Motor Vehicles Act, 1988
The Bill inter alia provides for - (a) modification and amplification of certain definitions of new type of vehicles ; (b) simplification of procedure for grant of driving licences; (c) putting restrictions on the alteration of vehicles; (d) certain exemptions for vehicles running on non-polluting fuels; (e) ceilings on individuals or company holdings removed to curb “benami” holdings; (f) states authorised to appoint one or more State Transport Appellate Tribunals; (g) punitive checks on the use of such components that do not conform to the prescribed standards by manufactures, and also stocking / sale by the traders; (h) increase in the amount of compensation of the victims of hit and run cases; (i) removal of time limit for filling of application by road accident victims for compensation; (j) punishment in case of certain offences is made stringent; (k) a new pre-determined formula for payment of compensation to road accident victims on the basis of age / income, which is more liberal and rational. 5. The Law Commission in its 119th Report had recommended that every application for a claim be made to the Claims Tribunal having jurisdiction over the area in which the accident occurred or to the Claims Tribunal within the local limits of whose jurisdiction the claimant resides or carries on business or within the local limits of whose jurisdiction the defendant resides, at the option of the claimant. The bill also makes necessary provision to give effect to the said recommendation. Amendment Act 27 of 2000 — Statement of Objects and Reasons. — The Motor Vehicles Act, 1988 consolidated and rationalised various laws regulating road transport. The said Act was amended in 1994. 2. Further amendments in the aforesaid Act have become necessary so as to reduce the vehicular pollution and to ensure the safety of the road users. It is, therefore, proposed to prohibit alteration of vehicles in any manner including change of tyres of higher capacity. However, the alteration of vehicles with a view to facilitating the use of eco-friendly fuel including Liquefied Petroleum Gas (LPG) is being permitted. Further, it is proposed to confer powers on the Central Government to allow the alteration of vehicles for certain specified purposes. 3. At present, the educational institutions are not required to obtain permits for the operation of buses owned by them. It is proposed to bring the buses run by these institutions within the purview of the aforesaid Act by requiring them to obtain permits. 4. It is also proposed to allow renewal of permits, driving licences and registration certificates granted under the Motor Vehicles Act, 1939 to be renewed under the Motor Vehicles Act, 1988, by inserting new section 217 - A. 5. The proposed amendments are essential in the overall interest of securing road safety and maintaining a clean environment. Amendment Act 39 of 2001 - Statement of Objects and Reasons. — The Motor Vehicles Act, 1988 (59 of 1988) is a Central legislation through which the road transport is regulated in the country. By the Motor Vehicles (Amendment ) Act, 1994, inter alia, amendments were made for make special provisions under sections 66 & 67 so as to provide that vehicles operating on eco-friendly fuels shall be exempted from the requirements of permits and also the owners of such vehicles shall have the discretion to fix fares and freights for carriage of passengers and goods. The intention in bringing the said amendments was to encourage the operation of vehicles with such eco-friendly fuels. 2. However, it has been observed that during the last several years, not only the supply of eco-friendly fuels like CNG has increased tremendously, a large number of vehicles have come on the road which in terms of sections 66 and 67, as amended by the Motor Vehicles ( Amendment) Act, 1994, are operating without any requirement of permits and are, therefore, not subject to any control of the State Governments. The number of such vehicles is likely to further increase substantially. 3. The aforesaid situation is likely to lead to indiscipline on the road and consequent increase in the road accidents. It is, therefore, considered essential to remove exemption provided under sections 66 and 67 of the said Act to CNG operated vehicles so that vehicles which operate on eco-friendly fuels are also covered by the terms and conditions applicable to all other vehicles. 4. The proposed amendments are essential in the overall interest of securing road safety and maintaining a clean environment. 5. The Bill seeks to achieve the above object. CHAPTER - I PRELIMINARY