Motor Vehicle Amendment Bill 2019 introduced

Now cashless treatment for RTA victims, compulsory insurance and protection of good Samaritans

The Motor Vehicles (Amendment) Bill, 2019 was introduced in Lok Sabha on Monday. It has been passed in the Lok Sabha and is pending in the Rajya Sabha.

The new Bill has proposed some radical amendments such as imposing hefty penalties for violation of traffic rules and holding the owners of the vehicle or guardian of the juvenile liable in case of juvenile offences. It provides for protection of Good Samaritans and empowers the Central Government to recall vehicles which do not meet standards.

The compensation and insurance provisions in case of motor vehicle accidents have also been modified. The new Bill provides for cashless treatment for RTA victims, compulsory insurance and good Samaritans

  • Compensation for road accident victims: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 central government may also make a scheme for providing interim relief to claimants seeking compensation under third party insurance.  The Bill increases the minimum compensation for hit and run cases as follows: (i) in case of death, from Rs 25,000 to two lakh rupees, and (ii) in case of grievous injury, from Rs 12,500 to Rs 50,000.
  • Compulsory insurance:The Bill requires the central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India.  It will be utilised for: (i) treatment of persons injured in road accidents as per the golden hour scheme, (ii) compensation to representatives of a person who died in a hit and run accident, (iii) compensation to a person grievously hurt in a hit and run accident, and (iv) compensation to any other persons as prescribed by the central government.  This Fund will be credited through: (i) payment of a nature notified by the central government, (ii) a grant or loan made by the central government, (iii) balance of the Solatium Fund (existing fund under the Act to provide compensation for hit and run accidents), or (iv) any other source as prescribed the central government.
  • Good Samaritans: 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 assistance must have been (i) in good faith, (ii) voluntary, and (iii) without the expectation of any reward.  Such a person will not be liable for any civil or criminal action for any injury to or death of an accident victim, caused due to their negligence in providing assistance to the victim.
  • Recall of vehicles: 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: (i) reimburse the buyers for the full cost of the vehicle, or (ii) replace the defective vehicle with another vehicle with similar or better specifications.

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