image

Motor Vehicles Act

About Motor Vehicles Act

Facebook IconLinkedIN Icon

What is Motor Vehicles Act

The Motor Vehicles Act, passed in the year 1988 by the Indian Parliament, regulates almost all aspects of road transport vehicles. It has provisions for traffic regulations, vehicle insurance, registration of motor vehicles, controlling permits and penalties. The Act came into force from 1 July 1989.
 
To make roads safer, the Government of India in consultation with state transport ministers came up with this Motor Vehicles (Amendment) Bill to makes changes to the Motor Vehicles Act, 1988. The Motor Vehicles (Amendment) Bill, 2017, was passed by the Lok Sabha on April 10, 2017.
 
The Rajya Sabha cleared the Bill on July 31, 2019, with 108 votes in favour and 13 against it, with three amendments moved by Road Transport and Highways Minister Nitin Gadkari.
 
The Motor Vehicles (Amendment) Bill, 2019 proposes a huge increase in various penalties for traffic violations, protection to Good Samaritans, recall of defective vehicle parts by automobile companies, holding builders accountable for poor quality of infrastructure and making vehicle owners criminally liable for violations committed by juvenile drivers.
 
Below are some of the important proposals in the Motor Vehicles (Amendment) Bill:
 
1) It makes Aadhaar mandatory for getting a driving licence and vehicle registration.
 
2) For deaths in hit-and-run cases, the government will provide a compensation of Rs 2 lakh or more to the victim's family. Currently, the amount is just Rs 25,000.
 
3) In traffic violations by juveniles, the guardians or owner of the vehicle would be held responsible, unless they prove the offence was committed without their knowledge or they tried to prevent it.
 
4) The minimum fine for drunk driving has been increased from Rs 2,000 to Rs 10,000.
 
5) The Bill mandates automated fitness testing for vehicles.
 
6) The Bill allows the central government to order for recall of motor vehicles if a defect in the vehicle may cause damage to the environment, or the driver, or other road users
 
7) The Bill provides for a National Road Safety Board, to be created by the central government through a notification. The Board will advise the central and state governments on all aspects of road safety and traffic management, including standards of motor vehicles, registration and licensing of vehicles, standards for road safety, and promotion of new vehicle technology.
 
8) The Bill provides for a scheme for cashless treatment of road accident victims during golden hour.
 

Latest Updates on Motor Vehicles Act

The Centre has amended motor vehicle rules to permit vehicles running on 100 per cent ethanol, clarifying that existing vehicles need not switch fuels or undergo modifications.

Updated On: 26 Oct 2026 | 11:54 PM IST

E100 fuel allows vehicles to run on nearly pure ethanol

Updated On: 26 Oct 2026 | 3:59 PM IST

India plans a dedicated regulatory framework for bike ambulances. The draft rules set standards for construction, safety, registration and periodic fitness inspections

Updated On: 04 Aug 2026 | 11:45 AM IST

V2V communication enables nearby vehicles to exchange real-time information, including their speed, position, direction, acceleration, etc

Updated On: 03 Aug 2026 | 4:39 PM IST

As app-based carpooling platforms expand in India, questions remain over where cost-sharing ends and commercial transport begins under the country's existing motor vehicle laws

Updated On: 03 Jul 2026 | 11:05 AM IST

The Supreme Court has ruled that compensation awarded under the Motor Vehicles Act cannot be reduced by amounts received through employer-provided insurance or social security benefits

Updated On: 17 Mar 2026 | 12:06 PM IST

Court calls blanket prohibition a restraint on trade; firms welcome move

Updated On: 23 Jan 2026 | 10:14 PM IST

Amendments to motor vehicle rules link toll clearance to ownership transfers and fitness certificates to curb fee evasion

Updated On: 22 Jan 2026 | 1:35 PM IST

As per the provisions, an NOC for transfer of ownership or transfer of a vehicle from one state to another will not be granted until any unpaid user fee is cleared

Updated On: 20 Jan 2026 | 10:17 PM IST

Seller must ensure the vehicle remains insured during ownership transfer so that any liability is borne by the insurer, as per the Himachal Pradesh High Court ruling

Updated On: 28 Oct 2025 | 10:56 PM IST

These guidelines, built on the legal foundations of the Motor Vehicles Act, 1988 aim to regulate the operations of app-based cab aggregators such as Ola, Uber, Rapido, and others

Updated On: 29 Jul 2025 | 9:22 AM IST

The top court on September 2, 2024 passed directions on the implementation of Section 136A of the Motor Vehicles Act read with Rule 167A of the Motor Vehicles Rules

Updated On: 20 Jan 2025 | 5:21 PM IST

This typically includes seat belts, but it can also encompass other features such as airbags, seat belt pretensioners, and load limiters

Updated On: 23 Aug 2024 | 10:24 PM IST

The legal question has given rise to various disputes over payment of claims by insurance companies in accident cases involving transport vehicles being driven by those having licences to drive LMVs

Updated On: 21 Aug 2024 | 1:26 PM IST

The draft notification, published on August 14, proposes an amendment to the Central Motor Vehicles Rules, 1989

Updated On: 15 Aug 2024 | 10:14 PM IST

Industrial zones are classified into red, orange, green, and white categories, determined by a pollution index score derived from factors such as emissions, effluents and hazardous waste generation

Updated On: 21 Mar 2024 | 11:08 PM IST

Industry players said that the proposed move is a step in the right direction, providing relief to the industry while also ensuring stricter environmental enforcement

Updated On: 26 Feb 2024 | 11:21 PM IST

The Amended Rules also states that a government-owned vehicle or a vehicle seized by law enforcement, will not be eligible for any incentives

Updated On: 25 Jan 2024 | 11:04 PM IST

Gahlot said that as of now the government has not dealt with the issue of "surge pricing" imposed by the app-based cab aggregators but if complaints are received from people, rules will be framed

Updated On: 29 Nov 2023 | 10:48 PM IST

Plying of old diesel or petrol vehicles and trucks carrying non-essential material in the national capital attracts a fine of Rs 20,000 under the Motor Vehicles Act

Updated On: 08 Nov 2023 | 9:15 PM IST