Govt proposes Rs 5 lakh compensation for death in motor vehicle accident case

Compensation of Rs 5 lakh for death and Rs 2.5 lakh for grievous injury in a motor vehicle accident case have been proposed by the government as it seeks to make the Motor Vehicles Act more stringent.

On Monday, the government again introduced a bill to amend the Motor Vehicles Act that also provides for higher penalties for violations and protection of good samaritans, among other provisions.

Amid concerns raised by some members over certain provisions in the bill, Road Transport Minister Nitin Gadkari said the central government is not looking to take away the rights of states and urged the House to pass the legislation which would help in saving more lives.

The bill was passed in the previous Lok Sabha but could not get approval from the Rajya Sabha.

The motor vehicle owner or the insurer would pay Rs 5 lakh compensation in case of death and Rs 2.5 lakh for grievous hurt, according to the bill.

It seeks to increase penalties for violations, facilitate grant of online learning licence, simplified provisions for insurance to provide expeditious help to accident victims and their families, and protection of good samaritans.

As per the Statement of Objects and Reasons of the bill, the period for renewal of transport licence would be increased to five years from three years and enable licensing authority to grant licence to differently-abled persons.

Another provision proposed is to raise the time limit for renewal of driving licence from one month to one year before and after the expiry date.