MoRTH Proposes Amendments to the Motor Vehicles Act (MV Act)

The Ministry of Road Transport and Highways (MoRTH) has proposed amendments to the Motor Vehicles Act (MV Act) to:

• Curb uninsured vehicles
• Tighten driving licence (DL) norms
• Link insurance premiums with driver behaviour

Key Proposal: Behaviour-Based Insurance

Linking Premiums to Challan History

• Proposed amendment to Section 147 of the MV Act
• Empowers Insurance Regulatory and Development Authority of India (IRDAI) to:
  • Fix base insurance premiums and liabilities based on:
    • Vehicle age
    • Traffic violation (challan) history

Expanding Mandatory Third-Party Insurance

• Proposal to extend mandatory third-party insurance coverage to:
  • Owner
  • Driver
  • Occupants of personal vehicles
• Currently mandatory only for:
  • Commercial vehicles
• Aim:
  • Increase insurance penetration
  • Protect road users financially
• Issue highlighted:
  • Large number of vehicles, especially two-wheelers, remain uninsured

Driving Licence (DL) Reforms Proposed

1. Renewal & Driving Test

• Amendment to Section 9 (Issuance & Renewal of DL)
• Proposal:
  • Remove exemption from driving test during renewal if:
    • Applicant has a poor challan history
• Current rule:
  • No driving test required if renewal is sought within one year before licence expiry

2. Bar on Fresh Licence

• Proposal:
  • No fresh DL for applicants whose licence was revoked in the last 3 years
• Objective:
  • Improve road safety
  • Deter habitual offenders

3. Graded Licence System

• Proposal to:
  • Introduce graded eligibility for heavier/larger vehicles
  • Based on:
    • Driving experience
    • Skill progression
• Similar to international best practices

4. Medical Fitness Norms

• Mandatory medical certificate age proposed to be raised:
  • From 40 years → 60 years
• Applicable for:
  • New DL issuance
  • DL renewal