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Key Provisions of the Motor Vehicles (Amendment) Bill, 2016

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Given the growing number of road fatalities witnessed in India annually, the Ministry of Road Transport and Highways recently constituted a Commission whose purpose was to suggest modifications and additions to the existing Act.

The Committee comprised of 18 State Transport Ministers and their recommendations were constituted into the Motor Vehicles (Amendment) Bill, 2016 which was presented before Parliament in August 2016.

Some of the salient features of the Bill are an emphasis on safety of motorists as well as pedestrians along roads and highways in India.

Some of the key provisions of the Motor Vehicles (Amendment) Bill, 2016 are as follows:

Limit on insurer’s liability

As per the proposed amendment, the insurer’s liability will be reduced with regard to third party claims. According to the present Act, the insurer’s liability regarding compensation claims in case of death or bodily harm due to motor vehicle use is unlimited.

As per the new Amendment, there will be a cap on compensation up to Rs.5 lakh in case of bodily harm and Rs.10 lakh in case of death. In other words, claimants will be able to receive a maximum of Rs.10 lakh in case of death and Rs.5 lakh in case of bodily harm or injury arising out of operating a motor vehicle under third party claim.

As per the new recommendation, the Central Government can fix the premium as well as the liability for insurers in consultation with the IRDA (Insurance and Regulatory Development Authority of India).

As per this provision, the insurer could be liable to pay less than the ceiling rates of Rs.10 and Rs.5 lakh depending on the case.

Hit and Run Scheme

As per the recommendations under the Amendment Bill, compensation for victims of hit and run cases (under Section 161 of the current Act) has been increased from Rs.25,000 in case of death to Rs.2 lakhs. In case of bodily injury, the compensation amount has been increased from Rs.12,500 to Rs.50,000.

Thus hit and run victims stand to receive a higher compensation for their injuries or in case of demise due to a hit and run.

Motor Vehicle Accident Fund:

The Committee has made a recommendation to set up a Motor Vehicle Accident Fund under Section 164B. This fund will be used to provide immediate relief to motor vehicle accident victims and hit cases. The funds provided would be deductible from the compensation paid out to the victim by a tribunal at a later date.

The money to set up the fund would be provided through levying a cess or tax specially delineated for this purpose.

Community Service as Punishment:

The Committee has recommended the enforcement of community service as a means of punishment in cases where the violation is not of a very serious nature. As per the recommendation, community service would be unpaid social service work to be undertaken by the individual as punishment for an offence.

This particular recommendation is to bring in an element of corrective sanctions that are not incarceration or financial penalties.

Penalties for Road Violations:

The Committee has recommended increasing the fines and penalties for road traffic violations, in the hope they will serve as a deterrent to offenders. As per the recommendations, the penalty for driving without a licence will be a fine of Rs.5,000 compared to the existing fine of Rs.500.

Drunken drivers would have to pay Rs.10,000 compared to the current fine of Rs.2,000.

Driving without a seatbelt would incur a fine of Rs.1,000 as opposed to the current fine of Rs.100.

The complete list of changes in penalties for road traffic violations can be found on the official website of the Ministry of Road Transport and Highways.

New Laws Concerning Juveniles:

Given the rising number of cases involving juveniles caught driving or riding, the Committee has recommended that juvenile violators be tried under the Juvenile Justice Act.

If convicted, the motor vehicle’s registration would be cancelled.

This rule has been recommended as there have been complaints that the juvenile offenders were not adequately punished for their offences, as under the existing law, only the vehicle owner is penalised for any violation.

Protection of Good Samaritans:

The Committee has made provision for the safeguarding of Good Samaritans, who are defined as ‘individuals who render emergency service and assistance to road accident victims without expectation of a reward or compensation’.

As per the provisions of the Bill, such individuals are provided protection from harassment through civil or criminal proceedings, with the Central Government empowered to enact additional legislation in this regard.

