Table of Contents

Introduction

The Motor Vehicles Act, 1988, is a comprehensive law that consolidates and amends the rules and regulations related to motor vehicles in India. Enacted by the Parliament of India, this Act came into force on July 1, 1989, and extends to the entire country.

Key Elements of The Motor Vehicle Act

  1. Motor Vehicle: 

Any mechanically propelled vehicle adapted for use upon roads, excluding vehicles running on fixed rails or vehicles used only in factories or enclosed premises.

  1. Driver: 

Includes the person who acts as the steersman of a vehicle drawn by another motor vehicle.

  1. Conductor: 

A person engaged in collecting fares, regulating passenger entry and exit, and performing other prescribed functions in a stage carriage (a vehicle carrying passengers for separate fares).

  1. Goods Carriage: 

Any motor vehicle constructed or adapted solely for carrying goods.

  1. Public Service Vehicle: 

Any motor vehicle used or adapted for carrying passengers for hire or reward, including maxi cabs, motorcabs, contract carriages, and stage carriages.

The Act covers various aspects related to motor vehicles, such as registration, licensing of drivers and conductors, permits for transport vehicles, traffic regulation, insurance requirements, and penalties for violations.

One notable addition to the Act is the inclusion of provisions for e-carts and e-rickshaws. These are special purpose battery-powered vehicles with three wheels, used for carrying goods or passengers for hire or reward. The Act specifies that these vehicles must be manufactured, constructed, and maintained according to prescribed specifications.

Licensing Requirements for Drivers

According to the Motor Vehicles Act, 1988, it is mandatory for anyone driving a motor vehicle on public roads in India to hold a valid driving licence. Let’s understand the key provisions regarding this requirement:

Necessity for a Driving License (Section 3)

  • No person shall drive a motor vehicle in any public place unless they hold an effective driving licence authorising them to drive that particular vehicle.
  • For driving a transport vehicle (like buses, trucks, etc.), the driving licence must specifically entitle the person to drive that category of vehicle.
  • However, an exception is made for motor cabs or motorcycles hired for personal use or rented under specific schemes.

Age Limits for Driving (Section 4)

  • No person under the age of 18 years is allowed to drive any motor vehicle in a public place.
  • There is a provision allowing those above 16 years of age to drive motorcycles with an engine capacity not exceeding 50cc and without gear.
  • For driving transport vehicles, the minimum age limit is 20 years.
  • No learner’s licence or driving licence shall be issued to any person who does not meet the age eligibility criteria for the specific class of vehicle.

Responsibilities of Vehicle Owners (Section 5)

  • Vehicle owners or persons in charge of a motor vehicle must not cause or permit any individual who does not meet the requirements of Sections 3 and 4 to drive the vehicle.

These provisions aim to ensure that only qualified and legally eligible individuals operate motor vehicles on public roads, promoting road safety and accountability.

It is crucial for all drivers to understand and comply with the licensing requirements outlined in the Motor Vehicles Act, 1988. Driving without a valid licence can lead to penalties and legal consequences.

Form and Contents of Driving Licences: 

Section 10 of the Motor Vehicles Act outlines the form and contents of driving licences in India. Every learner’s licence and driving licence, except those issued under specific provisions, shall be in a prescribed form and contain essential information as determined by the Central Government. The licences are categorised based on the classes of motor vehicles the holder is authorised to drive, including:

  1. Motorcycles without gears
  2. Motorcycles with gears
  3. Invalid carriages (vehicles for disabled persons)
  4. Light motor vehicles (cars, jeeps, etc.)
  5. Transport vehicles (buses, trucks, etc.)
  6. Road rollers
  7. Any other specified vehicle description

Additions to Driving Licences: 

The act provides provisions for adding new classes or descriptions of motor vehicles to an existing driving licence. Section 11 allows individuals who hold a valid driving licence and are not disqualified from obtaining another licence to apply for additional vehicle classes or descriptions. The application process involves submitting the prescribed form, documents, and fees to the licensing authority within the area of residence or business.

Licensing and Regulation of Driving Schools

Recognizing the importance of proper driving instruction, Section 12 empowers the Central Government to establish rules for licensing and regulating driving schools or establishments that provide instruction in driving motor vehicles. These rules cover various aspects, including:

  1. Licensing procedures, including grant, renewal, and revocation
  2. Supervision and monitoring of driving schools
  3. Application forms and licence formats
  4. Fees for licensing
  5. Conditions for granting licences
  6. Appeals against refusal, renewal, or revocation of licences
  7. Establishment and maintenance requirements for driving schools
  8. Curriculum, syllabus, and duration of driving courses
  9. Equipment and infrastructure requirements (including dual-control vehicles)
  10. Premises suitability and facilities
  11. Qualifications and experience of driving instructors
  12. Inspection and record-keeping requirements
  13. Financial stability of driving schools
  14. Issuance of driving certificates and their format

Driving Licence

Extent and Currency of Driving Licences

The Motor Vehicles Act ensures the nationwide validity of driving licences issued within India. Section 13 states that a learner’s licence or a driving licence issued under the act is effective throughout the country. Section 14 outlines the validity periods for different types of licences:

  1. Learner’s licence: Valid for six months from the date of issue.
  2. Driving licence for transport vehicles: Valid for three years, with a provision for renewal subject to completing a one-day refresher course for drivers carrying dangerous or hazardous goods.
  3. Driving licence for non-transport vehicles:
    • For holders below 50 years: Valid for 20 years or until the holder turns 50, whichever is earlier.
    • For holders aged 50 or above: Valid for five years, subject to payment of prescribed fees.

Renewal of Driving Licences

Section 15 covers the renewal process for driving licences. Licensing authorities are empowered to renew expired driving licences upon application, accompanied by the prescribed documents and fees. If the application is made within 30 days of expiry, the renewal fee is lower. However, if the application is made more than 30 days after expiry, a higher fee is applicable. In cases where the application is made more than five years after the licence’s expiration, the licensing authority may refuse renewal unless the applicant undergoes and passes the competency test.

Revoking Driving Licence

Revocation on Grounds of Disease or Disability

Section 16 allows licensing authorities to revoke a driving licence or require the holder to produce a medical certificate if there are reasonable grounds to believe that the person is unfit to drive due to a disease or disability. This provision ensures the safety of the licence holder and other road users.

Orders Refusing or Revoking Driving Licences and Appeals

Section 17 outlines the procedures for refusing or revoking driving licences, as well as the appeal process. Licensing authorities must communicate the reasons for refusal or revocation in writing to the applicant or holder. Aggrieved individuals can appeal against such orders within 30 days to the prescribed appellate authority, whose decision is binding on the licensing authority.

Driving Licences for Government Vehicles

Section 18 provides for the issuance of driving licences valid throughout India for individuals aged 18 or above to drive motor vehicles owned or under the exclusive control of the Central Government and used for defence purposes unconnected with commercial enterprises. These licences specify the class or description of vehicles and the validity period.

Disqualification or Suspension of Driving License

Disqualification from Holding a Driving License: 

Sections 19 and 20 outline the circumstances under which licensing authorities and courts can disqualify individuals from holding a driving licence. These circumstances include:

  1. Being a habitual criminal, drunkard, or drug addict
  2. Using a vehicle in the commission of a cognizable offence
  3. Exhibiting dangerous driving behaviour
  4. Obtaining a licence through fraud or misrepresentation
  5. Committing acts likely to cause public nuisance or danger
  6. Failing to pass the required tests
  7. Conviction for specific traffic offences (e.g., rash driving, driving under the influence, causing accidents)

The disqualification period and the classes of vehicles affected are determined by the licensing authority or the court, depending on the severity of the offence.

Suspension of Driving License in Certain Cases (Section 21):

  1. If a person who has previously been convicted of an offence punishable under Section 184 (dangerous driving) is involved in a case where their dangerous driving has caused the death or grievous hurt to one or more persons, their driving licence will be suspended.
  2. The suspension period is six months from the date the case is registered or until the person is discharged or acquitted, whichever is earlier.
  3. The police officer who registers the case must bring the suspension to the notice of the competent court, which will take possession of the driving licence, endorse the suspension, and inform the licensing authority.
  4. If the person is acquitted or discharged, the court will cancel the endorsement on the driving licence regarding the suspension.
  5. During the suspension period, the person is debarred from holding or obtaining a licence to drive that particular class or description of motor vehicle.

Suspension or Cancellation of Driving License on Conviction (Section 22):

  1. If a person is convicted of causing death or grievous hurt by dangerous driving, the court may cancel or suspend their driving licence for a specific period concerning that class or description of motor vehicle.
  2. If a person, previously convicted of an offence punishable under Section 185 (driving under the influence of alcohol or drugs), is again convicted of the same offence, the court will cancel their driving licence.
  3. In case of cancellation or suspension, the court will take custody of the driving licence, endorse the cancellation or suspension, and send it to the issuing authority.
  4. For a suspended licence, the holder must undergo and pass a fresh test of competence to drive and produce a new medical certificate before the licence is returned after the suspension period.
  5. During the cancellation or suspension period, the person is debarred from holding or obtaining a licence to drive that particular class or description of motor vehicle.

Effect of Disqualification Order (Section 23):

  1. A person subject to a disqualification order under Sections 19 or 20 is debarred from holding or obtaining a driving licence to the extent and for the period specified in the order.
  2. The disqualification order’s operation is not suspended or postponed while an appeal is pending against the order or conviction, unless the appellate court directs otherwise.
  3. After six months from the disqualification order’s date, the person can apply to the court or authority that issued the order to remove the disqualification. The court or authority may cancel or vary the order based on the circumstances.

Endorsement (Section 24):

  1. The court or authority making a disqualification order will endorse the particulars of the order and any relevant convictions on the person’s driving licence, if held.
  2. For certain prescribed offences, even if no disqualification order is made, the court will endorse the conviction’s particulars on the person’s driving licence.
  3. If a person is convicted and sentenced to imprisonment exceeding three months, the court will endorse the fact on their driving licence, and the prosecuting authority will inform the licensing authority.
  4. When an appellate court varies or sets aside a conviction or order endorsed on a driving licence, it will inform the licensing authority to amend the endorsement.

Transfer of Endorsement and Issue of a New Driving License (Section 25):

  1. Endorsements on a driving licence will be transferred to any new or duplicate licence obtained by the holder until they become eligible for a licence free from endorsement.
  2. If a person’s driving licence is not in the court’s or authority’s possession for endorsement, they must produce it within a specified time, or it will become ineffective until produced for endorsement.
  3. A person whose driving licence has been endorsed is entitled to receive a new licence free from all endorsements after a continuous period of three years without further endorsements, subject to a fee payment.

 

  1. In case of endorsements only for speed limit violations, the person is entitled to a new licence free from such endorsements after one year from the endorsement date.
  2. Any period during which the person was disqualified from holding or obtaining a driving licence is excluded from calculating the three-year and one-year periods.

 

State Registers of Driving Licences and Rules Governing them

Every state government in India is required to maintain a register called the State Register of Driving Licences. This register contains important details about the driving licences issued and renewed by the licensing authorities within that state. The following information is included in the State Register of Driving Licences:

  1. Names and addresses of driving licence holders
  2. Licence numbers
  3. Dates of issue or renewal of licences
  4. Dates of expiry of licences
  5. Classes and types of vehicles authorised to be driven
  6. Any other particulars prescribed by the Central Government

Maintaining the State Register of Driving Licences 

The State Register of Driving Licences must be maintained in a format prescribed by the Central Government. Each state government has to provide a printed copy or a copy in any other form required by the Central Government. Any additions or amendments made to the register must be promptly communicated to the Central Government.

The state governments have the authority to prescribe the manner in which the State Register of Driving Licences will be maintained within their respective states.

