Rs.75,000 Fine for Uninsured Car by Draft MV Act May Invite More Bribery

For all those who ply with vehicles either with an expired motor insurance or no insurance at all, it’s going to harsh and painful. The proposed Road Transport and Safety Bill 2014, if passed by the Parliament without changes, proposes hefty fines for vehicles on road without valid insurance.

According to the draft bill, if a person riding a 2-wheeler without a valid insurance policy is caught, he has to pay a hefty penalty of Rs. 10,000. Owners of 3-wheelers and light-motor vehicles have to fork out Rs. 25,000, while for cars and heavy vehicles, the fine amount is as high as Rs. 75,000. This penalty structure is higher by multiple times comparing to existing fine amount of Rs. 1,000, uniform to all motor vehicles, under the Motor Vehicle Act of 1988.

The draft bill, which is now available at the Road Transport Ministry’s website seeking public feedback, aims to replace the Motor Vehicle Act of 1988. The bill puts forward stern punishments for traffic and vehicular offenses, in particular, those relating drunken driving, accidents involving children, etc. Of course, penalties does serve their purposes of achieving conformity to road rules and more stringent they are, the more adherent people are.