Given above are some of the salient points made in the report and recommendations submitted by the Committee to the Ministry. The Bill has made several noteworthy provisions such as the trying of juveniles for road offences and hiking the penalties for road violations.

They have been included in the Bill, which is awaiting parliamentary approval before it is enacted as a law.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

Claim Reviews

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  • Tata AIG Car Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    It has been a good insurance policy and the premium has been paying annually. The premium amount has been nominal and the payment method has been easy. I had not yet made any claims so far and there has been cashless garages available as well....
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    , bangalore
    Reviewed on Dec 14, 2018
  • Universal Sompo Car Insurance
    " Good protection for four wheeler"
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    All policies with Unviersal sompo, whenever I call they respond well on the toll free helpline. The policy covers fully my car compared to other insurer, the beginning it was zero depreciation plan, they gave me the insured declared value.
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    , bangalore
    Reviewed on Dec 14, 2018
  • L and T Car Insurance
    "Its Good"
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    The dealer gave me L & T general insurance policy for my car the premium amount is nominal for the tenure of one year, I have old Tokyo Innova, hence I took comprehensive and third party cover, they do have road side assistance and 24 hours services on time.
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    , hyderabad
    Reviewed on Dec 14, 2018
  • ICICI Lombard Car Insurance
    "Good protection for four wheeler"
    0.5 5.0/5 "Blown Away!"
    From ICICI lombard I have taken car insurance for Hyundai I20, first time when I paid the around Rs. 25,000 when it was new car, now recently I paid is around Rs. 17,000 now its been 2.5 years old. The plan is called zero depreciation, with road side assistance, 24 hours services.
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    , hyderabad
    Reviewed on Dec 14, 2018
  • Bajaj Allianz Car Insurance
    "Low premium with better benefits"
    0.5 5.0/5 "Blown Away!"
    One more policy taken for my another car its Maruthi dezire I paid the premium around Rs. 4000 its a old car, around 6 to 7 years, I have comprehensive plan its not zero depreciation plan. The customer service is good the premium is low and the max cover is nice.
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    , new delhi
    Reviewed on Dec 13, 2018
  • Bajaj Allianz Car Insurance
    "Low premium with better benefits"
    0.5 5.0/5 "Blown Away!"
    My both the polices are insured with Bajaj Allianz, I have taken one policy for my Maruthi Ciaz car, I paid the premium was around Rs. 8000, I have taken the comprehensive it covers for the loss, damage, other natural disaster, hence I am fine with them.
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    , new delhi
    Reviewed on Dec 13, 2018
  • Tata AIG Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I hold a car insurance with TATA AIG general insurance from last 10 months, a premium of Rs 16000 has to be paid for this insurance policy. There was no claim experience so far with this insurance and this policy has full coverage with 0% depreciation.
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    , bangalore
    Reviewed on Dec 11, 2018
  • Tata AIG Car Insurance
    "Complete protection with Tata Aig"
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    I approached Tata Aig through their agent, he have taken initiative to generate the policy on time, I have received the policy document on time, the premium amt around Rs. 11k for one year, I have road side assistance with engine protection, tier cover with best insured value.
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    , keonjhar
    Reviewed on Dec 10, 2018
  • Royal Sundaram Car Insurance
    "Good Product"
    0.5 4.0/5 "Great!"
    For my Maruthi car I took Royal sundaram general insurance through dealer I have approached the premium is reasonable, I don't think its a comprehensive plan. Once I had claim I met with the accident, there was a car damage, they gave 70% of claim, remaining I paid from my end.
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    , bangalore
    Reviewed on Dec 07, 2018
  • Reliance General Car Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    RELIANCE GENERAL INSURANCE is the insurer where i have taken my car insurance and the premium i paid which is nominal added on that the IDV value is also sufficient with this policy. The policy coverage is for bumper to bumper for this policy.