Rules Governing Driving Licences 

Both the Central and State Governments have been empowered to make rules related to driving licences. The Central Government can make rules regarding:

  1. Specifications related to e-carts and e-rickshaws
  2. Conditions for issuing driving licences
  3. Forms and documents required for applying for learner’s and driving licences
  4. Medical certificate requirements
  5. Particulars related to competency tests for driving
  6. Issuing driving licences, including conditions and manners
  7. Educational qualifications required for obtaining licence to drive transport vehicles
  8. Forms and contents of licences
  9. Fees for learner’s licence, driving licences, renewals, and regulating driving schools
  10. Acts that can lead to disqualification from holding a driving licence
  11. Offences under the Act for which driving licences can be revoked
  12. Any other matter that needs to be prescribed by the Central Government

State Governments, on the other hand, can make rules for carrying out the provisions of the Act, except for the matters specified by the Central Government. These rules may cover:

  1. Appointment, jurisdiction, control, and functions of licensing authorities
  2. Conduct and hearing of appeals, fees for appeals, and refund of fees
  3. Issue of duplicate licence, replacement of photographs, and fees for the same
  4. Badges and uniforms for drivers of transport vehicles and associated fees
  5. Fees for issuing medical certificates
  6. Exemption of certain persons or classes of persons from paying fees
  7. Communication of licence details between licensing authorities
  8. Duties, functions, and conduct of transport vehicle drivers
  9. Exemption of road-roller drivers from certain provisions or rules
  10. Any other matter that needs to be, or may be, prescribed by the State Government

The Central and State Governments have been given the authority to make rules to effectively regulate and maintain records related to driving licences in India. These rules aim to ensure road safety, efficient licensing processes, and proper monitoring of licensed drivers.

Licensing of Conductors of State Carriages

If you’ve ever travelled by a stage carriage (bus), you’ve likely noticed the presence of a conductor. These individuals are responsible for various tasks, including collecting fares, issuing tickets, and ensuring the smooth operation of the journey. However, did you know that conductors are required to hold a special licence to perform their duties? Let’s explore the licensing requirements for conductors of stage carriages.

Necessity for a Conductor’s Licence: 

According to the law, no person can act as a conductor of a stage carriage unless they hold a valid conductor’s licence issued by the appropriate authority. It is illegal for an owner or operator to employ or permit an unlicensed individual to work as a conductor.

Eligibility and Application Process: 

To obtain a conductor’s licence, an individual must meet certain minimum educational qualifications prescribed by the respective state government. They must also not be disqualified due to any previous conduct or medical conditions that may render them unfit for the role.

The application process involves submitting a form with the required information, along with a recent photograph and a medical certificate signed by a registered medical practitioner, confirming the applicant’s physical fitness for the job.

Validity and Fees: 

A conductor’s licence issued in a particular state is valid throughout that state. The fee for obtaining or renewing a conductor’s licence is typically half the fee charged for a driving licence.

Disqualifications and Revocation: 

Licensing authorities have the power to refuse, revoke, or disqualify individuals from holding a conductor’s licence under certain circumstances. These may include:

  1. Failing to meet the minimum educational qualifications.
  2. Producing a medical certificate that indicates physical unfitness for the job.
  3. Having a previous conductor’s licence revoked.
  4. Displaying previous misconduct as a conductor that warrants disqualification for a specified period (up to one year).
  5. Being convicted of certain offences under the relevant laws.

Appeals and Judicial Oversight: 

In cases where a licensing authority refuses to issue or renew a conductor’s licence, or revokes or disqualifies an individual from holding one, the affected person has the right to appeal to a prescribed higher authority within a specified period (typically 30 days). The decision of the appellate authority is binding on the licensing authority.

Additionally, courts have the power to disqualify individuals from holding a conductor’s licence upon conviction of certain offences under the relevant laws.

Transition and Savings: 

Any existing licences issued to conductors of stage carriages before the enactment of the current laws remain valid for the duration for which they were originally issued.

State governments are empowered to make rules and regulations to carry out the provisions related to the licensing of conductors, covering aspects such as the appointment of authorities, exemptions, duties and conduct of conductors, fees, and other necessary matters.

Registration of Motor Vehicles under the Motor Vehicles Act

 

The registration of motor vehicles is a critical requirement that serves multiple purposes. It establishes legal ownership records, aids in law enforcement efforts, ensures vehicle roadworthiness and safety standards, and generates revenue for transportation infrastructure development and maintenance. Vehicle registration is a vital regulatory mechanism that promotes accountability, road safety, and efficient traffic management in the face of increasing vehicular traffic. It is an essential aspect of responsible vehicle ownership and operation.

Where to Register Your Vehicle? 

According to Section 40 of the Act, you must register your vehicle with the registering authority in whose jurisdiction you have your residence or place of business where the vehicle is normally kept.

How to Register Your Vehicle?

  1. Application Process:
    • You need to submit an application in the prescribed form to the registering authority.
    • The application must be accompanied by the required documents, particulars, and information as specified by the Central Government.
    • If the vehicle is jointly owned, one of the owners can apply on behalf of all the owners and will be considered the owner for the purposes of the Act.
    • You must pay the prescribed registration fee along with the application.
  2. Registration Certificate:
    • Upon successful registration, the registering authority will issue you a certificate of registration.
    • The certificate will contain details such as the vehicle type, registration mark (a unique combination of letters and numbers allotted to your state), and other particulars prescribed by the Central Government.
    • The registering authority will maintain a register with the details of all registered vehicles.
  3. Registration Mark:
    • The registering authority will assign a registration mark to your vehicle, which must be displayed on it in the prescribed form and manner.
  4. Validity and Renewal:
    • For non-transport vehicles, the registration certificate is valid for 15 years from the date of issue.
    • You must renew the registration certificate before its expiry by submitting an application, along with the prescribed fee, to the registering authority.
    • The renewed certificate will be valid for another 5 years.
  5. Late Registration or Renewal:
    • If you fail to register or renew the registration within the prescribed period, the registering authority may require you to pay a late fee (up to Rs. 100) instead of taking action against you under Section 177 of the Act.
    • However, if you fail to pay the late fee, action will be taken against you under Section 177.
  6. Duplicate Registration Certificate:
    • If your registration certificate is lost or damaged, you can apply for a duplicate certificate from the last registering authority by submitting the prescribed form, particulars, and fee.

Temporary Registration of Vehicle under the Motor Vehicles Act

The Motor Vehicles Act in India provides for the temporary registration of motor vehicles, allowing vehicle owners to obtain a temporary certificate of registration and a temporary registration mark. This facility is particularly useful in specific situations where a permanent registration is not immediately feasible or when the vehicle needs to be driven for a short period.

Under Section 40 of the Act, a vehicle owner can apply to any registering authority or other prescribed authority for temporary registration. The temporary registration is valid for a maximum period of one month and cannot be renewed. However, in cases where the vehicle is a chassis without a body and is detained in a workshop for fitting the body or due to unforeseen circumstances beyond the owner’s control, the registering authority can extend the temporary registration period upon payment of the prescribed fees.

The temporary registration provision is particularly beneficial for individuals who have purchased a vehicle but need to transport it to their desired location before obtaining a permanent registration. It also caters to situations where a vehicle needs to be driven temporarily, such as for testing purposes or when transferring ownership.

Interestingly, the Act also addresses scenarios where the motor vehicle is held under a hire-purchase agreement, lease, or hypothecation. In such cases, the registering authority or prescribed authority must issue a temporary certificate of registration that prominently displays the full name and address of the person with whom the owner has entered into the agreement.

Verification of Vehicle before Registration

If you’re planning to register a new vehicle or renew the registration of an existing one (except for commercial transport vehicles), the registering authority in your state requires you to present the vehicle for physical inspection. This step ensures that the information provided in your application is accurate and that your vehicle meets all the necessary legal requirements.

Here’s how the process works:

  1. Application Submission: When you submit your application for vehicle registration or renewal, you’ll need to provide details about the vehicle, such as make, model, and other specifications.
  2. Vehicle Inspection: Before processing your application, the registering authority will ask you to produce the vehicle for inspection. This inspection can be conducted either at the registering authority’s office or at a designated inspection centre appointed by the state government.
  3. Verification Process: During the inspection, the registering authority will verify that the details mentioned in your application match the actual vehicle. They will also check if the vehicle complies with all the relevant laws and regulations, such as emission standards, safety features, and other mandatory requirements.
  4. Registration or Renewal: If the vehicle passes the inspection and meets all the criteria, the registering authority will proceed with the registration or renewal process. They will issue the necessary documents, including the registration certificate.

This verification process is crucial to ensure that only roadworthy vehicles are registered and that the information provided by vehicle owners is accurate. It helps maintain a reliable database of registered vehicles and promotes road safety by keeping unfit vehicles off the roads.

Refusal of Registration or Renewal 

The registering authority (usually the Regional Transport Office or RTO) has the power to refuse the registration or renewal of a vehicle’s registration certificate under certain circumstances. These circumstances include:

  1. If the vehicle is suspected to be stolen.
  2. If the vehicle is mechanically defective or fails to comply with the requirements of the Motor Vehicles Act or its rules.
  3. If the applicant fails to provide accurate information about the vehicle’s previous registration or furnishes inaccurate particulars in the application for registration or renewal.

In case the registering authority refuses to register or renew the registration of a vehicle, the applicant will be provided with a copy of the order, along with the reasons for refusal.

Effectiveness of Registration 

Once a motor vehicle is registered in any state of India in accordance with the provisions of the Motor Vehicles Act, it does not require registration in any other state. The certificate of registration issued for the vehicle is valid and effective throughout India.

However, it is important to note that this effectiveness is subject to the provisions of Section 47 of the Act, which deals with situations where the registration of a vehicle may be suspended or cancelled.

Getting a New Registration Mark for Your Vehicle in Another State

If you have moved to a different state with your vehicle registered in another state, you need to get a new registration mark for your vehicle in the new state. This process is required if your vehicle has been kept in the new state for more than 12 months.

Here’s what you need to do:

  1. Apply for a New Registration Mark: Within the first 12 months of bringing your vehicle to the new state, you must apply to the registering authority in that state for a new registration mark. You’ll need to submit the application in the prescribed form with the required details.
  2. Submit Supporting Documents: Along with your application, you must provide:
    • A No Objection Certificate from the previous registering authority (obtained under Section 48 of the Motor Vehicles Act), OR
    • If you don’t have the No Objection Certificate, you can submit either: a) The receipt obtained when you applied for the certificate under Section 48, OR b) The postal acknowledgment received when you sent the application by registered post to the previous registering authority.
    • You’ll also need to provide a declaration stating that you haven’t received any communication refusing or conditional granting of the certificate.
  3. Additional Requirements for Hired/Leased Vehicles: If your vehicle is hired, leased, or hypothecated (mortgaged), you must obtain a No Objection Certificate from the person/company you have the agreement with.
  4. New Registration Mark Assignment: The registering authority in the new state will verify the details, assign a new registration mark as per Section 41(6) of the Motor Vehicles Act, and enter the new mark on your registration certificate.
  5. Transfer of Registration: The new registering authority will communicate with the previous authority to transfer your vehicle’s registration to their records.
  6. Failure to Apply on Time: If you fail to apply for a new registration mark within the prescribed time, you may have to pay a penalty of up to Rs. 100 instead of facing action under Section 177 of the Motor Vehicles Act.
  7. Providing Information: State governments may require you to furnish information about your vehicle and its registration when you bring it into the state, even if it’s not registered there.

No Objection Certificate for transfer of Motor Vehicles from One State to Another

When you plan to transfer ownership of your motor vehicle to someone else or if you need to get a new registration mark assigned to your vehicle, you need to obtain a No Objection Certificate (NOC) from the registering authority where your vehicle is registered.

The No Objection Certificate serves as a confirmation from the registering authority that they have no objection to either assigning a new registration mark to your vehicle or transferring the ownership of your vehicle to someone else.

Here’s how you can obtain the No Objection Certificate:

  1. Application Process:
    • If you’re applying for a new registration mark, you (the vehicle owner) need to submit an application in the prescribed form to the registering authority.
    • If you’re transferring the ownership of your vehicle to someone else in a different state, the transferor (the current owner) needs to report the transfer and apply for the NOC.
  2. Issuance of Receipt:
    • Upon receiving your application, the registering authority will issue a receipt in the prescribed form.
  3. Decision by the Registering Authority:
    • Within 30 days of receiving your application, the registering authority will either grant or refuse to grant the No Objection Certificate.
    • If they refuse to grant the NOC, they must record the reasons in writing and communicate them to you.
    • If the registering authority does not communicate a refusal within 30 days, the NOC is deemed to have been granted.
  4. Verification Process:
    • Before granting or refusing the NOC, the registering authority will:
      • Obtain a report from the police confirming that no theft case related to your vehicle has been reported or is pending.
      • Verify that all amounts due to the government, including road tax, have been paid for your vehicle.
      • Consider any other factors prescribed by the Central Government.
  5. Theft Information:
    • If your vehicle is stolen, you must inform the registering authority in writing about the theft, including the name of the police station where the theft report was lodged.
    • The registering authority will take this theft report into account when processing any application related to your vehicle, such as the NOC, registration, transfer of ownership, or issuance of a duplicate registration certificate.

