According to the latest Road Transport & Safety Bill proposal approved by the Parliament, driving an uninsured vehicle may cost expensive to auto owners. If person held driving without a proper vehicle insurance policy, then the penalty will be really huge. The fine limit is different for auto rickshaws and light motor vehicles.
In fact, this limit is too high for any truck or car driver. As per insurance experts, this proposal will modify Motors Vehicles Act. Its draft version was introduced on the ministry’s website seeking feedback from the public.
This bill proposes stringent penalties for traffic violations like an accident that involves child’s death and drunken driving. Such revised penalties will hike penetration of motor insurance. It will replace the Motor Vehicles Act, 1988. Although, covering any vehicle running on the street is compulsory.
As per the survey, around 70 percent of bikes and scooters plying on the road are not covered under auto insurance. Nearly one third of the trucks and cars are also uninsured. Auto owners can also lose their driving license for repeated traffic violations.
Insurance Regulatory and Development Authority has allowed longer tenure plans to motivate vehicle insurance penetration. Liability for motor vehicles is unlimited and long term schemes for motor insurance are in the works.
Also, the insurance sector wants the car insurance claim allowed under two jurisdictions, one where the automobile is registered and the other where the accident has happened.
Policyholders need to file the claim within around three years of the accident happens. This bill will raise fund to support injured people financially and also compensates victim’s legal representatives.