Repeat Traffic Offenders Could Lose Easy Licence Renewals Under New Motor Vehicles Bill
Repeat traffic offenders may soon have to retake driving tests before renewing their licences, while road accident victims could receive interim compensation much sooner. According to a Times of India report, the Centre is preparing sweeping amendments to the Motor Vehicles Act aimed at improving road safety and speeding up justice.
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Motor, Car Insurance: The Centre is planning sweeping amendments to the Motor Vehicles Act that could make driving licence renewals tougher for repeat traffic offenders while speeding up compensation for road accident victims, according to a report by the Times of India.
The proposed changes, which have been under consultation with states and various ministries for nearly two years, were recently presented to an informal Group of Ministers (iGoM) chaired by Defence Minister Rajnath Singh. The panel has reportedly cleared the proposals for finalisation, paving the way for the Bill to be introduced during the upcoming Monsoon Session of Parliament.
One of the key proposals is to make driving tests mandatory for motorists seeking renewal of their driving licences if they have a record of repeated traffic violations, as reflected in their challan history. The move aims to improve road safety by ensuring habitual offenders demonstrate their driving competence before receiving renewed licences.
The government has also proposed a major change in compensation rules for road accident victims. Under the amendments, Motor Accident Claims Tribunal (MACT) would be empowered to grant interim compensation to crash victims and their families instead of making them wait until the final disposal of their claims.
In another significant proposal, insurers or offending parties challenging a MACT award would have to deposit ₹10 lakh or 50% of the compensation amount awarded, whichever is lower, before filing an appeal. This marks a substantial increase from the current requirement of ₹25,000 or 50% of the award, whichever is less.
The government has also proposed raising the minimum compensation threshold for filing appeals in High Courts from ₹1 lakh to ₹5 lakh, a move intended to reduce frivolous litigation and expedite claim settlements.
According to the report, the amendments also seek to strengthen compliance with motor insurance norms. The Centre plans to restore the earlier system under which the Insurance Regulatory and Development Authority of India (IRDAI) determined third-party motor insurance premiums based on factors such as vehicle age and the owner’s traffic violation history. This authority was transferred to the road transport ministry through the 2019 amendments to the Motor Vehicles Act.
The proposed legislation further tightens penalties for repeat offenders by barring motorists from obtaining a fresh driving licence for three years if their existing licence has been revoked.
Another proposal seeks to raise the age at which a medical certificate becomes mandatory for obtaining or renewing a driving licence from the current 40 years to 60 years.
Road safety experts have largely welcomed the proposed reforms. Advocate and road safety expert Amarjeet Singh said empowering MACTs to provide interim compensation would offer timely financial relief to accident victims, especially as such cases often face lengthy legal delays.
If enacted, the amendments would mark one of the most significant overhauls of India’s road safety and motor vehicle compensation framework in recent years.