What to Do When You Change Your Residence or Business Address for Your Motor Vehicle?

If you own a motor vehicle and have recently changed your residential or business address, there are certain steps you need to take to update your vehicle’s registration information. According to the law, you must inform the relevant authorities about your new address within 30 days of the change.

Here’s what you need to do:

  1. Notify the Registering Authority
    • If your new address is within the jurisdiction of the same registering authority that issued your vehicle’s registration certificate, you must inform them of your new address.
    • If your new address falls under a different registering authority’s jurisdiction, you must inform that authority about your change of address.
  2. Submit the Required Form and Documents
    • You must intimate your new address in the prescribed form, along with any necessary documents as specified by the Central Government.
    • At the same time, you must forward your vehicle’s registration certificate to the concerned registering authority so that they can update your new address in the certificate.
  3. Potential Penalty for Delay
    • If you fail to intimate your new address to the registering authority within the 30-day period, they may require you to pay a penalty amount, which can be up to Rs. 100.
    • If you fail to pay the penalty amount, further action may be taken against you under Section 177 of the relevant law.
    • However, if you pay the penalty amount, no further action will be taken against you.
  4. Address Update Process
    • Upon receiving your intimation, the registering authority will verify the information and update your new address in the vehicle’s registration certificate.
    • If the new address falls under a different registering authority’s jurisdiction, the updated information will be communicated to the original registering authority.

It’s important to note that the above process is not required if your change of address is due to a temporary absence not exceeding six months or if your vehicle is neither used nor removed from the address recorded in the registration certificate.

Transfer of Ownership under the Motor Vehicles Act

The transfer of ownership for motor vehicles is a crucial process governed by the Motor Vehicles Act. Failure to comply with the prescribed procedures can lead to legal implications and potential fines. This article aims to provide a comprehensive overview of the transfer of ownership process, highlighting the responsibilities of both the transferor (seller) and the transferee (buyer).

  1. Transferor’s Obligations: 
  1. Intra-State Transfer: 

In the case of a vehicle registered within the same state, the transferor must report the transfer to the registering authority within whose jurisdiction the transfer is to be effected. This report should be submitted within 14 days of the transfer, along with the prescribed form, documents, and manner as specified by the Central Government. Simultaneously, the transferor must send a copy of the report to the transferee. 

  1. Inter-State Transfer: 

If the vehicle is registered outside the state, the transferor is required to forward specific documents to the registering authority referred to in sub-clause 

(i) within 45 days of the transfer. These documents include either a no-objection certificate obtained under Section 48 of the Act or, in the absence of such a certificate, the receipt or postal acknowledgment received from the registering authority along with a declaration stating no communication has been received refusing or imposing conditions for granting the certificate.

  1. Transferee’s Responsibilities: 

Within 30 days of the transfer, the transferee must report the transfer to the registering authority within whose jurisdiction they reside or have a place of business where the vehicle is normally kept. The transferee must forward the certificate of registration to the registering authority, along with the prescribed fee and a copy of the report received from the transferor. This step is necessary to update the particulars of the transfer of ownership in the certificate of registration.

  1. Special Cases: 
  1. Deceased Owner: If the registered owner of a motor vehicle passes away, the person succeeding to the possession of the vehicle must apply for transferring the ownership to their name. This application should be made to the registering authority in whose jurisdiction the applicant resides or has a place of business where the vehicle is normally kept. 
  2. Government Auction Purchase: In case a motor vehicle is purchased or acquired at a public auction conducted by or on behalf of the government, the purchaser or acquirer must apply for transferring the ownership to their name, following the prescribed manner, fee, and time period specified by the Central Government.
  1. Penalties for Non-compliance: 

If the transferor, transferee, or the person required to make an application for transfer (in special cases) fails to comply with the prescribed timelines, the registering authority may require them to pay a penalty, in lieu of legal action under Section 177 of the Act. The penalty amount, not exceeding Rs. 100, may be prescribed by the State Government, considering the period of delay.

  1. Transfer Process: Upon receipt of the required report or application, the registering authority may cause the transfer of ownership to be entered in the certificate of registration. The registering authority shall communicate the transfer of ownership to the transferor and the original registering authority, if different.

Law on Altering Motor Vehicle

When you own a vehicle, you may feel the urge to modify or alter it to suit your preferences or needs. However, it’s crucial to understand that there are legal provisions governing alterations to motor vehicles. These laws are in place to ensure road safety, maintain vehicle integrity, and prevent unauthorised modifications.

The Central Motor Vehicles Act, 1988, specifically addresses the issue of altering motor vehicles. Here are the key points to consider:

  1. Alterations that Change Vehicle Specifications: As a general rule, owners are not allowed to alter their vehicles in a way that changes the particulars mentioned in the registration certificate from the manufacturer’s original specifications.
  2. Exception for Alternative Fuel Conversions: However, there is an exception for modifications that facilitate the operation of the vehicle using alternative fuels or energy sources, such as compressed natural gas (CNG), electric batteries, or solar power. These modifications must be carried out using approved conversion kits and subject to prescribed conditions by the Central Government.
  3. Government Regulations: The Central Government has the authority to prescribe specifications, conditions for approval, retrofitment, and other related matters for such conversion kits.
  4. Exemptions for Specific Purposes: The Central Government can also grant exemptions for alterations of vehicles for specific purposes, other than the aforementioned alternative fuel conversions.
  5. Engine Replacement for Commercial Vehicles: State Governments can authorise and permit owners of at least ten transport vehicles to replace the engines of their vehicles with engines of the same make and type, without the approval of the registering authority, subject to specified conditions.
  6. Reporting Alterations: If any alteration is made to a motor vehicle without the approval of the registering authority or due to engine replacement, the owner must report the alteration to the registering authority within 14 days, along with the prescribed fee, to update the registration certificate.
  7. Hire-Purchase Agreements: If a vehicle is held under a hire-purchase agreement, the person holding the vehicle cannot make any alterations without the written consent of the registered owner.

It’s important to note that failure to comply with these regulations can result in penalties or legal consequences. If you plan to alter your vehicle, it’s advisable to seek guidance from the relevant authorities or consult with a legal professional to ensure compliance with the applicable laws and regulations.

Cancellation or Suspension of Registration of Vehicle under the Motor Vehicles Act

When you own a vehicle, it’s essential to keep it registered and comply with the Motor Vehicles Act. However, there are situations where the registering authority may suspend or cancel your vehicle’s registration. Let’s explore these scenarios in simple terms.

Suspension of Registration: 

The registering authority or a prescribed authority can suspend your vehicle’s registration under the following circumstances:

  1. Dangerous Condition: If your vehicle is in such a condition that using it on public roads would pose a danger to others or if it fails to comply with the requirements of the Motor Vehicles Act or its rules.
  2. Unauthorised Commercial Use: If your vehicle is being used for hire or reward (e.g., commercial purposes like a taxi or goods carrier) without a valid permit.

In such cases, the authority will send you a notice, giving you an opportunity to provide your explanation. If the reasons are valid, they can suspend your registration:

  • For the first scenario, until the defects are rectified to their satisfaction.
  • For the second scenario, for a period not exceeding four months.

Cancellation of Registration: The registering authority can cancel your vehicle’s registration in the following situations:

  1. Extended Suspension: If the suspension of your registration has continued for six months or more without interruption, the registering authority may cancel the registration.
  2. Vehicle Destruction or Incapability: If your vehicle has been destroyed or rendered permanently incapable of use, you must report this to the registering authority within 14 days. They will then cancel the registration.
  3. Unsafe Condition: If, after examination, the authority concludes that your vehicle is incapable of being used or its use would endanger the public, and it’s beyond reasonable repair, they may cancel the registration.
  4. Permanent Removal from India: If the registering authority is satisfied that your vehicle has been permanently removed from India, they can cancel the registration.
  5. False or Misleading Information: If the registration was obtained based on false documents or misrepresented facts, or if the engine or chassis numbers are different from those entered in the registration certificate, the authority can cancel the registration after giving you a chance to explain.

In all cases of cancellation, the registering authority will communicate the decision to you, and you must surrender the registration certificate. Failure to comply may lead to penalties.

Certificate of FItness of Transport Vehicles under the Motor Vehicles Act

In India, transport vehicles must carry a valid Certificate of Fitness (CF) to be considered properly registered under the Motor Vehicles Act. This certificate ensures that the vehicle complies with all the necessary requirements set by the Act and its associated rules. Let’s break down the key points about the Certificate of Fitness:

  1. Issuing Authority: The CF is issued by a prescribed authority or an authorised testing station, such as a vehicle service station or a public or private garage, designated by the State Government.
  2. Validity Period: The CF remains valid for a period prescribed by the Central Government, keeping in mind the objectives of the Motor Vehicles Act.
  3. Vehicle Compliance: The CF confirms that the vehicle meets all the requirements specified in the Act and its rules at the time of issuance.
  4. Refusal to Issue: If the prescribed authority or the authorised testing station refuses to issue the CF, they must provide the vehicle owner with a written explanation for the refusal.
  5. Cancellation of CF: The prescribed authority may cancel the CF at any time if they are satisfied that the vehicle no longer complies with the Act and its rules. However, the authority must record the reasons for cancellation in writing. If the prescribed authority does not hold the required technical qualifications, the cancellation must be based on the report of an officer who possesses such qualifications.
  6. Consequences of Cancellation: Upon cancellation of the CF, the vehicle’s registration certificate and any permit granted under Chapter V of the Act will be suspended until a new CF is obtained.
  7. Nationwide Validity: A CF issued under the Motor Vehicles Act is valid throughout India as long as it remains effective.

 

Power to fix the Age Limit of Motor Vehicle under Motor Vehicles Act

The Indian government has the authority to set a maximum age limit for motor vehicles, according to the Motor Vehicles Act. This means that after a certain number of years, counted from the date of manufacture, a vehicle may no longer be considered roadworthy or compliant with the Act and its associated rules.

The Central Government can decide on this age limit based on factors such as public safety, convenience, and the overall objectives of the Motor Vehicles Act. Different types of vehicles may have different age limits. For example, the government might set a shorter lifespan for commercial vehicles like trucks and buses, compared to private cars.

However, there are some exceptions to this rule. The government can choose to exempt certain vehicles from the age limit, depending on their purpose. This could include vehicles used for displays or demonstrations in exhibitions, for technical research, or for participating in vintage car rallies. The government will issue a notification in the Official Gazette to announce such exemptions, which may come with certain conditions attached.

It’s important to note that once the government has issued a notification setting an age limit for motor vehicles, no authorised testing station or prescribed authority is allowed to issue a fitness certificate to a vehicle that has crossed this age limit. This ensures that older, potentially unsafe vehicles are gradually phased out from Indian roads.

Information Regarding Stolen and Recovered Motor Vehicles to be furnished by The Police

The state government can direct the Inspector General of Police and other specified police officers to submit returns containing information about stolen and recovered vehicles to the State Transport Authority. This measure aims to improve coordination between the police and the transport authority, enhance public safety, and assist in the recovery of stolen vehicles.

The government may prescribe the format and frequency of these returns, ensuring standardised and easily processable data. The police will provide details of stolen vehicles and those that have been successfully recovered based on their available records.

By maintaining a centralised database, the State Transport Authority can prevent the registration of stolen vehicles, identify suspicious vehicles, and facilitate the return of recovered vehicles to their rightful owners. This collaboration demonstrates the government’s commitment to combating vehicle theft and promoting public safety through inter-departmental cooperation.

 

Maintenance of State Registers of Motor Vehicle

In India, each state government is responsible for maintaining a State Register of Motor Vehicles, which contains essential information about all motor vehicles registered within that state. This register is crucial for keeping track of vehicle ownership, maintaining road safety, and facilitating communication between the state and central governments.

