Key Provisions of Vehicle Motor Act: Then vs Now
- Team Lawareness
- Feb 5, 2021
- 4 min read
-Blog By Sulakshana Pawar

Introduction
Due the ever so development and technological advancements are happening in the automobile field and with that increase in the network of roads which simultaneously include complex transport and passengers routes, it’s quite ever required that the Act is constantly changing and amended in order that we will continue with all the changes and therefore the challenges it poses.
NO-FAULT LIABILITY
Initially, the compensation was only awarded on the principle of fault in the Motor Vehicle Act, 1939. In the case of Zakaria and Ors. v Naoshir Cama Ors., there was a question raised as to whether or not the liability can be imposed to pay compensation even when there weren’t any rash or negligent actions on part of the owners. The Supreme Court was denying this. The Supreme Court was of the opinion that there cannot be any liability imposed on the part of the owner and the driver of the vehicle when there was an absence of negligence on their behalf.
There was a requirement to deal with the loss of life, accidents and hit and run cases caused by automobile accidents.
Legal ANALYSIS
Sections 140-144 of the Motor Vehicle Act covers the no-fault liability.
Section 140 talks about the liability to pay compensation in case of death or permanent disability. Further, under sec.140, subsection 2, the compensation to be paid in case of death is Rs. 50,000 and in case of permanent disablement of any person, Rs. 25,000 is to be paid.
According to the Section 142, the permanent disablement of an individual will only be taken into consideration if such person has suffered permanent privation of the sight of any eye, or hearing of ears, the privation of any part of the body or joint, or the destruction or permanent impairment of the joints, or permanent disfiguration of head or face.
It was provided that the claimant shall not be required to prove any fault of the owner of the vehicle or any other person for claiming compensation as mentioned in section 140. It means that the claimant shall not be required to plead and establish that there was any wrongful act, negligence or default was on the part of the owner(s) of the vehicle(s) concerned or of any other person while claiming compensation.
It should also be kept in mind that the claims for the compensation under section 140 shall neither be defeated by the reason of negligence or default of the accident victims nor shall the compensation payable be reduced on account of any such responsibility. Also, very importantly, the defence of contributory negligence isn’t allowed to be pleaded when the compensation under Section 140 is claimed.
LIABILITY WHEN THE VEHICLE IS NOT INSURED
This is a question which requires some pondering. If the vehicle is not insured as should have been under third party cover, even then the claimant has a right to claim compensation. But here, in this case, the responsibility will be fixed on the negligent driver or the owner of the vehicle. Such a person will have to pay the compensation to the victim out of his own pocket. This position is also maintained where a vehicle, belonging to the Central or State Government or a corporation is exempted from being insured under Section 146(2) and (3) of the Motor Vehicle Act,1988. And it is to be noted that exemption from the requirement of getting the vehicle insured does not imply exemption from liability to pay compensation.
LATEST AMENDMENT:
This rule would be applicable from October 1, 2020. The Union Ministry of Road Transport and Highways brought the new rules to ensure easy and hassle-free commutation.
A notification was issued by the Ministry of Road Transport and Highways concerning to the amendments within the Central Motor Vehicle Rules, 1989.
The amendments require the implementation of the new rules and maintenance of Vehicular Documents and E-Challans via the portal and therefore the same should be brought into effect from 1st October 2020. The new amendments would enforce the effective implementation of the MV Rules in a significant manner.
The Ministry Of Road Transport and Highways mentioned that the supply of IT services and electronic monitoring would enforce effective control by the administration through the traffic rules in India. This would directly cause for reduction of hassle and harassment of drivers and therefore the citizens.
The new rules brought into effect from October 1, 2020, mentions the below points-
No requirement of License/RC: Driving License, Registration, and Insurance documents are not required to be carried physically if registered and validated through the government portal from October 1st, 2020.
Digi Locker- Also known as M-Parivahan, is the portal where all the documents can be stored by registering their mobile numbers and are easily available in any play stores.
Revoking of Licence- revoking of License by a driver can also be done through this digital platform. The e-portal would record the details of the revoked driving license and update all the details accordingly.
Electronic Challans- Online portals will avail E-Challans for easy access by the citizens.
Free-hand Phones usage Allowed- drivers can now use free-hand phones for the purpose of navigation and directions. This only applicable when it doesn’t diverts a driver’s attention while driving and causes for any inconvenience or accidents.
CONCLUSION:
The law needs to keep pace with the charges happening in society. And in a country such as ours it is very important. The provisions related to the liabilities provided in the Motor Vehicles Act has been whenever necessary given due diligence. And it has tried to do justice to the disadvantaged. And to an impressive extent it has met its purpose.
References:
The Motor Vehicle (Amendments) Act, 2019.
Zakaria v. Naoshir Cama, AIR 1976 AP 171.
The Motor Vehicle Act (Amendment), 2019, s.140.
The Motor Vehicle (Amendments) Act 2020.
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