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Parliament Passes Motor Vehicle (Amendment) Bill, 2015
Mar 17, 2015

The Rajya Sabha on March 11 passed the Motor Vehicle (Amendment) Bill, 2015 which will pave the way for plying of e-rickshaws on the roads of the National Capital Region. The Bill was cleared by the Lok Sabha on March 3.

Key Features

  • With the aim of better regulation of traffic systems in cities, this Bill amends the existing Motor Vehicles Act, 1988.

  • It makes way for state governments to allow recognised automobile associations to issue driving certificates.

  • It also lays down a higher penalty structure for offences.

  • The Bill enhances penalties for offences, and provides different penalties for first and subsequent violations.

  • The Bill gives increased powers to state governments in matters such as regulating stage and contract carriages, in regulating service operators, and creation of authorised testing stations.

  • It will not only benefit the poor but will give a boost to Make in India initiative, as the battery-operated vehicle, which was at one point being shipped from China, would not be imported any longer as a Pune-based company is now manufacturing the vehicles.

  • The Bill changes the method of awarding compensation for motor accident claims.

  • If the fault of the driver is sought to be established, the claim shall be decided by the civil court or Motor Accident Claims Tribunal.

  • If the claimant does not seek to establish the fault of the driver, compensation shall be based on the victim’s income and age.

  • The Bill defines e-carts and e-rickshaws as special purpose battery powered vehicles with power up to 4000 watts and having 3 wheels. These vehicles can be used for carrying goods or passengers.

  • These vehicles should be manufactured, equipped and maintained in accordance with specifications as prescribed by Union government.

  • The Bill exempts drivers of e-rickshaw and e-cart from the requirement of learner’s licence to drive.

  • It gives powers to Union government to make Rules on the specifications for e-carts and e-rickshaws, and the conditions and manner for issuing driving licenses.

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