The State Register of Motor Vehicles must include the following details for each vehicle:

  1. Registration number: The unique identifier assigned to each vehicle upon registration.
  2. Year of manufacture: The year in which the vehicle was produced.
  3. Class and type: The category and specific type of the vehicle (e.g., car, motorcycle, truck).
  4. Name and address of the registered owner: The personal details of the individual or organisation that owns the vehicle.
  5. Other particulars: Any additional information required by the Central Government.

To ensure uniformity across the country, the Central Government prescribes the format in which the State Register of Motor Vehicles should be maintained. State governments are required to follow this format and keep their registers up-to-date with all relevant information.

Furthermore, each state government must provide the Central Government with a printed copy of their State Register of Motor Vehicles upon request. This enables the Central Government to have access to a comprehensive database of all motor vehicles in the country. In addition to the printed copy, state governments are also required to inform the Central Government about any changes, additions, or amendments made to the register as they occur. This ensures that the Central Government has the most current information available.

The manner in which the State Register of Motor Vehicles is maintained is determined by the respective state governments, in accordance with any guidelines or rules prescribed by the state. This allows for some flexibility in the management of the register while still adhering to the overall requirements set forth by the Central Government.

Power of Government to Make Rules under registration of Vehicle under Motor Vehicle Act

The Motor Vehicles Act is a crucial piece of legislation that governs various aspects of road transport in India. To ensure its effective implementation, the Act empowers the Central and State Governments to make rules on specific matters. Let’s explore the power of the government to make these rules in a simple manner.

Central Government’s Power to Make Rules: The Central Government has the authority to make rules on several matters, including:

  1. Application for registration: The form, timeline, and required documents for vehicle registration.
  2. Certificate of registration: The form, contents, and issuance process of the registration certificate.
  3. Display of registration details: How the registration mark, letters, figures, and other particulars should be displayed on the vehicle.
  4. Transfer of ownership: The process and form for intimating the transfer of vehicle ownership.
  5. Certificate of fitness: The form, content, and validity period of the fitness certificate for vehicles.
  6. Fees: The fees for various services like registration, transfer of ownership, fitness certification, and more.

State Government’s Power to Make Rules: The State Government can make rules on matters not specified under the Central Government’s jurisdiction. These include:

  1. Appeals: The procedure and fees for appeals under the Act.
  2. Authorities: Appointment, functions, and jurisdiction of registering and other prescribed authorities.
  3. Exemptions: Exempting certain vehicles from the provisions of the Act and the conditions governing such exemptions.
  4. Temporary registration: The process for temporary registration of vehicles and the issuance of temporary certificates and marks.
  5. Communication between authorities: The sharing of registration details between registering authorities and owners of vehicles registered outside the state.
  6. Maintenance of State Register: The manner in which the State Register of Motor Vehicles should be maintained.

The rules made by the Central and State Governments help in the smooth and effective implementation of the Motor Vehicles Act. They provide clarity on various procedures, forms, and fees related to vehicle registration, fitness certification, and other aspects of road transport. By understanding these rules, vehicle owners and other stakeholders can ensure compliance with the Act and contribute to safer and more efficient road transport in India.

Control of Transport Vehicles under The Motor Vehicles Act

The control of transport vehicles is a crucial aspect of ensuring safe, efficient, and well-regulated transportation systems. In India, the Motor Vehicles Act provides a comprehensive framework for the control of transport vehicles, covering various aspects such as permit requirements, the role of state governments and transport authorities, permit conditions, and more. This article aims to provide an in-depth examination of the control of transport vehicles in India, based on the relevant provisions of the Motor Vehicles Act.

Permit Requirements

  1. Necessity for Permits 

The Motor Vehicles Act mandates that no owner of a motor vehicle shall use or permit the use of their vehicle as a transport vehicle in any public place without a valid permit. This requirement is essential to ensure that all transport vehicles are operating legally and in compliance with the prescribed regulations.

  1. Exemption from Permit Requirements

However, there are certain exemptions to the permit requirement. These exemptions include transport vehicles owned by the Central or State Government and used for official purposes, those used for road cleansing, road watering, or conservancy purposes, and vehicles used for police, fire brigade, or ambulance services. Additionally, certain transport vehicles, such as those used for the conveyance of corpses or for towing disabled vehicles, are also exempt from permit requirements.

Role of State Government

  1. Power to Control Road Transport

The State Government plays a crucial role in controlling road transport within its jurisdiction. The Act empowers the State Government to issue directions to the State Transport Authority and Regional Transport Authorities regarding various aspects of road transport control, such as fixing fares and freights, prohibiting or restricting the conveying of long-distance goods traffic by goods carriages, and regulating the transport of goods and passengers. 

  1. Direction To Transport Authorities

The State Government may issue directions to the Transport Authorities to coordinate and regulate their activities and policies. These directions may pertain to matters such as the fixing of fares and freights, the prohibition or restriction of long-distance goods traffic, and the regulation of motor transport in coordination with other means of transport.

  1. Procedure for Issuing Directions

Before issuing any directions related to the prohibition or restriction of long-distance goods traffic or the regulation of motor transport, the State Government must publish a draft of the proposed directions in the Official Gazette. The draft should specify a date, not less than one month after publication, on which the draft will be taken into consideration. The State Government must consider any objections or suggestions received in response to the draft before finalising the directions.

Transport Authorities

State Transport Authority

  1. Constitution

The State Government shall constitute a State Transport Authority to exercise and discharge the powers and functions specified in the Act. The State Transport Authority shall consist of a Chairman who has experience as a judicial officer or as an appellate or revisional authority, along with such other officials and non-officials as the State Government may appoint.

 

  1. Power And Functions

The State Transport Authority has various powers and functions, including coordinating and regulating the activities and policies of Regional Transport Authorities, performing the duties of a Regional Transport Authority where there is none, and settling disputes between Regional Transport Authorities. The State Transport Authority also has the power to issue directions to Regional Transport Authorities, and they are required to give effect to and be guided by such directions.

Regional Transport Authorities

  1. Constitution

The State Government shall constitute Regional Transport Authorities for specified regions within the state. Like the State Transport Authority, each Regional Transport Authority shall consist of a Chairman with judicial experience or experience as an appellate or revisional authority, along with other officials and non-officials as appointed by the State Government. 

  1. Powers And Functions

Regional Transport Authorities are responsible for exercising and discharging the powers and functions conferred upon them by the Act within their respective regions. These powers and functions include granting, revoking, and suspending permits, as well as enforcing the provisions of the Act and the rules made thereunder. 

Delegation of Powers

The State Transport Authority and Regional Transport Authorities may delegate some of their powers and functions to subordinate authorities or officers, subject to the prescribed conditions and limitations. This delegation of powers helps in the decentralisation of authority and facilitates the efficient functioning of the transport control system.

Permit Application and Grant Procedures

  1. Types of permits 

The Motor Vehicles Act provides for various types of permits for different categories of transport vehicles

Stage carriage permit

A stage carriage permit is required for vehicles that carry passengers for hire or reward and operate on a specified route or routes, with passengers being picked up and set down at predetermined stages along the route.

Contract carriage permit

A contract carriage permit is required for vehicles that carry passengers for hire or reward, where the passengers are carried under a contract for the hire of the vehicle as a whole.



Private service vehicle permit

A private service vehicle permit is required for vehicles that carry passengers without hire or reward, in connection with the trade or business of the owner of the vehicle.

Goods carriage permit 

A goods carriage permit is required for vehicles that carry goods for hire or reward, or for the carriage of goods for or in connection with a trade or business carried on by the owner of the vehicle. 

  1. Application process 

An application for a permit must be made to the Regional Transport Authority of the region in which the vehicle will be used. The application must contain the prescribed particulars and be accompanied by the prescribed documents. In certain cases, the application may need to be made to the State Transport Authority instead of the Regional Transport Authority.

  1. Considerations for granting permits 

When considering an application for a permit, the Regional Transport Authority shall have regard to various factors, such as the advantages and disadvantages of the proposed service, the adequacy of existing road passenger transport services, and the condition of the roads included in the proposed route. The Regional Transport Authority may grant the permit with or without modifications, or refuse to grant the permit based on these considerations.

Permit Conditions and Regulations 

  1. General conditions attached to permits 

The Act specifies certain general conditions that are attached to all permits, such as the requirement to carry a valid certificate of fitness, adherence to prescribed speed limits, compliance with any prohibitions or restrictions imposed by the authorities, and the observance of the provisions related to the hours of work of drivers.

  1. Cancellation and suspension of permits 

The transport authorities have the power to cancel or suspend a permit on various grounds, such as the breach of permit conditions, the use of the vehicle in an unauthorised manner, or the permit holder’s acquisition of a foreign citizenship. However, before cancelling or suspending a permit, the authorities must give the permit holder an opportunity to provide an explanation. 

  1. Transfer and replacement of vehicles 

A permit is not transferable from one person to another without the permission of the transport authority that granted the permit. However, in cases where the permit holder dies, the person succeeding to the possession of the vehicle may use the permit for a limited period, subject to certain conditions. The transport authorities may also allow the replacement of a vehicle covered under a permit with another vehicle of the same nature. 

  1. Permit validity and renewal 

Permits are generally valid for a period of five years from the date of issuance or renewal. Permit holders may apply for renewal of their permits before the expiry date, and the transport authorities may reject the renewal application on certain grounds, such as the unsatisfactory financial condition of the applicant or repeated offences committed by the permit holder.

Special Permits

  1. Temporary permits 

The Act provides for the issuance of temporary permits by the Regional Transport Authority and the State Transport Authority. These permits are valid for a limited period not exceeding four months and are granted to meet special occasions, seasonal business needs, or temporary requirements. In exceptional cases, temporary permits for goods carriages may be granted for a period of up to one year. 

  1. Validation of permits for use outside the region 

A permit granted by a Regional Transport Authority is usually valid only within the region for which it is granted. However, the Act provides for the validation of permits for use outside the region through a process called “countersignature.” A permit may be countersigned by the Regional Transport Authority of another region or the State Transport Authority of another state, making it valid for operation in those areas, subject to certain conditions.

Appeals and Revisions

  1. Appeals against permit-related decisions 

Any person aggrieved by a decision of the transport authorities regarding the grant, refusal, revocation, or suspension of permits may file an appeal to the prescribed appellate authority within the specified time limit. The appellate authority, after giving the parties an opportunity to be heard, shall give a decision on the appeal, which shall be final.

  1. Revision of orders by State Transport Appellate Tribunal 

The State Transport Appellate Tribunal has the power to revise any order passed by a State Transport Authority or Regional Transport Authority, either on its own motion or on an application made to it. The Tribunal may confirm, modify, or set aside the order, but it cannot pass an order prejudicial to any person without giving them a reasonable opportunity of being heard.

Additional Provisions 

  1. Restrictions on hours of work for drivers 

The Act places restrictions on the hours of work for drivers of transport vehicles to ensure their well-being and to prevent accidents caused by fatigue. The State Government may also prescribe the circumstances under which a driver, although not engaged in work, is required to remain near the vehicle, and such time may be counted as rest time. 

  1. Voidance of contracts restricting liability 

Any contract for the conveyance of passengers in a stage carriage or contract carriage that seeks to negate or restrict the liability of any person in respect of any claim made against them for the death of, or bodily injury to, a passenger shall be void to that extent. 

  1. Licensing of agents and canvassers 

The Act mandates that no person shall engage as an agent or canvasser in the sale of tickets for travel by public service vehicles or solicit customers for goods carriages unless they have obtained a licence from the prescribed authority. The State Government may make rules specifying the conditions for granting such licences.

  1. Jurisdiction of Civil Courts 

The jurisdiction of Civil Courts is barred in matters relating to the grant of permits under the Act. No Civil Court shall have the power to entertain any question or issue an injunction in respect of any action taken or proposed to be taken by the transport authorities in connection with the grant of permits.

  1. Rule-making powers of State Government 

The Act empowers the State Government to make rules for the purpose of carrying into effect the provisions relating to the control of transport vehicles. These rules may cover various aspects, such as the constitution and functioning of transport authorities, the conduct of business by these authorities, the forms and documents to be used, and the fees to be paid.

Special Provision relating to State Transport Undertaking

In India, transportation services play a crucial role in the movement of people and goods across the country. To ensure efficient, adequate, economical, and well-coordinated road transport services, the Motor Vehicles Act, 1988 introduces special provisions for State Transport Undertakings (STUs). These provisions aim to empower state governments to establish and regulate STUs, which are state-owned or controlled entities responsible for operating road transport services.

