Motor Vehicles Act, 1988
Some of the more important provisions of the Bill provide for the following matters, namely :- (a) rationalization of certain definitions with additions of certain new definitions of new types of vehicles; (b) stricter procedures relating to grant of driving licences and the period of validity thereof; (c) laying down of standards for the components and parts of motor vehicles; (d) standards for anti-pollution control devices; (e) provision for issuing fitness certificates of vehicles also by the authorised testing stations; (f) enabling provision for updating the system of registration marks; (g) liberalised schemes for grant of stage carriage permits on non nationalised routes, all-India Tourist permits and also national permits for goods carriages; (h) administration of the Solatium Scheme by the General Insurance Corporation; (i) provision for enhanced compensation in cases of “no fault liability” and in hit and run motor accidents; (j) provision for payment of compensation by the insurer to the extent of actual liability to the victims of motor accidents irrespective of the class of vehicles; (k) maintenance of State registers for driving licences and vehicle registration; (l) constitution of Road Safety Councils. 6. The Bill also seeks to provide for more deterrent punishment in the cases of certain offences. 7. The Notes on clauses explain the provisions of the Bill. Amendment Act 54 of 1994 - Statement of Objects and Reasons. - The Motor Vehicles Act, 1988 (59 of 1988) consolidated and rationalised various laws regulating road transport. The Act came into force with effect from 1st July, 1989 replacing the Motor Vehicles Act, 1939. 2. After the coming into force of the Motor Vehicles Act, 1988, Government received a number of representations and suggestions from the state govt. transport operators and members of public regarding the inconvenience faced by them because of the operation of some of the provisions of the 1988 Act. A Review Committee was, therefore, constituted by the Government in March, 1990 to examine and review the 1988 Act. 3. The recommendations of the Review Committee were forwarded to the State Governments for comments and they generally agree with these recommendations. The Government also considered a large number of representations received, after finalisation of the Report of the Review Committee, from the transport operators and public for making amendments in the Act. The draft of the proposals based on the recommendation of the Review Committee and representations from the public were placed before the Transport Development Council for seeking their views in the matter. The important suggestions made by the Transport Development Council relate to, or are on account of, - (a) The introduction of newer type of vehicles and fast increasing number of both commercial and personal vehicles in the country. (b) Providing adequate compensation to victims of road accidents without going into longdrawn procedure; (c) Protecting consumers' interest in Transport Sector; (d) Concern for road safety standards, transport of hazardous chemicals and pollution control; (e) Delegation of greater powers to State Transport Authorities and rationalising the role of public authorities in certain matters; (f) The simplification of procedures and policy liberalisation in the field of Road Transport; (g) Enchancing penalties for traffic offenders.