Motor Vehicle Act overhaul: Commercial bikes, 12-mth deadline for MACT case

The Ministry of Road Transport proposes a 12-month deadline for MACT cases and legal clarity for bike-based ride-hailing services, among 67 amendments to the Motor Vehicle Act

The Ministry of Road Transport and Highways has proposed major changes to the Motor Vehicle Act, including a 12-month deadline for Motor Accident Claims Tribunals (MACTs) to resolve cases. It also proposes allowing motorcycles to be used commercially by classifying them under "contract carriage", enabling ride-hailing services like Rapido and Uber to legally use them, according to a report by The Times of India.

Currently, all vehicles can be used under contract carriage, which refers to vehicles hired to transport passengers. However, this amendment seeks to specifically address the use of motorcycles, providing legal clarity on the matter.

These proposed changes come after several states imposed restrictions on using motorcycles for ride-hailing. Additionally, the ministry is revising guidelines for cab aggregators to include motorcycles, with a particular emphasis on passenger safety.

67 amendments to be presented in Winter session of Parliament

Among the 67 amendments, which are expected to be presented during the Winter Parliamentary session, are new definitions for "buses of educational institutions" and a reclassification of light motor vehicles (LMVs) based on their gross weight. The draft also introduces a definition for three-wheelers, following a Supreme Court case.

A key change involves redefining "educational institution buses" as vehicles carrying more than six people, excluding the driver, that are owned, leased, or hired by schools to transport students and staff. It also suggests doubling the penalties for traffic violations involving these buses to hold both drivers and institutions more accountable, the report said.

The government is pushing for swift parliamentary approval in response to a Supreme Court inquiry into whether a person with an LMV licence can operate a transport vehicle with an unladen weight of up to 7,500 kg, classified as "goods LMVs".

Application process in 6 months

Another amendment proposes that states be required to process applications for cab aggregators, automated test stations (ATS), and accredited driver training centres within six months. If states fail to meet this deadline, the central government’s guidelines will apply.

To address the issue of underage driving, the ministry suggests allowing 16- to 18-year-olds to operate motorcycles with an engine capacity up to 50cc or electric motorcycles with a maximum motor power of 1,500 watts and a top speed of 25 kmph.

The primary goal of the proposed 12-month deadline for MACTs is to ensure faster compensation for accident victims and their families. If MACTs are unable to meet the deadline, they must provide written explanations. Additionally, tribunals can accept claims submitted after the six-month limit if applicants offer valid reasons for the delay, the report said.

The draft also requires states to consult with highway authorities before lowering speed limits on national highways (NHs). Currently, the speed limit for cars is 100 kmph on NHs and 120 kmph on expressways, but inconsistent speed reductions by states have caused confusion for drivers unfamiliar with certain routes.