What are State Transport Undertakings (STUs)? 

State Transport Undertakings are government-owned or controlled entities that operate road transport services within a state or across multiple states. These undertakings are established by state governments with the primary objective of providing efficient, adequate, economical, and properly coordinated road transport services for passengers and goods.

Special Provisions for STUs:

  1. Overriding Power: 

The provisions related to STUs, along with the rules and orders made under them, override any inconsistencies found in Chapter V (Control of Transport Vehicles) or any other law in force. This ensures that the specific provisions for STUs take precedence.

  1. Preparation and Publication of Proposals: 

When a state government believes that it is necessary in the public interest for an STU to run and operate road transport services, either exclusively or partially, in a particular area or route, it can formulate a proposal. This proposal must include details such as the nature of services, the area or route to be covered, and other relevant particulars. The proposal must be published in the Official Gazette, regional language newspapers, and through other appropriate means.

  1. Objections and Approval Process: 

After the proposal is published, any person can file objections within 30 days. The state government must consider these objections, provide an opportunity for objectors and STU representatives to be heard, and then approve or modify the proposal. The approved scheme is then published in the Official Gazette and becomes final.

  1. Temporary Permits: 

Once a proposal is published, no new permits shall be granted to any person, except for temporary permits valid until the final publication of the scheme or for one year, whichever is earlier.

  1. Issuance of Permits to STUs: 

Upon the application of an STU in accordance with an approved scheme, the State Transport Authority or Regional Transport Authority must issue stage carriage, goods carriage, or contract carriage permits to the STU for the notified area or route, regardless of any contrary provisions in Chapter V.

  1. Cancellation or Modification of Existing Permits:

To give effect to the approved scheme, the transport authorities can refuse to entertain or reject pending applications for permits, cancel existing permits, or modify the terms of existing permits by specifying an expiry date, reducing the number of authorised vehicles, or curtailing the area or route covered.

  1. Compensation: 

If existing permits are cancelled or modified, the STU must pay compensation to the permit holders based on a formula considering the unexpired period of the permit, the curtailment of the area or route, and other factors.

  1. Operation of Additional Services: 

STUs can operate additional services for the conveyance of passengers on special occasions, such as fairs and religious gatherings, after informing the concerned Transport Authority.

  1. Disposal of Unclaimed Articles: 

If any article found in an STU vehicle is not claimed by its owner within the prescribed period, the STU can sell the article and pay the sale proceeds, after deducting costs, to the owner upon demand.

  1. Rule-making Power: 

State governments have the power to make rules for carrying out the provisions related to STUs, covering matters such as the form and manner of publishing proposals, handling objections, issuing permits, disposing of unclaimed articles, and other related matters.

Construction, Equipment And Maintenance of Motor Vehicle

Motor vehicles play a crucial role in modern transportation, facilitating the movement of people and goods. However, with the convenience they offer comes the responsibility of ensuring their proper construction, equipment, and maintenance. Governments around the world have implemented regulations to safeguard the safety of drivers, passengers, and other road users by setting standards for vehicle design, components, and upkeep.

Construction

The construction of motor vehicles is meticulously regulated to ensure they are built to be under the effective control of the driver at all times. 

Specific guidelines govern various aspects, such as:

  1. Dimensions: Rules outline the permissible width, height, length, and overhang of vehicles and their loads to prevent excessive size that could compromise manoeuvrability or pose hazards on the road.
  2. Brakes and Steering: Stringent standards are in place for braking systems and steering mechanisms, ensuring vehicles can stop and manoeuvre effectively in various conditions.
  3. Safety Features: Vehicles must incorporate essential safety components like safety belts, handlebars for motorcycles, auto-dippers (automatic headlight dimmers), and other equipment designed to protect drivers, passengers, and other road users.

Equipment

Vehicles must be equipped with specific components and features to enhance safety and minimise environmental impact. 

Some key requirements include:

  1. Tires: Regulations govern the size, type, maximum retail price, and condition of tires, including mandatory embossing of the date and year of manufacture, as well as the maximum load-carrying capacity.
  2. Signalling Devices: Vehicles must have appropriate signalling appliances, lamps, and reflectors to indicate their presence and intended movements to other road users.
  3. Emission Control: To reduce air pollution, vehicles may be required to have catalytic converters or meet specific standards for emissions of air pollutants.
  4. Noise Reduction: Measures are in place to minimise noise pollution from vehicles, such as restrictions on the emission of smoke, visible vapour, sparks, ashes, grit, or oil.

Maintenance: 

Proper maintenance is crucial to ensuring vehicles remain roadworthy and operate safely throughout their lifespan. 

Regulations cover aspects like:

  1. Periodic Inspections: Authorities may mandate periodic testing and inspection of vehicles by prescribed authorities, with fees charged for such tests.
  2. Chassis and Engine Numbers: Vehicles must have their chassis and engine numbers, as well as the date of manufacture, embossed for identification and tracking purposes.
  3. Hazardous Materials: Special provisions are in place for the transportation of dangerous or hazardous goods to safeguard human life.

Exemptions and Variations

While the regulations aim to ensure a uniform standard, provisions exist for exemptions and variations to accommodate specific circumstances or vehicle types:

  1. The central government may exempt certain classes of motor vehicles from specific provisions of the regulations.
  2. State governments may also grant exemptions to motor vehicles or classes of vehicles from certain rules, subject to conditions prescribed by the central government.

Control of Traffic under the Motor Vehicle’s Act

Among the various provisions under the motor vehicles act, the Act lays down specific rules and regulations for the control of traffic, aimed at ensuring road safety, maintaining orderly traffic flow, and preventing accidents and hazards.

Limits of Speed

The Act empowers the State Governments to fix maximum and minimum speed limits for motor vehicles in the interest of public safety and convenience. These limits can be set for specific vehicles, classes of vehicles, or for particular areas or roads. This provision allows authorities to regulate vehicle speeds based on the nature of the road, traffic conditions, and other relevant factors.

Weight Limits And Vehicle Restrictions

Vehicle Weight Regulations

  1. The state government has the authority to prescribe conditions for issuing permits to transport vehicles, such as heavy goods vehicles or passenger vehicles.
  2. There are strict limitations on the maximum weight a vehicle can carry, both in terms of its unladen (empty) weight and laden (gross vehicle) weight, as specified in the vehicle’s registration certificate.
  3. Vehicles found to be exceeding the permitted weight limits are considered overloaded, which is an offence under the law.
  4. Authorised officers from the Motor Vehicles Department have the power to require the driver to convey the vehicle to a nearby weighing device (within a specified distance) for weighment.
  5. If the vehicle is found to be overloaded, the officer can direct the driver to offload the excess weight at their own risk and not remove the vehicle until the laden weight complies with the regulations.
  6. The officer can also endorse the details of the overloading on the vehicle’s permit, and the issuing authority will be notified.

Restrictions on Use

  • The state government or authorised authorities can prohibit or restrict the use of certain vehicles in specific areas or routes if deemed necessary for public safety, convenience, or due to the nature of the road or bridge conditions.
  • Such restrictions may apply to certain classes or descriptions of vehicles or the use of trailers.
  • Appropriate traffic signs must be placed or erected to indicate these prohibitions or restrictions.

Vehicle Specifications and Safety Measures

  • Tire Requirements:

      • Except as prescribed otherwise, all motor vehicles must be fitted with pneumatic (air-filled) tires when driven in public places.
  • Signalling Devices:

      • Vehicles with left-hand steering control must be equipped with a functional mechanical or electrical signalling device of a prescribed nature.
  • Safety Measures for Two-Wheeled Motorcycles:

      • Drivers of two-wheeled motorcycles are allowed to carry only one pillion rider (rear passenger) seated on a securely fixed seat with appropriate safety measures.
      • The central government may prescribe additional safety measures for drivers and pillion riders of two-wheeled motorcycles.
  • Protective Headgear (Helmets):

    • Every person driving or riding (as a pillion rider) on a two-wheeled motorcycle in a public place must wear protective headgear (helmets) conforming to the standards set by the Bureau of Indian Standards.
    • An exception is made for Sikhs wearing turbans while riding motorcycles.
    • The state government may provide further exceptions to this rule as deemed fit.

Traffic Signs and Road Markings

  • Installation of Traffic Signs:

      • The state government or authorised authorities can cause or permit the placement of traffic signs in public places to indicate speed limits, prohibitions, restrictions, or other regulations for motor vehicle traffic.
      • Certain roads may be designated as main roads, and appropriate traffic signs will be erected to indicate this.
      • The size, colour, type, and meaning of traffic signs are prescribed in the Schedule of the Motor Vehicles Act, but the state government can authorise the addition of transcriptions in local scripts.
  • Obedience to Traffic Signs:

      • Drivers must drive their vehicles in conformity with indications given by mandatory traffic signs, which includes traffic signs with a circular disc displaying a device, word, or figure and having a red ground or border.
      • Drivers must also comply with all driving regulations issued by the central government and follow directions given by police officers regulating traffic in public places.
  • Offences Related to Traffic Signs:

    • Willfully removing, altering, defacing, or tampering with traffic signs placed or erected by authorities is an offence punishable under the law.
    • If a person accidentally damages a traffic sign, rendering it useless, they must report the incident to the police within 24 hours.

Parking and Halting Regulations

  • Designated Parking Places and Halting Stations

      • The state government or authorised authorities, in consultation with local authorities, can determine designated places where motor vehicles may park or halt, either indefinitely or for a specified period.
      • Specific areas may be designated for public service vehicles (e.g., buses, taxis) to stop for extended periods to pick up and drop off passengers.
  • Prohibition on Dangerous Parking:

    • Leaving a motor vehicle or trailer in a public place in a position, condition, or circumstances that cause or are likely to cause danger, obstruction, or undue inconvenience to other road users or passengers is prohibited.

Driving Rules and Regulations

  • General Driving Regulations:

      • The central government has the authority to issue regulations governing the driving of motor vehicles, which drivers must comply with.
  • Prohibited Actions:

      • Carrying passengers outside the vehicle body or on the running board is prohibited.
      • Travelling on public transport without a valid ticket or pass is not allowed.
      • Obstructing the driver’s view or control of the vehicle is prohibited.
      • Leaving a stationary vehicle unattended without applying brakes or taking necessary precautions to prevent accidental motion is not permitted.
      • Causing danger, injury, or annoyance to the public or property, or obstructing traffic is prohibited.
  • Duties in Case of Accidents:

      • In the event of an accident involving injury or damage to property, drivers have specific duties:
        • Take reasonable steps to secure medical attention for injured persons, including conveying them to the nearest medical facility.
        • Provide information required by police officers present at the scene or report the incident to the nearest police station within 24 hours.
        • Furnish information about the accident, including policy details, date, time, place, particulars of injured/deceased persons, and the driver’s licence details, to the insurer who issued the vehicle’s insurance certificate.
  • Stopping Vehicles:

    • Drivers must stop their vehicles and remain stationary for a reasonable time, not exceeding 24 hours, when:
      • Required by a police officer of a certain rank in the event of an accident involving a person, animal, or vehicle, or damage to property.
      • Requested by a person in charge of an animal that may become unmanageable due to the vehicle’s presence.
    • Drivers must provide their name, address, and the owner’s details to any person affected by an accident or damage, provided the person also furnishes their name and address.

Investigation and Amenities

  • Accident Investigation:

      • The state government may frame schemes to provide for in-depth study and analysis of the causes of motor vehicle accidents.
  • Wayside Amenities and Facilities:

      • Schemes may be established to develop wayside amenities on highways, such as rest areas, food and fuel stations, and other facilities for the convenience of road users.
      • Traffic aid posts and truck parking complexes along highways may also be planned and developed under these schemes.
  • Vehicle Inspection after Accidents:

    • Authorised personnel can inspect vehicles involved in accidents and remove them for examination purposes.
    • The owner must be informed of the location where the vehicle is taken, and the vehicle must be returned to the owner, driver, or person in charge within 24 hours after completing the necessary formalities.

