Govt proposes ₹5 lakh compensation for death in motor vehicle accident case

Nitin Gadkari, Ministry of Road Transport and Highways, toll, The Federal, English news website
Union Minister for Road Transport and Highways Nitin Gadkari speaks in the Lok Sabha. Photo: PTI

Compensation of ₹5 lakh for death and ₹2.5 lakh for grievous injury in a motor vehicle accident case have been proposed by the government as it seeks to make the Motor Vehicles Act more stringent.

On Monday, the government again introduced a bill to amend the Motor Vehicles Act that also provides for higher penalties for violations and protection of good samaritans, among other provisions.

Amid concerns raised by some members over certain provisions in the bill, Road Transport Minister Nitin Gadkari said the central government is not looking to take away the rights of states and urged the House to pass the legislation which would help in saving more lives.

Also Read: 86% Ujjwala beneficiaries return to take second refill: Petroleum Minister


The bill was passed in the previous Lok Sabha but could not get approval from the Rajya Sabha. The motor vehicle owner or the insurer would pay ₹5 lakh compensation in case of death and ₹2.5 lakh for grievous hurt, according to the bill.

It seeks to increase penalties for violations, facilitate grant of online learning licence, simplified provisions for insurance to provide expeditious help to accident victims and their families, and protection of good samaritans.

As per the Statement of Objects and Reasons of the bill, the period for renewal of transport licence would be increased to five years from three years and enable licensing authority to grant licence to differently-abled persons.

Another provision proposed is to raise the time limit for renewal of driving licence from one month to one year before and after the expiry date.

Responding to concerns flagged by some members, Gadkari said he was ready to discuss all issues and emphasised that the bill was prepared after discussions and recommendations by state transport ministers during the previous regime.

The provisions in the legislation are not binding on states and it is up to them to implement it, the minister said.

The bill was introduced by Minister of State for Road Transport V K Singh in the Lok Sabha.

According to Gadkari, around 30 per cent of driving licences in the country are bogus. About 1.5 lakh people die and 5 lakh people get injured in road accidents every year, he

“My department has failed to pass the bill in the last five years but the number of accidents has reduced by around three-four per cent in the last five years while the incidence came down by around 15 per cent in Tamil Nadu during the same period,” he noted.

Trinamool Congress member Saugata Roy opposed the bill, saying certain provisions would take away powers of state governments and would also infringe on their rights. Another
party member Mahua Moitra also opposed some provisions of the bill.

Congress leader in the Lok Sabha Adhir Ranjan Chowdhury said he was opposing a few provisions of the bill and not in entirety.