Motor Vehicle Amendment Act 2019-it’s Implications

Posted on: Mar 16, 2020 | 3 mins | Written by: HDFC ERGO Team

Motor Vehicle Amendment Act 2019-it’s Implications

Motor Vehicle Amendment Act 2019 has been implemented nationwide from September 1, 2019. The act aims to improve the road safety in the country, it has increased fines on many traffic violations to check the road accidents and educate the drivers on the importance of MOTOR INSURANCE. It is mandatory as per the Motor Vehicle Act 1988 for every motorist to have third party car insurance at all times. The state of Orissa has aimed at strict implementation of the act and it is expected that many other states would follow.

Provisions of Motor Vehicle Amendment Act in Brief

Under section 196 of the Motor Vehicle Act, 2019 driving without Insurance will be fined Rs 2000
Bill has increased minimum compensation for hit and run cases (i) in event of death, from Rs 25,000 to two lakh rupees, and (ii) in event of grievous injury, from Rs 12,500 to Rs 50,000.
Driving without driving license would now be fined at Rs 5000 instead of 500 earlier.
Driving without Helmets would get you a fine of Rs 1000 and disqualification for 3 months for license.
Driving without seatbelt would attract a fine of Rs1000, it was Rs 100 earlier
Dangerous driving would now be fined at Rs 5000, it was Rs 1,000 earlier
Drunken Driving would be fined at Rs 10,000
Overloading of two wheelers would be fined at Rs 2,000 and disqualification for 3 months of license
Not giving way to emergency vehicles can fetch you a fine of Rs 10,000
Government can recall the vehicles whose components or engine do not meet required standards.

How Does Motor Vehicle Amendment Act Affect You?

The act has important message for errant drivers who drive their vehicle without a valid motor insurance and license. Driving errors and not following traffic rules can make a huge dent in your monthly budget. It has provisions for traffic regulations, VEHICLE INSURANCE, registration of motor vehicles, controlling permits and penalties. Any claim petition for filing insurance claims has to be filed within six months of accident.

It is upon us to be responsible citizen and make sure that we have valid car insurance /bike insurance at all times, also being mandatory requirement under Indian law one should ensure that they renew their motor insurance on time so that your vehicle has continued insurance coverage. By not having valid motor insurance, first of all you break the law and attract fine under the Motor Vehicle Amendment Act, also in event of accident you would have to pay the claims raised by the third party from your own pocket.

Motor Vehicle Amendment Act through imposition of heavy fines has tried to nudge citizens to follow traffic rules and to reduce the number of road fatalities.

This blog has been written by

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

Mr.S. Gopalakrishnan recommends"HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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