Enforcement and Penalties

  • Enforcement Authorities:

      • The Motor Vehicles Department and traffic police are primarily responsible for enforcing traffic control regulations.
      • Authorised officers from these departments have the power to inspect vehicles, issue challans (tickets) for violations, and take necessary actions to ensure compliance.
  • Penalties for Violations:

      • Violations of traffic control regulations can result in penalties, such as fines, suspension or cancellation of driving licences, and even imprisonment in severe cases.
      • The penalties may vary depending on the nature and severity of the offence, with higher penalties for offences that endanger public safety or cause damage to property.
  • Compounding of Offences:

    • Certain offences may be compounded (settled) by paying a prescribed fee, allowing offenders to avoid prosecution if they admit to the violation and pay the specified amount.
    • The compounding fee may vary based on the offence and is typically higher for repeat offenders.

Public Awareness and Education

  • Awareness Campaigns:

      • Government agencies and non-governmental organisations regularly conduct public awareness campaigns to educate road users about traffic control regulations, road safety practices, and the consequences of violations.
      • These campaigns may utilise various media channels, such as television, radio, print media, and social media platforms, to reach a wider audience.
  • Driver Education and Training:

      • Comprehensive driver education and training programs are essential for instilling responsible driving habits and promoting adherence to traffic control regulations.
      • These programs may be integrated into the curriculum of educational institutions or offered through specialised driving schools.
      • Refresher courses and periodic evaluations may be required for commercial vehicle drivers and other high-risk categories.
  • Community Involvement:

    • Involving local communities in traffic control initiatives can be highly effective in promoting compliance and fostering a sense of collective responsibility.
    • Community-based organisations, resident welfare associations, and neighbourhood watch groups can play a vital role in raising awareness, reporting violations, and supporting enforcement efforts.

Technology and Innovation

  • Intelligent Transportation Systems (ITS):

      • Advancements in technology have led to the development of Intelligent Transportation Systems (ITS), which encompass a range of technologies and applications aimed at improving traffic management and road safety.
      • Examples of ITS include traffic monitoring cameras, variable message signs, automatic number plate recognition systems, and real-time traffic information systems.
  • Automated Enforcement Systems:

      • To enhance enforcement efforts, automated systems such as speed cameras, red-light cameras, and weigh-in-motion systems can be employed to detect and record traffic violations.
      • These systems can help streamline the enforcement process, reduce human error, and improve compliance with traffic control regulations.
  • Data Analytics and Modeling:

    • Advanced data analytics and modelling techniques are being used to analyse traffic patterns, identify bottlenecks, and optimise traffic flow.
    • These tools can assist authorities in making informed decisions regarding infrastructure improvements, traffic signal timing, and other traffic management strategies.

Motor Vehicles Temporarily Leaving or visiting India

The Central Government of India has the authority to make rules regarding motor vehicles temporarily leaving or entering the country. These rules are designed to ensure smooth and safe cross-border travel while also protecting the interests of the country and its citizens.

The Central Government has the power to:

  1. Grant and authenticate travel documents:
    • Travelling passes, certificates, or authorizations for individuals temporarily taking their motor vehicles out of India.
    • Travelling passes, certificates, or authorizations for individuals temporarily leaving India and desiring to drive a motor vehicle during their absence.
  2. Prescribe conditions for temporary possession and use of motor vehicles:
    • Conditions under which motor vehicles brought temporarily into India from outside may be possessed and used within the country.
    • Conditions under which individuals entering India from outside for a temporary stay may drive motor vehicles in India.
  3. Facilitate and regulate cross-border motor vehicle services:
    • Rules for motor vehicles operating between India and other countries under reciprocal arrangements, carrying passengers or goods for hire or reward.
    • Conditions for bringing in, possessing, and using such vehicles in India.
    • Conditions for taking such vehicles from India to other countries.
    • Conditions for entry and exit of drivers and conductors of such vehicles.
    • Grant and authentication of travel documents for drivers and conductors.
    • Particulars (other than registration marks) to be displayed on such vehicles and the manner of display.
    • Use of trailers with such vehicles.
    • Exemptions from certain provisions of the Motor Vehicles Act or rules for such vehicles, drivers, and conductors.
    • Identification of drivers and conductors.
    • Replacement of lost or defaced travel documents, permits, licences, or other prescribed documents.
    • Exemptions from customs, police, or health laws to facilitate such road transport services.
    • Any other prescribed matter related to cross-border motor vehicle services.

It’s important to note that the rules made by the Central Government cannot confer immunity from paying any taxes levied on motor vehicles or their users in any state within India.

Furthermore, certain provisions of the Motor Vehicles Act or rules made by State Governments related to registration, identification, construction, maintenance, equipment, licensing, and qualifications of drivers and conductors will not apply to motor vehicles, drivers, or conductors covered under the rules made by the Central Government for temporary movements.

Liability without Fault in Certain Cases

In certain situations involving motor vehicle accidents, the law imposes liability on the vehicle owner(s) to pay compensation for death or permanent disablement, even if the owner(s) were not at fault. This concept is known as “Liability Without Fault in Certain Cases.”

Under this law, if a person dies or suffers permanent disability due to an accident involving a motor vehicle (or multiple vehicles), the owner(s) of the vehicle(s) involved are jointly and severally liable to pay compensation. This means that the owner(s) are legally responsible for paying the compensation, regardless of who was at fault for the accident.

The compensation amounts are fixed sums:

  • For death: Rs. 50,000
  • For permanent disablement: Rs. 25,000

The claimant (the person seeking compensation) does not have to prove that the death or permanent disablement was caused by any wrongful act, neglect, or default on the part of the vehicle owner(s) or any other person. This makes it easier for the claimant to receive compensation.

Furthermore, the claim for compensation cannot be defeated or reduced even if the person who died or suffered permanent disability was partially responsible for the accident due to their own wrongful act, neglect, or default.

This law provides an additional right to claim compensation, over and above any other rights the claimant may have under other laws or provisions. However, if the claimant is entitled to compensation under both this law and another law based on the principle of fault, the claimant must first claim compensation under this law. If the compensation awarded under this law is less than what they would receive under the other law, they can claim the remaining amount under the other law.

This law aims to provide a speedy and straightforward mechanism for obtaining compensation in cases of death or permanent disablement resulting from motor vehicle accidents, without the need to establish fault or negligence on the part of the vehicle owner(s).

Insurance Of Motor Vehicles Against Third Party Risks

Key Definitions

When it comes to motor vehicle insurance, there are certain terms that are crucial to understand. These definitions lay the foundation for interpreting and applying the provisions related to insurance coverage. Let’s delve into the key terms defined in this section:

  1. Authorised Insurer: This term refers to an insurance company that is currently licensed and authorised to provide general insurance services in India under the General Insurance Business (Nationalisation) Act, 1972. It also includes government insurance funds authorised to offer general insurance under the same Act.
  2. Certificate of Insurance: This crucial document is issued by an authorised insurer upon the issuance of an insurance policy. It serves as evidence that a valid insurance policy is in force for the specified vehicle. The certificate contains important details such as the policy number, insured’s name, vehicle registration number, and any conditions or limitations applicable to the policy.
  3. Liability: In the context of motor vehicle insurance, liability refers to the legal responsibility or obligation arising from causing death, bodily injury, or property damage to a third party. It includes liability under Section 140 of the Motor Vehicles Act, which deals with compensation for accidents involving motor vehicles.
  4. Policy of Insurance: This term encompasses both the traditional insurance policy document and the certificate of insurance issued by the insurer.
  5. Property: The definition of property is broad and includes not only the goods carried in the motor vehicle but also roads, bridges, culverts, causeways, trees, posts, and milestones that may be damaged in an accident.
  6. Reciprocating Country: A reciprocating country is one that has a mutual agreement with India, allowing motor vehicles registered in one country to operate in the other country based on the insurance policies issued in their respective countries.
  7. Third Party: This term includes not only individuals but also the government itself. In the context of motor vehicle insurance, a third party is any person or entity other than the insured and the insurer who may be affected by the actions or negligence of the insured.

Necessity for Insurance against Third-Party Risk

When you own and operate a motor vehicle, you are taking on a huge responsibility. A vehicle can potentially cause significant damage to people and property if not handled carefully. This is why it is absolutely essential to have proper third-party insurance coverage for your vehicle.

What is Third-Party Insurance?

Third-party insurance covers you for any liability you may incur if your vehicle causes injury to another person or damage to someone else’s property. This could include medical expenses, repair costs, legal fees, and compensation claims from the affected third party. Without this insurance, you would be personally liable to pay for all the damages out of your own pocket.

The Legal Requirement

In India, it is legally mandatory for all motor vehicles used in public places to have valid third-party insurance coverage as per the Motor Vehicles Act. Operating a vehicle without this insurance can lead to penalties, fines, and even imprisonment in certain cases. The law recognizes the immense risks involved with motor vehicles and aims to protect third parties from undue financial losses.

By having third-party insurance, you gain legal protection and comply with the requirements. In the unfortunate event of an accident, the insurer will cover the liabilities arising from death, bodily injury, and property damage to any third party involved as per the policy terms and conditions.

Exceptions to the Rule

There are a few exceptions where third-party insurance is not legally required. This includes vehicles owned by the government and used for non-commercial purposes. Certain local authorities, state transport undertakings and government corporations can also be exempted if they maintain a separate fund to cover third-party liabilities.

However, for regular citizens using their personal vehicles in public areas, having valid third-party insurance is non-negotiable. Failing to do so can leave you vulnerable to lawsuits and potentially devastating financial consequences.

The Importance of Responsibility

Driving on public roads involves sharing space with other vehicles, pedestrians, and property owners. Having third-party insurance is a responsible choice that acknowledges the risks involved and ensures the protection of innocent parties in case of an unfortunate incident caused by your vehicle.

It not only safeguards you from potential legal hassles and financial burdens but also provides peace of mind. You can drive with the confidence that your insurer has your back if a mishap occurs that leads to third-party liabilities.

Requirements of Policies and Limits of Liability

The law lays down specific requirements for insurance policies and defines the limits of liability that must be covered.

Policy Requirements: For an insurance policy to comply with legal requirements, it must meet the following conditions:

  1. Issued by an Authorised Insurer: The policy must be issued by an insurance company authorised to provide general insurance in India under the General Insurance Business (Nationalisation) Act, 1972, or by a government insurance fund authorised for the same.
  2. Cover against Third-Party Liabilities: The policy must insure the person or persons specified against any liability incurred due to: a) Death or bodily injury caused to any person, including the owner or authorised representative of goods carried in the vehicle. b) Damage to the property of a third party. c) Death or bodily injury caused to any passenger of a public service vehicle.

However, the policy need not cover certain liabilities, such as: a) Injury or death of the insured person’s employee arising out of employment. b) Contractual liabilities.

  1. Certificate of Insurance: The insurer must issue a certificate of insurance to the insured person, containing the prescribed particulars and conditions of the policy.

Limits of Liability: The insurance policy must cover any liability incurred in an accident up to the following limits:

  1. No limit for liability arising from death or bodily injury, except in cases where the insurer has the right to avoid or cancel the policy.
  2. A limit of Rs. 6,000 for liability arising from damage to the property of a third party.

It’s important to note that if the liability exceeds the amount covered by the policy, the insurer is entitled to recover the excess from the insured person.

Compliance with these policy requirements and liability limits is crucial to ensure that in the event of an accident, the interests of the insured person and third parties are adequately protected. It also helps in smooth claim settlement and avoids legal complications.

Validity of Policies Issued in Reciprocating Countries

In today’s globalised world, cross-border travel has become increasingly common, both for personal and commercial purposes. As vehicles move across international borders, it’s essential to ensure that their insurance coverage remains valid and enforceable. This is where the concept of “reciprocating countries” comes into play.

A reciprocating country is one that has entered into a mutual agreement with India, allowing for the recognition and acceptance of motor vehicle insurance policies issued in either country. This arrangement is designed to facilitate seamless insurance coverage for vehicles operating on routes or within areas common to both nations.

The Motor Vehicles Act, 1988, specifically addresses the validity of policies issued in reciprocating countries. Section 148 of the Act states that if a motor vehicle registered in a reciprocating country operates on a route or within an area common to India and that country, and there is a valid insurance policy in force in relation to the use of the vehicle in the reciprocating country, then that policy shall be considered effective throughout the common route or area, as if it had complied with the requirements of the Indian law.