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    , hyderabad
    Reviewed on Dec 07, 2018
  • SBI General Car Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I had a claim of 44k with the SBI GENERAL INSURANCE where i have taken the card insurance and the claim is of reimbursement and i got within the one day. The premium is nominal and the IDV is nominal. The coverage is for bumper to bumper. The process is good with this policy.
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    , hyderabad
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  • ICICI Lombard Car Insurance
    "Good Protection for four wheeler"
    0.5 4.0/5 "Great!"
    The car policy with ICICI lombard is good and they are economical on the cost wise, I took policy for one year I took 100% its zero depreciation. They gave me best insured value based on the age of vehicle, they have ncb features and they many service centers too.
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    , gurgaon
    Reviewed on Dec 05, 2018
  • Bajaj Allianz Car Insurance
    "Good claim process with fast service"
    0.5 4.0/5 "Great!"
    The premium amt is good in Bajaj Allianz and economical too, I paid Rs. 25k for one year. I have Hyundai I ton card its 3 years old, they gave me best insured declared amount, I got the papers on time, my claim exp is good, car got damaged and replaced and gave it on time, even they have lined with many service centers.
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    , bangalore
    Reviewed on Dec 05, 2018
  • ICICI Lombard Car Insurance
    "Quick policy"
    0.5 5.0/5 "Blown Away!"
    I have been renewing the policy for 4 years with ICICI Lombard. The policy was given by dealer when i purchase the policy and i'm continuing the policy without any reason. The claim experience was fine. I have got the coverage amount of Rs. 9 lakhs and i have got the claim amount of RS. 40000. This policy covered with bumper to bumper facility. I have got the claim within 5 days.
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    , chennai
    Reviewed on Dec 05, 2018
  • Universal Sompo Car Insurance
    "Good Car Insurance policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance policy was taken 2 years ago with Universal Sompo. I have been renewing the policy with the same company. I have paid the premium amount of Rs. 4000. This policy has been covered for 100%. They have given me a car value of Rs. 1.90 lakhs.They have offered me a facilities of road side assistance and bumper to bumper. I have no claim experience so far.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Dec 03, 2018
  • Bajaj Allianz Car Insurance
    "Its Good"
    0.5 4.0/5 "Great!"
    Cost of the car policy is good in Bajaj Allianz. I have Maruthi card they best insured value based on the age. I don't have any claim experience. The insurance company gave me Rs. 2.5 lakhs for one year, third party cover and personal accidental cover is good.
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    , bangalore
    Reviewed on Dec 03, 2018
  • New India Car Insurance
    "Good Experience"
    0.5 5.0/5 "Blown Away!"
    In 10 years of experience I didn't face any claim. I have wagon R, the premium cost was economical, I paid around Rs. 5000 for one year, they gave me the comprehensive 100% protection plan, they got tie up with the dealer and they do have ncb features.
    Was this review helpful? 2
    , mumbai
    Reviewed on Dec 03, 2018
  • United India Car Insurance
    "Good car insurance policy"
    0.5 5.0/5 "Blown Away!"
    Since its a new car, they have given me a a zero depreciation policy. The dealer has recommended me about this car insurance policy when i purchase my car. I have paid the premium amount of Rs. 28000. They have not given me a road side assistance facility but bumper to bumper facility is available. More garages are available in my location.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Dec 03, 2018
  • ICICI Lombard Car Insurance
    "Better"
    0.5 4.5/5 "Excellent!"
    My car insurance was taken with ICICI Lombard and it was offered by the showroom. They are giving zero depreciation and don't know about the other offers. The premium is included in the car price. The customer service is good. They have sent the insurance papers on time.
    Was this review helpful? 0
    , new delhi
    Reviewed on Dec 02, 2018
  • review Car Insurance
    "Value of money"
    0.5 4.0/5 "Great!"
    4 years back, i have bought my car insurance policy with Bharti Axa. Somebody suggested me about this car insurance policy. The premium amount is less comparatively less when i compared with other companies. I'm happy about the coverage value they have provided to me. I have not claimed anything in this policy.
    Was this review helpful? 0
    , new delhi
    Reviewed on Dec 02, 2018
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