It was introduced in parliament by the Minister for Road Transport and Highways Nitin Gadkari.
The Bill seeks to amend the Motor Vehicles Act, 1988 to provide for road safety.
The Act provides for grant of licenses and permits related to motor vehicles, standards for motor vehicles, and penalties for violation of these provisions.
Important Changes
The central government will develop a scheme for cashless treatment of road accident victims during golden hour.
The Bill defines golden hour as the time period of up to one hour following a traumatic injury, during which the likelihood of preventing death through prompt medical care is the highest.
The Bill increases the minimum compensation for hit and run cases as follows
In case of death, from Rs 25,000 to two lakh rupees, and
In case of grievous injury, from Rs 12,500 to Rs 50,000.
The Bill requires the central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India.
The Bill defines a good samaritan as a person who renders emergency medical or non-medical assistance to a victim at the scene of an accident.
The Bill allows the central government to order for recall of motor vehicles if a defect in the vehicle may cause damage to the environment, or the driver, or other road users.
The manufacturer of the recalled vehicle will be required to
reimburse the buyers for the full cost of the vehicle, or
replace the defective vehicle with another vehicle with similar or better specifications.
The central government may develop a National Transportation Policy, in consultation with state governments.
The Bill provides for a National Road Safety Board, to be created by the central government through a notification.
The Bill defines aggregators as digital intermediaries or market places which can be used by passengers to connect with a driver for transportation purposes (taxi services).
These aggregators will be issued licenses by state.
Further, they must comply with the Information Technology Act, 2000.
The Bill increases penalties for several offences under the Act.
For example, the maximum penalty for driving under the influence of alcohol or drugs has been increased from Rs 2,000 to Rs 10,000.
If a vehicle manufacturer fails to comply with motor vehicle standards, the penalty will be a fine of up to Rs 100 crore, or imprisonment of up to one year, or both.
If a contractor fails to comply with road design standards, the penalty will be a fine of up to one lakh rupees.
The central government may increase fines mentioned under the Act every year by up to 10%.