This provision ensures that vehicle owners and operators do not have to obtain separate insurance policies for each country they travel to, as long as the countries involved have a reciprocal agreement in place. It eliminates the hassle and potential complications that could arise from having to navigate different insurance regulations and requirements in each jurisdiction.

However, it’s important to note that the acceptance of policies issued in reciprocating countries is subject to any rules that may be made under Section 164 of the Act. These rules may introduce specific modifications or additional requirements to ensure compliance with Indian insurance regulations.

The concept of reciprocating countries and the recognition of their insurance policies is a pragmatic approach to facilitating cross-border movement of vehicles while maintaining adequate insurance coverage. It promotes ease of travel, reduces administrative burdens, and fosters cooperation between nations in the realm of motor vehicle insurance.

Duty of Insurers to Satisfy Judgments and Awards

When you purchase motor vehicle insurance, you expect the insurer to protect you financially in case of an unfortunate accident. However, insurers sometimes try to avoid or cancel policies to escape liability. The Motor Vehicles Act, 1988, addresses this issue by imposing a statutory duty on insurers to satisfy judgments and awards against insured persons, even if the insurer has grounds to cancel the policy.

Under Section 149 of the Act, if a court or tribunal issues a judgement or award against an insured person for a liability covered by the policy, the insurer must pay the awarded compensation to the third party, up to the sum assured under the policy. This obligation applies despite the insurer’s entitlement to avoid or cancel the policy.

The insurer must pay not only the compensation amount but also any costs and interest imposed by the court or tribunal. This statutory obligation ensures that innocent third parties, who may have suffered injuries or property damage due to the insured’s actions, receive the compensation they rightfully deserve.

However, the insurer’s duty to satisfy judgments and awards is subject to certain conditions. The insurer must receive notice of the legal proceedings from the court or tribunal before the judgement or award is given. This notice allows the insurer to participate in the proceedings and defend the case on specific grounds, such as a breach of policy conditions or non-disclosure of material facts by the insured.

If the judgement or award is obtained from a court in a reciprocating country (a country with a mutual agreement with India), the insurer registered in India must still honour the judgement, provided they received notice of the proceedings and had the opportunity to defend the case.

The Act also addresses scenarios where the insured person becomes insolvent or a company goes into winding up. In such cases, the insured person’s rights against the insurer are transferred to the third party, ensuring that the third party can claim compensation directly from the insurer.

Furthermore, the Act invalidates any policy conditions that restrict the insurance coverage for liabilities that the policy is required to cover under the law. This provision protects third parties’ rights and prevents insurers from using technical grounds to deny compensation.

Rights of Third Parties against Insurers on Insolvency of the Insured

When it comes to motor vehicle insurance, the rights of third parties involved in accidents must be safeguarded, even in the event of the insured person’s insolvency or financial distress. The Motor Vehicles Act, 1988, has provisions in place to ensure that the rights of third parties are not compromised in such situations.

The Insolvency Scenario In the unfortunate event that an insured person becomes insolvent, files for bankruptcy, or enters into a composition or arrangement with creditors, their rights against the insurer under the insurance contract are transferred to the third party to whom the insured person is liable. This transfer of rights takes place by operation of law, irrespective of any provisions to the contrary in any other law.

For instance, if an insured person becomes insolvent and is liable to a third party for injuries sustained in an accident, the rights of the insured person against the insurer are automatically transferred to the third party. This ensures that the third party can directly claim compensation from the insurer, without being affected by the insured person’s financial situation.

Company Winding Up or Receivership Similarly, if the insured person is a company, and a winding-up order is issued, a resolution for voluntary winding up is passed, or a receiver or manager is appointed for the company’s business or undertaking, the rights of the company against the insurer are transferred to the third party to whom the company is liable.

This transfer of rights also applies in cases where possession is taken by or on behalf of the holders of any debentures secured by a floating charge on the company’s property. The purpose of these provisions is to protect the interests of third parties who may have suffered damages or injuries due to the use of the insured company’s vehicles.

Conditions and Limitations 

It is important to note that the transfer of rights from the insured person to the third party is subject to certain conditions and limitations. For instance, the insurer’s liability to the third party cannot exceed the liability that the insurer would have had towards the insured person under the insurance policy.

Additionally, if the insurer’s liability to the insured person exceeds the liability of the insured person to the third party, the excess amount remains payable to the insured person or their estate. Conversely, if the insurer’s liability is less than the insured person’s liability to the third party, the third party retains the right to claim the balance directly from the insured person.

The provisions related to the transfer of rights in case of insolvency or winding up are designed to strike a balance between protecting the interests of third parties and ensuring that the insurer’s obligations are not unduly expanded beyond the scope of the insurance policy.

Duty to Give Information as to Insurance

If you own or drive a motor vehicle in India, it’s crucial to be aware of your legal duty to provide information regarding your vehicle insurance when required by law enforcement authorities. This obligation is outlined in the Motor Vehicles Act, and failure to comply can lead to penalties.

Under Section 151 of the Act, no person against whom a claim is made for liability related to death, bodily injury, or property damage caused by their motor vehicle shall refuse to state whether they were insured for that liability. If they were insured or would have been insured if the policy wasn’t avoided or cancelled, they must provide the particulars of the insurance policy as specified in the certificate of insurance.

This duty becomes especially important in certain situations, such as:

  1. Insolvency or Bankruptcy: If a person becomes insolvent, makes an arrangement with creditors, or has their estate administered due to insolvency law, they must provide information about any existing insurance policies upon request by anyone claiming liability against them.
  2. Company Winding Up: In the event of a winding-up order or voluntary winding up of a company, the company’s official assignee, receiver, trustee, liquidator, or person in possession of the company’s property must provide insurance information upon request by anyone claiming liability against the company.
  3. Accidents and Police Inquiries: If an accident occurs involving death or bodily injury due to the use of a motor vehicle, the driver must produce the insurance certificate, registration certificate, driving licence, and permit (if applicable) to a police officer at the time of the accident or when reporting the accident.

The duty to provide insurance information extends beyond just verbally stating the details. Under Section 151(4), the person obligated to give the information must also allow inspection and copying of the insurance policy documents, receipts, and any other relevant documents in their possession or control.

Failure to comply with this duty can have serious consequences. For instance, under Section 158(1), if a driver fails to produce the required documents, including the insurance certificate, when demanded by an authorised police officer, they can be liable for conviction.

It’s important to note that this duty is not just a formality; it serves to protect the rights of third parties who may have claims against the insured person or company. By providing the necessary insurance information, it becomes easier to establish the existence of a valid policy and ensure that compensation can be sought from the insurer if required.

Settlement between Insurers and Insured Persons 

When it comes to motor vehicle insurance, settlements between insurers and insured persons are subject to specific regulations to protect the rights of third parties involved in accidents. These regulations aim to ensure that any settlement reached does not undermine the ability of third parties to claim compensation for damages or injuries sustained.

The Motor Vehicles Act, 1988, explicitly states that no settlement made by an insurer concerning a claim that might be made by a third party for liability covered under the insurance policy shall be valid unless the third party is a party to the settlement. This provision safeguards the interests of third parties who may have a legitimate claim against the insured person.

For instance, if an insured driver causes an accident resulting in injuries to a pedestrian, the insurer cannot reach a settlement with the insured driver without involving the pedestrian (the third party) in the settlement process. Any such settlement made without the third party’s involvement would be considered invalid.

The rationale behind this regulation is to prevent situations where the insured person and the insurer reach an agreement that could potentially compromise the third party’s ability to receive fair compensation. By requiring the third party’s involvement, the law ensures that their rights are protected, and they have a voice in the settlement process.

Furthermore, the Motor Vehicles Act also addresses scenarios where the insured person becomes insolvent or undergoes winding up (in the case of a company). In such cases, any agreement, waiver, assignment, or payment made between the insurer and the insured person after the liability to the third party has been incurred, and after the commencement of insolvency or winding up proceedings, shall not be effective in defeating the rights transferred to the third party under the Act.

This provision ensures that even if the insured person’s financial situation changes, the rights of the third party to claim compensation from the insurer remain intact. The insurer cannot use the insured person’s insolvency or winding up as a means to circumvent their obligations to the third party.

It is important to note that these regulations apply only to liabilities covered under the insurance policy, such as death, bodily injury, or property damage caused by the use of a motor vehicle in a public place. They do not extend to other types of liabilities that may not be covered by the policy.

Insolvency of Insured Persons and Effect of Death on Certain Causes of Action

In the event of the insured becoming insolvent, making a composition or arrangement with creditors, or undergoing a winding-up process (in case of a company), the Motor Vehicles Act provides specific provisions to protect the interests of third parties who may have claims against the insured person.

Firstly, the insolvency or winding-up of the insured person does not affect their liability towards third parties in cases of death, bodily injury, or property damage caused by the insured vehicle. This means that even if the insured person is insolvent, they remain legally responsible for any such liabilities.

Secondly, the rights of the insured person against the insurer are transferred to the third party to whom the liability was incurred. In other words, the third party can directly claim compensation from the insurer, bypassing the insolvent insured person. This provision ensures that the rights of innocent third parties are safeguarded, even when the insured person is unable to fulfil their obligations.

It is important to note that any conditions in the insurance policy that attempt to void or alter the rights of the parties upon the insolvency of the insured person are deemed ineffective. The insurer cannot use the insured person’s insolvency as a reason to deny or limit the compensation payable to third parties.

Effect of Death on Certain Causes of Action: The Motor Vehicles Act also addresses situations where the insured person dies after an event that has given rise to a claim under the insurance policy. In such cases, the death of the insured person does not bar the survival of any cause of action arising out of the said event against their estate or the insurer.

This provision ensures that the legal heirs or representatives of the deceased insured can continue to pursue claims and receive compensation from the insurer, even after the insured person’s demise. It prevents the insurer from using the insured person’s death as a reason to deny or limit the compensation payable to eligible claimants.

Effect of Certificate of Insurance and Transfer of Certificate 

 The effects and implications of holding a valid certificate of insurance, as well as what happens when you transfer the ownership of your vehicle are as follows :

Effect of Certificate of Insurance 

The certificate of insurance is more than just a piece of paper – it carries significant legal weight. According to the Motor Vehicles Act, when an insurer issues a certificate of insurance to an insured person, the following implications come into play:

  1. Policy Conformity: If the actual insurance policy has not been issued yet, the insurer is legally deemed to have issued a policy conforming to the description and particulars stated in the certificate of insurance.
  2. Favourable Terms: If the terms of the actual policy are less favourable to the insured person or other claimants than the particulars mentioned in the certificate, the policy is legally deemed to be in terms conforming to the certificate. This protects the rights of the insured and third parties.

Transfer of Certificate of Insurance 

When you sell or transfer the ownership of your motor vehicle, the certificate of insurance and the associated policy are also deemed to be transferred to the new owner. This transfer takes effect from the date of transfer of the vehicle’s ownership.

However, the new owner is required to apply to the insurer within 14 days of the transfer, providing the necessary details to update the certificate of insurance and policy in their name. The insurer is then obligated to make the necessary changes, reflecting the transfer of insurance coverage to the new owner.

This provision ensures continuity of insurance coverage for the vehicle, even after a change in ownership. It also protects the new owner by automatically transferring the existing insurance policy, preventing any potential lapses in coverage.

Importance of Compliance 

Failure to comply with the requirements related to the certificate of insurance or the transfer process can have legal consequences. It is crucial for both the seller and the buyer to follow the prescribed procedures to ensure a smooth transition of insurance coverage and avoid any potential legal issues or liability in case of an accident or claim.

Claims tribunal under the Motor Vehicle Act

In the event of a motor vehicle accident resulting in death, bodily injury, or damage to a third party’s property, the Motor Vehicles Act provides for the establishment of specialised tribunals known as “Claims Tribunals.” These tribunals are set up to adjudicate claims for compensation arising from such accidents, ensuring that victims or their legal representatives receive fair and timely compensation. Let’s explore the key aspects of these Claims Tribunals.

Establishment and Composition:

  1. State Governments are empowered to constitute one or more Claims Tribunals for specific areas through official notifications in the State Gazette.
  2. A Claims Tribunal can consist of one or more members appointed by the State Government. If there are multiple members, one of them is designated as the Chairman.
  3. To be eligible for appointment as a member of a Claims Tribunal, an individual must either be a sitting or former Judge of a High Court, a sitting or former District Judge, or qualified to be appointed as a Judge of a High Court or District Judge.

