New Traffic Law with Heavy Fine- Some Points to Know

Tax Alert India
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In an attempt to improve road safety in the country, the Cabinet has approved of the Motor Vehicle (Amendment) Bill.

Key takeaways from Motor Vehicle amendment bill are as follows:

1. Compensation for Hit and Run cases proposed to be increased from Rs. 25,000 to Rs. 2,00,000. Bill also includes provision for payment of compensation upto Rs. 10 lakh in road accident fatalities.

2. Hefty penalties are being proposed for traffic violations such as juvenile driving, drunken driving, driving without licence, not wearing helmets and seatbelts, dangerous driving, over-speeding, overloading, etc.
Nature
Old penalty (in Rs.)
Proposed Penalty (in Rs.)
General
100
500
Road Regulation violation
100
500
Overloading
2,000
20,000
Disobedience of orders of authorities
500
2000
Vehicle without permit
Upto 5,000
Upto 10,000
Driving without licence
500
5,000
Drunken driving
2,000
20,000
Travelling without ticket
200
500
Aggregators (violations of licensing norms)
New
25,000 to 1,00,000
3. Guardian or owner shall be deemed to be guilty in cases of offences by the Juveniles. They will have to pay penalty of Rs. 25,000 apart from undergoing 3 years imprisonment. The juvenile will be tried under Juvenile Justice Act. Registration of his/her motor vehicle will be cancelled.

4. It would enable online learning licenses, increase validity period for driving licenses and do away with the requirement of educational qualifications for transport license.
5. It proposes to have automated fitness testing for the transport vehicles with effect from 1 October 2018.
New Traffic Law with Heavy Fine- Some Points to Know

6. To improve registration process for new vehicles, registration at the end of the dealer is being enabled and restrictions have been imposed on temporary registration.

7. It proposes to improve the transport scenario in the country by permitting the States to grant exemptions in stage carriages and contract permits for promoting rural transport, public transport, and last mile connectivity and for passenger convenience and road safety.

8. It proposes the State Government to regulate the activities in a public places for pedestrians and means of transport.
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