Cabinet Approves Amendments in Motor Vehicle Act 2016

We protest the exhorbitant rise in premium of the third party insurance, which has gone up by 800 percent from 2002 to till date," ACOGOA's President Channa Reddy said. On the insurer's argument about the rising third party accident claims and the compensation paid, Subramani said: "Let them show their numbers in a transparent manner. If the business is loss-making, why is that the insurers are offering discounts on premium that ranges up to 70 per cent in the case of comprehensive policies and up to two per cent in the case third party policies?"

"Our future course of action will depend on the outcome of the meeting with IRDAI (Insurance Regulatory and Development Authority of India) on Monday in Hyderabad," said SZMTWA's General Secretary G.R. Shanmugappa."The five states and one union territory (in South India) will incur a loss of Rs 5,500 crore per day due to this agitation," he added. The move comes in wake of de-duplication of licences and registration of stolen vehicles. The government has decided to make an all-India register for driving licences and vehicles which would be available across the country. Gadkari said the Cabinet has approved various changes in the Motor Vehicle (Amendment) Bill 2016. These include 16 amendments and rejection of three suggestions made by the Parliament Standing Committee. The three major suggestions rejected by the government include registration of vehicles by only RTO and inspection of vehicles by RTO. Once the bill is approved vehicle dealers will be authorised to issue vehicle numbers and register them through an all-India electronic register. He said the government has also proposed compulsory vehicle recall, amendments like third party insurance, relief to good Samaritans, stricter punishment and fines to traffic rule violators, etc.The bill introduced in Parliament last year had proposed 89 clauses for amendment out of which only 57 were accepted by the Parliament Standing Committee on Transport, headed by Mukul Roy.

With the Cabinet approval, now decks are cleared for the government to bring much-needed reforms in the transport and road sector, he said, adding the government may table the bill in Parliament next week. The important aspects of the bill are 100 per cent e-governance to be brought in the transport sector, the minister said, adding identity verification using Aadhaar will be used, bad roads contractor to be liable for fine, drivers will be included in third part Insurance and Claims would be time bond.