

 

Valid for 5 Years

 

 

 Section 15-RenewaI of driving licences 

Old Provision New Provision
where the application for the renewal of a licence is made more than thirty days after the date of its expiry, the driving licence shall be renewed with effect from the date of its renewal where the application for the renewal of a licence is made either one year prior to date of its expiry or within one year after the date of its expiry, the driving licence shall be renewed with effect from the date of its renewal
The grace period of 30 days for every driving licence has been omitted by the Amendment Act.

 

  •  NO FAULT LIABILITY TOWARDS THIRD PARTY ·Chapter X dealing with LIABILITY WITHOUT FAULT IN CERTAIN CASES from Section 140 to 144 is deleted.
  • Section 163A- Special provisions as to payment of compensation on structured formula basis along with Schedule Il as amended by Notification dt. 22.05.2018 is deleted.
  • A new Section 164 under Chapter Xl is introduced on No Fault Liability and the amount received is full & final –
Old Provision New Provision
Section 163A Section 164
Death : Rs.5,00,000 /- Death : Rs. 5,00,000 /-
Permanent Disability : Rs.500,000 /- x percentage disability as per Schedule I of the Employee’s Compensation Act, 1923 (8 of 1923)] : Provided that the minimum compensation in case of permanent disability of any kind shall not be less than fifty thousand rupees. Grievous Hurt : Rs. 2,50,000 /-
Minor Injury : Rs. 25,000 /- None

 

Chapter XI- Insurance of Motor Vehicles Against Third Party Risks

Section 145 -Definitions
Old Provision New Provision
(e) “property” includes goods carried in the motor vehicle, roads, bridges, culverts, causeways, trees, posts and mile-stones (g) “property” includes roads, bridges, culverts, causeways, trees, posts, milestones and baggage of passengers and goods carried in any motor vehicle
(g) “third party” includes the Government. (i) “third party” includes the Government, the driver and any other co-worker on a transport vehicle.
Section 146 i.e. Necessity for insurance against third party risk is kept as it is.

 

Chapter XI- Insurance of Motor Vehicles Against Third Party Risks

Section 147 -Requirements of policies and limits of liability
Old Provision New Provision
Limits of liability : Injury/Death-Unlimited TPPD- Rs. 6,000 /- Notwithstanding anything contained under any other law for the time being in force, for the purposes of third party insurance related to either death of a person or grievous hurt to a person, the Central Government shall prescribe a base premium and the liability of an insurer in relation to such premium for an insurance policy under sub-section (7) in consultation with the Insurance Regulatory and Development Authority.
A policy of Insurance issued before the commencement of the Motor Vehicles (Amendment) Act, 2019 shall be continued on the existing terms under the contract and the provisions of this Act shall apply as if this Act had not been amended by the said Act.
The provision with respect to covering liability under W.C. Act for named employees and provision of non-coverage of contractual liability is deleted

 

Chapter XI- Insurance of Motor Vehicles Against Third Party Risks

A new Section 149 is introduced -Settlement by insurance company and procedure therefore
(1 ) The insurance company shall, upon receiving information of the accident, either from claimant or through accident information report or otherwise, designate an officer to settle the claims relating to such accident.
(2) An officer designated by the insurance company for processing the settlement of claim of compensation may make an offer to the claimant for settlement before the Claims Tribunal giving such details, within thirty days and after following such procedure as may be prescribed by the Central Government. (3) If, the claimant to whom the offer is made under sub-section (2), — (a) accepts such offer, — (i) the Claims Tribunal shall make a record of such settlement, andsuch claim shall be deemed to be settled by consent; and (ii) the payment shall be made by the insurance company within a maximum period of thirty days from the date of receipt of such record of settlement; (b) rejects such offer, a date of hearing shall be fixed by the Claims Tribuna/to adjudicate such claim on merits.

 

Chapter XI- Insurance of Motor Vehicles Against Third Party Risks

Duty of insurers to satisfy judgments and awards against persons insured inrespect of third a risks
Old Provision New Provision
Section 149 Section 150
In addition to the earlier mentioned defences , Section 1 50 (2) adds following with respect to breach of a specified condition of policy :
Driving under the influence of alcohol or drugs as laid down in Section 185 There is non-receipt of premium as required under Section 64VB of the Insurance Act , 1938.
The aspect of pay & recovery as mentioned earlier in Section 149(5) is deleted in the Amendment Act.
It shall be the duty of the owner of the vehicle to furnish to the tribunal or court the information as to whether the vehicle had been insured on the date of the accident, and if so, the name of the insurance company with which it is insured.

 

Chapter XI- Insurance of Motor Vehicles Against Third Party Risks

Section 161 : Special provisions as to compensation in case of hit and run motor accident
Old Provision New Provision
Amount of Compensation : Death : Rs. 25,000 /- Grievous Hurt : Rs. 12,500 /- Amount of Compensation : Death : Rs. 2,00,000 /- Grievous Hurt : Rs. 50,000 /-
The Central Government may by notification frame scheme for payment of mentioned or such higher amount , specifying the manner in which it shall be administered.
There is no mention of Solatium Fund.
Section 162 is a new addition : Scheme for the cashless treatment of victims of the accident during the golden hour (time period lasting one hour following a traumatic injury)

 

Chapter XI- Insurance of Motor Vehicles Against Third Party Risks

Old Provision New Provision
Section 1 58(6): As soon as any information regarding any accident involving death or bodily injury to any person is recorded or report under this section is completed by a police officer, the officer-in-charge of the police station shall forward a copy of the same within thirty days from the date of recording of information or, as the case may be, on completion of such report to the Claims Tribunal having jurisdiction and a copy thereof to the concerned insurer, and where a copy is made available to the owner, he shall also within thirty days of receipt of such report, forward the same to such Claims Tribunal and insurer. Section 159 : The police officer shall, during the investigation, prepare an accident information report to facilitate the settlement of claim in such form and manner, within three months and containing such particulars and submit the same to the Claims Tribunal and such other agency as may be prescribed.