Jurisdiction and Application for Compensation:

  1. Claims Tribunals have jurisdiction to adjudicate claims for compensation arising from accidents involving death, bodily injury, or damage to a third party’s property caused by the use of motor vehicles.
  2. An application for compensation can be filed by the injured person, the owner of the damaged property, the legal representatives of the deceased (in case of death), or an authorised agent acting on behalf of the claimant(s).
  3. The application can be filed either with the Claims Tribunal having jurisdiction over the area where the accident occurred or with the Claims Tribunal within whose jurisdiction the claimant resides, carries on business, or where the defendant resides.

Inquiry and Award:

  1. Upon receiving an application, the Claims Tribunal issues a notice to the insurer involved and provides an opportunity for all parties, including the insurer, to be heard.
  2. The Claims Tribunal holds an inquiry into the claim(s) and determines the amount of compensation that appears just and specifies the person(s) to whom the compensation should be paid.
  3. The award also specifies the amount to be paid by the insurer, owner, driver of the vehicle involved, or any combination thereof.
  4. The Claims Tribunal has the power to direct the payment of interest on the compensation amount from the date of making the claim.
  5. In certain cases, such as collusion between parties or failure to contest the claim, the Claims Tribunal can implement (bring in) the insurer as a party to the proceedings.

Appeals and Recovery:

  1. Any aggrieved person can appeal against the award of a Claims Tribunal to the High Court within 90 days from the date of the award. However, the appellant must deposit a specified amount (25,000 rupees or 50% of the awarded amount, whichever is less) with the High Court before the appeal can be entertained.
  2. If the amount in dispute in the appeal is less than 10,000 rupees, no appeal is permitted.
  3. The Claims Tribunal can issue a certificate to the Collector (a revenue authority) to recover the awarded amount from the person liable to pay, in the same manner as an arrear of land revenue.

Exclusion of Civil Court Jurisdiction: Once a Claims Tribunal has been constituted for an area, no Civil Court has jurisdiction to entertain any question relating to a claim for compensation that can be adjudicated upon by the Claims Tribunal. Civil Courts are also barred from granting injunctions against actions taken or to be taken by the Claims Tribunal in respect of compensation claims.

State Government Rules: State Governments are empowered to make rules for carrying out the provisions related to Claims Tribunals. These rules may cover matters such as the form and particulars of the application for compensation, fees (if any), procedures to be followed by the Claims Tribunals, powers vested in them, the form and manner of appeals, and other related matters

Offences, Penalties And Procedures under the Motor Vehicles Act

General Provision for Punishment of Offences 

The law provides that whoever contravenes any provision of the Motor Vehicles Act or related rules/notifications shall be punishable with a fine of up to Rs. 100 for the first offence, and up to Rs. 300 for subsequent offences, if no specific penalty is mentioned.

Penalties Related to Travel and Duty of Conductors 

Travelling without a valid pass/ticket can attract a fine of up to Rs. 500. Conductors who fail to issue a ticket, issue an invalid ticket, refuse to accept the fare, or fail to check tickets can be fined up to Rs. 500. Permit holders or drivers of contract carriages who refuse to play the vehicle or carry passengers can be fined – up to Rs. 50 for two/three-wheelers and up to Rs. 200 for other vehicles.

Disobedience, Obstruction, and Refusal of Information 

Wilfully disobeying lawful orders, obstructing authorities, or refusing to provide required information can lead to a fine of up to Rs. 500 or imprisonment up to 1 month, or both.

Offences Related to Driving Licences and Authorizations 

Allowing unauthorised persons to drive can attract imprisonment up to 3 months or a fine up to Rs. 1000, or both. Driving without a valid licence is punishable with imprisonment up to 3 months or a fine up to Rs. 500, or both. Applying for or obtaining a licence while disqualified is an offence punishable similarly.

Penalties for Speeding and Dangerous Driving 

Exceeding prescribed speed limits can lead to a fine of up to Rs. 400 for the first offence, and up to Rs. 1000 for subsequent offences within 3 years. Causing someone to drive at excessive speed can attract fines. Rash/dangerous driving invites imprisonment up to 6 months or a fine up to Rs. 1000 for the first offence, and up to 2 years imprisonment or a fine up to Rs. 2000, or both, for subsequent offences within 3 years. Drunken driving (exceeding 30 mg blood alcohol content) or driving under the influence of drugs listed by the government can lead to imprisonment up to 6 months or a fine up to Rs. 2000 for the first offence, and up to 2 years imprisonment or a fine up to Rs. 3000, or both, for subsequent offences within 3 years. Driving while mentally/physically unfit invites a fine up to Rs. 200 for the first offence, and up to Rs. 500 for subsequent offences.

Penalties Related to Accidents 

Failing to comply with duties upon causing an accident (such as stopping the vehicle, providing information/documents, taking reasonable steps to secure medical attention for injured persons) can attract imprisonment up to 3 months or a fine up to Rs. 500, or both. For subsequent offences, the punishment can extend to 6 months imprisonment or a fine up to Rs. 1000, or both.

Abetment of Certain Offences 

Abetting rash/dangerous driving, drunken driving, or driving while mentally/physically unfit is punishable with the same penalty as for the primary offence.

Racing and Trials of Speed 

Permitting or participating in any kind of vehicular race or trial of speed on public roads without government permission can lead to imprisonment up to 6 months or a fine up to Rs. 500, or both.

Vehicle-Related Offences 

Driving a vehicle with defects that could render it unsafe or cause danger can attract a fine of up to Rs. 250, or imprisonment up to 3 months or a fine up to Rs. 1000 if an accident causing injury/damage occurs. Violation of safety/emission norms invites a fine of Rs. 1000 for the first offence and Rs. 2000 for subsequent offences. Improperly carrying hazardous goods can lead to a fine up to Rs. 3000 or imprisonment up to 1 year, or both for the first offence, and up to Rs. 5000 fine or 3 years imprisonment, or both for subsequent offences. Vehicle importers/dealers selling or altering vehicles to violate conditions can be fined up to Rs. 500.

Using Unregistered Vehicles 

Driving or causing to be driven an unregistered vehicle can attract a fine of Rs. 5000 for the first offence, and imprisonment up to 1 year or a fine up to Rs. 10,000, or both for subsequent offences.

Using Vehicles without Permits 

Driving or causing a vehicle to be driven without a valid permit or in violation of permit conditions can lead to a fine up to Rs. 5000, which can’t be less than Rs. 2000 for the first offence, and imprisonment up to 1 year or a fine up to Rs. 10,000, which can’t be less than Rs. 5000, or both for subsequent offences.

Offences by Agents and Canvassers

Engaging as an agent/canvasser for vehicle hire without authority can attract a fine up to Rs. 1000 for the first offence, and imprisonment up to 6 months or a fine up to Rs. 2000, or both for subsequent offences.

Offences Related to Vehicle Weight 

Driving an overloaded vehicle in violation of prescribed weight limits can lead to a minimum fine of Rs. 2000 plus an additional Rs. 1000 per tonne of excess load, along with liability for off-loading charges. Refusing to stop and submit an overloaded vehicle for weighing can attract a fine up to Rs. 3000.

Repeat Offences and Minimum Fines

For subsequent offences of a similar nature within 3 years, the court shall not impose a fine less than 1/4th of the maximum fine, unless reasons are recorded in writing. This does not restrict the court’s power to award imprisonment as per the offence.

Driving Uninsured Vehicles 

Driving or causing a vehicle to be driven without third-party insurance can lead to imprisonment up to 3 months or a fine up to Rs. 1000, or both.

Taking Vehicles without Authority 

Taking and driving away a vehicle without the owner’s consent can attract imprisonment up to 3 months or a fine up to Rs. 500, or both. Forcibly seizing control of a vehicle is punishable with imprisonment up to 3 months or a fine up to Rs. 500, or both. Attempting these acts or abetment is also an offence.

Unauthorised Interference with Vehicles 

Entering/mounting a stationary vehicle or tampering with its brake/mechanism without authority can lead to a fine up to Rs. 100.

Offences by Companies 

If an offence is committed by a company, every person in-charge and responsible for the company’s affairs at the time of offence, as well as the company itself, shall be deemed guilty unless they prove otherwise. Directors, managers, secretaries or other officers consenting/conniving with the offence shall also be held guilty.

Composition of Certain Offences 

Certain offences, before or after prosecution, may be compounded by authorised officers/authorities by collecting specified sums notified by the State Government. Upon compounding, no further proceedings shall be taken against the offender.

Penalties for Obstructing Traffic Flow 

Keeping a disabled vehicle on a public road causing traffic impediment can attract a penalty up to Rs. 50 per hour until removed. Towing charges shall also be recoverable from the vehicle owner if removed by a government agency.

Powers of Police Officers 

Police officers in uniform can arrest without a warrant any person committing offences like rash/dangerous driving, drunken driving or taking a vehicle without authority. For drunken driving, the person must undergo a medical examination within 2 hours, else be released. Police can also arrest without warrant if the offender refuses to give name/address.

Breath Tests 

A police officer or authorised departmental officer can require any person driving a vehicle to undergo a breath test if there is reasonable suspicion of drunk driving. If a vehicle is involved in an accident and there is reasonable cause to suspect alcohol/drug presence, the driver can be required to give a breath specimen at the hospital, police station or nearby location. If the breath test indicates alcohol presence, the police officer can arrest the person. Refusal to give a breath specimen despite being required can also lead to arrest unless at a hospital as an indoor patient.

Laboratory Tests

An arrested person may be required at a police station to provide a blood specimen for laboratory testing to analyse alcohol/drug content if the breath test indicates presence of alcohol or there was a refusal to give a breath specimen. For hospital indoor patients, a blood specimen may be required with the doctor’s consent.

Presumption of Unfitness to Drive 

In cases of drunk/drugged driving offences, if it is proved that the accused refused/failed to provide a breath/blood specimen when requested by the police, it may be presumed as supporting evidence of unfitness to drive unless reasonable cause is shown.

Power to Impound Documents 

Police/authorised officials can seize any identification mark/document on a vehicle if suspected to be false. Driving licences can also be seized if the driver is charged with an offence and may abscond/avoid court summons, in exchange for a temporary acknowledgement authorising driving for a specified period.

Power to Detain Vehicles 

Police/authorised persons can seize and detain vehicles being used without registration, permit or in violation of permit conditions. Alternatively, the registration certificate itself may be seized for vehicles used without registration/permit.

Summary Disposal of Cases 

For certain offences, the court may state on the summons that the accused can plead guilty by a specified date and remit a sum (up to maximum fine) to be specified. For certain specified offences, the court shall endorse the conviction on the driving licence if a guilty plea is made along with submission of the licence.

Restriction on Conviction 

For offences like speeding and dangerous driving, conviction cannot be made unless the offender was warned at the time of offence, or a notice specifying details was served within 14 days, or a summons was served within 28 days, unless the offender’s conduct caused the failure of service.

Courts to Send Intimation about Convictions 

Courts convicting any person holding a driving licence shall send intimation to the licensing authority that issued/renewed the licence, stating the offence details, punishment awarded and other prescribed particulars.

Conclusion

In conclusion, this Motor Vehicles Act aims to promote safety on our roads and highways for all users. By establishing clear rules and regulations governing vehicle operation, licensing requirements, and traffic laws, we can reduce accidents, injuries, and fatalities. Stringent penalties for violations will act as a deterrent against reckless and negligent behaviour behind the wheel.

This act also emphasises the importance of proper vehicle maintenance and inspection to ensure roadworthiness. By keeping unsafe vehicles off the roads, we protect both drivers and pedestrians. Additionally, the provisions related to commercial vehicles and public transportation prioritise passenger safety.

Ultimately, this comprehensive legislation represents our commitment to making our transportation network as safe and efficient as possible. Its successful implementation will require cooperation from all motorists as well as robust enforcement by the relevant authorities.

By working together and adhering to the Motor Vehicles Act, we can save lives, prevent property damage, and make our roads safer for everyone. Safe driving creates a better environment for us all.




References :

Specific Relief Act, 1963 (OFFICIAL ACT)

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Important Note: This article is for informational purposes and does not constitute legal advice. Please consult a qualified legal expert for advice tailored to your specific situation.

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