Implications of 2017 Motor Vehicle Act Amendment

The 2017 Motor Vehicle Act Amendment focuses on reducing road accidents, providing speedy treatment to victims, and establishing a Motor Vehicle Accident Fund. It introduces several key objectives, amendments, and insertions like e-Governance, higher penalties, and improvements in licensing. The amendment also addresses issues such as hit-and-run cases, juvenile offenses, and centralized data management. Overall, it aims to enhance road safety and streamline the regulatory framework for motor vehicles.

• Motor Vehicle Act
• Road Safety
• Motor Vehicle Accident Fund
• Legislation
• Traffic Regulations

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1. 27th India Fellowship Seminar Cyber risk and Terrorism risk - Challenges in pricing Presenters Names: T.V.S Sai Aditya Topic: Motor Vehicle Act- Background and implication of changes in the Act Guide Name: Kirti Kothari Supervisor: P.A. Balasubramanian, FIAI Date: 1stJune 2017 Mumbai Indian Actuarial Profession Serving the Cause of Public Interest

2. Agenda Motor Vehicle Act, 1988-A Snapshot Main Objectives of the 2017 Amendment Bill Amendments and Insertions Higher Penalties e-Governance and Licensing Motor Vehicle Accident Fund TP Liability and Compensation Accidental Relief Implications to Insurers Other Amendments

3. Motor Vehicle Act,1988- A Snapshot Licensing Came in July, 1989 Replaced MVA, 1939 217 Sections with 14 Chapters Penalties Registration Insurance Maintenance

4. Key Objectives of the 2017 Amendment Bill Reduce road accidents by 50% by 2022 Safer roads Speedy treatment to accident victims Motor Vehicle Accident Fund

5. Insertions and Amendments Insertions Amendments e-Governance Centralized Data base Motor Vehicle Accident Fund Good Samaritan protection Golden Hour Treatment Vehicle Recall Road Safety and Transport Policy Penalties Hit and Run Compensation TP Liability Juvenile Offences Licensing

6. e-Governance & Licensing Adhaar linkage Downward revision of licensing age limits( other than transport) from 50 to 40. Extension up to 60. Applied Age Up to 40 40-50 50-55 Above 55 Validity Up to 50 10 years Up to 60 5 years 30 day extension after expiry removed. Transport license Sec 14 Validity extended from 3 to 5 years Min. Educational Qualification removed Deduplication - National Register of Driving Licenses Sec 25A New Vehicle application made by Dealer Sec 41 Vehicle delivery only after registration Penalty applies if otherwise Speed guns, closed-circuit television cameras, wearable cameras, automated testing etc. Sec 136A, Sec 56

7. Motor Vehicle Accident Fund Originally Initiated by Supreme Court Use of Fund Treatment of Accident Victims Hit and Run Compensation Accidents where no one is liable Automatic cover to all citizens Sourcing defined by Central Government Grant or loan given by Central Government Balance of Solatium Fund Other sources to be defined Sec 164

8. Accidental Relief Golden Hour Treatment Sec 162 Centrally maintained Fund Cashless treatment Good Samaritan Protection Sec 134A Optional Identity disclosure Criminal Liability Higher Hit and Run Compensation Sec 161 25k to 2lakhs for death 12.5k to 50k for injury Higher Compensation for No Fault 10 lakhs for death and 5 lakhs for injury Previous compensations were 50k and 25k respectively

9. Higher Penalties 2 to 10 times increase Penalty General Speeding Drunk Driving 2000 10000 Seat belt Insurance Helmet License Overload TW Overload CV Old 100 500 New 500 5000 Disqualification of license for 3 months Steep increase for CV and Aggregators 100 1000 100 500 100 2000 20000 1000 2000 1000 5000 2000 Driver Refresher Course New Penalties 5k for oversize vehicles 25k to 100k for Aggregators 10k for not providing way for emergency vehicles 25k+ 3 year Guardian imprisonment for Juvenile offences

10. TP Liability & Compensation Proposed Cap rejected in Lok Sabha Report Delay Cap of 6 months -Sec 166 Accident Information Report 3 Months time limit for Police Officer -Sec 159 Claims Settlement 1st Offer from Insurer within 30 days Info from Accident Information report or directly from Claimant Immediate Liability Owner of Vehicle or Insurer 5 lakhs for Death and 2.5 lakhs for Injury without plea. Plea required for higher amounts No Appeal up to 1 lakh. Earlier was 10k. Defense for Liability Alcohol or Drug Influence- statutory liability Non-receipt of Premium -Sec 149 -Sec 164 & 173 -Sec 150

11. Other Amendments Juvenile Offence Sec 199 Vehicle Recall Sec 110A 110B Harm to Environment, Passengers, road users Full reimbursement from Dealers Road Safety Board Sec 194 Standards of Vehicles Promoting new Technology Fines up to100k for Non-Compliance of Road Contracts Standards National Transportation Policy Sec 66A Rural Connectivity Better Utilization Reducing Congestion Improve Road Safety

12. Implications to Insurers-Drivers for Lower costs Better safety measures Lesser Violations Higher Penalties Better Road Quality Better Maintenance Penalties for road contractors Cashless treatment. Deaths converted to grievous injuries Golden Hour Treatment Better monitoring of licenses. Better fraud management e-Governance and De-dup Transport Policy Policy driven measures to ensure safety Claims expected to settle at cash takeaway level. (5 lakhs for death and 2.5 lakhs for injury) once liability is established Lesser TP cases contested Unsafe vehicle types off the road. Reduction of both OD and TP claims. Vehicle Recall

13. Implications to Insurers-Drivers for Higher costs Faster claims reporting Due to limit of 6 months for reporting More claims reported Since filing a plea is not required for claims below 5 lakhs for death and 2.5 lakhs for injury Current average cost for death is around 4-6 lakhs Faster claims settlement Time limit for Accident Information Report Time limit for initial settlement offer from Insurer Claims can be processed if reported directly to insurer by claimant Contribution to MVA Fund Source uncertain Will be higher than Solatium due to higher benefits

14. Summary Better Road Safety e-Governance and Data Base Good Samaritans Higher Penalties Policy Initiatives Vehicle Recall Improved Accidental Relief Third Party Compensation Golden Hour Treatment Motor Vehicle Accident Fund Hit and Run Compensation

15. Bibliography and Scope Covered Amendments Penalties Section 14-25A, 40, 41 55, 56, 62, 66 110 134, 136A 149, 159 161 -166 173 Bibliography Amendments to the Motor Vehicles (Amendment) Bill, 2016 The Motor Vehicles (Amendment) Bill, 2017, As passed by Lok Sabha, April 10, 2017 Notice of Amendments, The Motor Vehicles (Amendment) Bill, 2016, As introduced in Lok Sabha, April 7, 2017 Motor Vehicle Act 1988

16. Questions? Sai Aditya T.V.S Email: saiadityatvs@gmail.com