Top News
Next Story
NewsPoint

Govt proposes changes to MV Act, 12-month deadline for accident claims, legal clarity for commercial use of two-wheelers

Send Push
NEW DELHI: The road transport ministry has proposed significant amendments to the Motor Vehicle Act , including a 12-month deadline for Motor Accident Claims Tribunals (MACTs) to resolve claims and allowing commercial use of motorcycles by including them under ‘contract carriage’, allowing their use by aggregators such as Rapido and Uber.

While current law permits the use of all vehicles under contract carriage — vehicles hired for transporting passengers — the proposed amendment aims to provide legal clarity regarding motorcycles. This comes in the wake of some states restricting the use of two-wheelers for ride-hailing services.

Additionally, the ministry is revising the ‘ cab aggregators guidelines’ to incorporate motorcycles, with a focus on enhancing passenger safety.

Among the 67 proposed amendments, expected to be tabled in the winter session of Parliament, are a new definition of ‘buses of educational institutions’ and a proposal to categorise light motor vehicles (LMVs) based on their gross weight. For the first time, a definition of three-wheelers has also been suggested. These changes follow a Supreme Court case.

One of the key amendments seeks to redefine the ‘educational institution bus’ as any vehicle carrying more than six persons, excluding the driver, owned, leased, or hired by the institution for transporting students and staff. The ministry also proposes doubling penalties for traffic violations committed by such buses to increase accountability of drivers and employers.

Govt is pushing for swift parliamentary approval to meet the assurance given to the SC, which is examining whether a person with a LMV licence can drive a transport vehicle with an unladen weight of up to 7,500 kg, known as ‘goods LMVs’.

Another proposed amendment would encourage states to expedite the approval process for cab aggregators, automated test stations (ATS), and ‘accredited driver training centres’, requiring decisions within six months of application submission. If states fail to act within this timeframe, central govt guidelines would take precedence.

In a bid to address juvenile involvement in driving electric two-wheelers, the ministry has proposed allowing individuals in 16-18 age group to drive motorcycles with an engine capacity of up to 50cc and motor power not exceeding 1,500 watts (for electric vehicles), with a maximum speed of 25 km/h.

“The provisions are good for easy operation of transport vehicles and will boost the business of two-wheelers. These will also reduce anomalies in EVs and driving licensing. However, there is not much focus on reducing crashes. The provision of mandatory driving training before issuance of driving licence should be incorporated,” said transport expert Anil Chhikara.

The main aim of proposing a 12-month timeline for MACTs is to ensure faster compensation for victims and their families. The proposed amendment also requires tribunals to provide a written explanation if they are unable to meet this deadline. Additionally, the amendment allows tribunals to accept claims within one year if the applicant can provide sufficient justification for not filing within six months.

The draft also mandates that states consult highway authorities before lowering speed limits on national highways (NHs) within their jurisdiction. At present, the speed limit for cars is set at 100 km/h on NHs and 120 km/h on expressways, but arbitrary reductions by states have led to confusion among drivers unfamiliar with these stretches.
Explore more on Newspoint
Loving Newspoint? Download the app now