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STATEMENT OF OBJECTS AND REASONS

Motor Vehicles Act, 1988 · source PDF pages 175–176

Source citation: STATEMENT OF OBJECTS AND REASONS, Motor Vehicles Act, 1988 (Act No. 59 of 1988), Source appendix, Central source snapshot, source PDF pp. 175–176; snapshot SHA256 09d232b162f6173ce47f18ed99be67576249ca8cdf1de0fedeebb103ef0773b2 (current applicability unverified)

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                              STATEMENT OF OBJECTS AND REASONS
   The Motor Vehicles Act, 1939 (4 of 1939), consolidates and amends the law relating to motor
vehicles. This has been amended several times to keep it up to date. The need was, however, felt that this
Act should, now inter aria, take into account also changes in the road transport technology, pattern of
passenger and freight movements, development of the road network in the country and particularly the
improve techniques in the motor vehicles management.
    2. Various Committees like National Transport Policy Committee, National Police Commission, Road
Safety Committee, Low Powered Two-wheelers Committee, as also the Law Commission have gone into
different aspects of road transport. They have recommended updating, simplification and rationalization
of this law. Several Members of Parliament have also urged for comprehensive review of the Motor
Vehicles Act, 1939, to make it relevant to the modern-day requirements.
   3. A Working Group was, therefore, constituted in January, 1984 to review all the provisions of the
Motor Vehicles Act, 1939 and to submit draft proposals for a comprehensive legislation to replace the
existing Act. This Working Group took into account the suggestions and recommendations earlier made
by various bodies and institutions like Central Institute of Road Transport Automotive Research
Association of India, and other transport organisations including the manufacturers and the general
public. Besides obtaining comments of State Governments on the recommendations of the Working
Group, these were discussed in a specially convened meeting of Transport Ministers of all States and
Union territories. Some of the more important modifications so suggested related for taking care of-
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      (a) the fast increasing number of both commercial vehicles and personal vehicles in the country;
      (b) the need for encouraging adoption of higher technology in automotive sector;
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      (c) the greater flow of passenger and freight with the least impediments so that islands of isolations
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   are not created leading to regional or local imbalances;
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      (d) concern for road safety standards, and pollution-control measures, standards for transportation
   of hazardous and explosive materials;
      (e) simplification of procedure and policy liberalizations for private sector operations in the road
   transport field; and
      (f) need for effective ways of tracking down traffic offenders.
   4. The Supreme Court in M. K. Kunhimohammed vs. P. A. Ahmedkutty, A.I.R. 1937 S.C. page 2158,
has made certain suggestions to raise the limit of compensation payable as a result of motor accidents is
respect of death and permanent disablement in the event of there being no proof of fault on the part of the
person involved in the accident and also in hit and run motor accidents and remove certain disparities in
the liability of the insurer to pay compensation depending upon the class or type of vehicles involved in
the accident. The above suggestions made by the Supreme Court have been incorporated in the Bill.
  5. The proposed legislation has been prepared in the light of the above background. Some of the more
important provisions of the Bill provide for the following matters, namely:—
      (a) rationalization of certain definitions with additions of certain new definitions of new types of
   vehicles:
      (b) stricter procedures relating to grant of driving licences and the period of validity thereof;
      (c) laying down of standards for the components and parts of motor vehicles;
      (d) standards for anti-pollution control devices;
      (e) provision for issuing fitness certificates of vehicles also by the authorised testing stations;
      (f) enabling provision for updating the system of registration marks;
     (g) liberalised schemes for grant of stage carriage permits on non-nationalised routes, all-India
   Tourist permits and also national permits for goods carriages;
      (h) administration of the Solatium Scheme by the General Insurance Corporation;

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   (i) Provision for enhanced compensation in cases of “no fault liability” and in hit and run motor
accidents;
   (j) provision for payment of compensation by the insurer to the extent of actual liability to the
victims of motor accidents irrespective of the class of vehicles;
   (k) maintenance of State registers for driving licences and vehicle registration:
   (l) constitution of Road Safety Councils.
6. The Bill also seeks to provide for more deterrent punishment in the cases of certain offences.
7. The Notes on clauses explain the provisions of the Bill.
8. The Bill seeks achieve the above objectives.




                                                                                       RAJESH PILOT.

     NEW DELHI;
   The 9th May, 1988.
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