 

Chapter XI- Insurance of Motor Vehicles Against Third Party Risks

Scheme for Interim relief
Old Provision New Provision
Section 140 to 144 Section 164A, 164B
Death: Rs. 50,000 /-
Permanent Disablement: Rs. 25,000
>The Central Governmentmay make schemes

It shall also provide for procedure to recover funds disbursed under such scheme from the owner of the motor vehicle, where the claim arises out of the use of such motor vehicle >Creation of Motor Vehicle Accident Fund for providing interim relief, cashless payment during golden hour, payment to be made in hit & run cases, and for providing compulsory insurance cover to all road users in the territory of India.

 

Chapter XI- Insurance of Motor Vehicles Against Third Party Risks

Section 166: Application for compensation
Old Provision New Provision
No Time Limit for filing compensation No application for compensation shall be entertained unless it is made within six months of the occurrence of the accident
As per present law, a claim for personal injury would abate on the death of the claimant and would not survive to his estate, due to operation of section 306 of the Indian Succession Act. The claim would survive to the estate only if death had nexus with the injuries and only in such cases the legal heirs would be entitled to come on record and continue with the prosecution of the claim. The right of a person to claim compensation for injury in an accident shall, upon the death of the person injured, survive to his legal representatives, irrespective of whether the cause of death is relatable to or had any nexus with the injury or not.”.

 

 SECTION 173 – APPEAL  

Section 173
Old Provision New Provision
No appeal shall lie against any award of a Claims Tribunal if the amount in dispute in the appeal is less than ten thousand rupees No appeal shall lie against any award of a Claims Tribunal if the amount in dispute in the appeal is less than one lakh rupees

 

New definition- Golden Hour

Golden Hour
Old Provision New Provision
Not Present Section- 2 (12A)“Golden hour” means the time period lasting one hour following a traumatic injury during which there is highest likelihood of preventing death by providing prompt medical care;

 

New definition – Community service

Community Service
Old Provision New Provision
Not Present Section-2 (4a)“Community service” means an unpaid work which a person is required to perform as a punishment for an offence committed under this Act;’;

 

National Transportation Policy (New)

National transportation Policy
Old Provision New Provision
Not Present Section- 66A The Central Government may develop a National Transportation Policy consistent with the objects of this Act in concurrence with the State Governments and other agencies, for establishing a framework for grant of transport permits. The Section directs the Central Government to consult the State Governments before formulation of policy.

 

Protection of good Samaritans (New)

Protection of good Samaritans
Old Provision New Provision
Not Present Section 134A of The Bill defines “Good Samaritan” as a person, who, in good faith, voluntarily and without expectation of any reward or compensation renders emergency medical or non-medical care or assistance at the scene of an accident to the victim or transporting such victim to the hospital.

It makes provision for protection of Good Samaritans from unnecessary trouble or harassment from civil or criminal proceedings and empowers Central Government to frame Rules for their protections which will be a welcoming factor to get the medical aid to injured/ victim.

 

Scheme for Golden Hour (New)  

Golden Hour Scheme
Old Provision New Provision
Not Present Section- 162The insurance companies for the time being carrying on general insurance business in India shall provide in accordance with the provisions of this Act and the schemes made under this Act for treatment of road accident victims, including during the golden hour.

The Central Government shall make a scheme for the cashless treatment of victims of the accident during the golden hour and such scheme may contain provisions for creation of a fund for such treatment.

 Motor Accident Fund (New) 

Motor Accident Fund
Old Provision New Provision
Not Present Section- 164 BUnder Section 1 64B, Motor Vehicle Fund is to be augmented by a special tax or cess. The Fund is to be utilized for giving immediate relief to victims of motor accidents, GOLDEN HOUR and also hit and run cases and any other compensation which the Govt. would announce. The compensation paid out of the fund shall be deductible from the compensation which the victim may get in future from the Tribunal.

 

 Liability of Guardians in case of accidents by juveniles (New)

Liability of Guardians
Old Provision New Provision
Not Present Section- 199(A)Liability of Guardians in case of accidents by juveniles: Newly Section 199A proposes to impose liability on guardian or the owner of the vehicle responsible for an accident caused by a juvenile

 

Driver Refresher Training Course:

Driver Refresher Training Course
Old Provision New Provision
Not Present Section- Section 20 with Section 200

Driver Refresher Training Course:

Condition to undergo “driving refresher training course” for reviving license after suspension/ revocation under Section 19, and also for compounding of traffic offences under Section 200 has been introduced

 

OTHER IMPORTANT PROVISIONS

  • Section 66A: National Transportation Policy
  • Section 88A: Power of Central Government to frame schemes for inter- state permits
  • Section 134A: Protection of Good Samaritans
  • Section 198A: CONTRACTOR/CONSULTANT/CONCESSIONAIRE TO BE LIABLE IN CASE OF FAULTY ROAD DESIGN.
  • Section 199A: Liability of Guardians in case of accidents by juveniles
  • Driver Refresher Training Course
  • Licensing of Cab Aggregators
  • Section 215B: National Road Safety Board
  • Community Service as punishment
  • Recall of VEHICLES or COMPONENTS FOUND DEFECTIVE BY MANUFACTURERS.

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