Be cautious on the road

One frequently comes across news of juveniles driving cars and meeting with accidents and several others driving under the influence of alcohol. History of road accident cases dragging on for years are well documented, which is why the passing of the Motor Vehicles (Amendment) Bill, 2016 by the Lok Sabha, makes it just a formality before it turns into a law that is much more important.

For the first time there will be clear accountability of the mishaps that will ensure law breakers are punished. There are changes that will check on vehicle ownership by linking driving license and vehicle registration with the owner’s Aadhaar. Also, strict penalties are proposed for traffic violations and the contractors who design and build faulty road designs will be held liable. There is also a provision to take care of citizens who extend help to accident victims and report accidents without being harassed themselves for helping.

The new law will make it difficult to obtain bogus driving licence, the proposed e-registration of vehicles will discourage theft and make it difficult for stolen vehicles to be registered easily. These changes will ease out movement of vehicles across different states without proof of ownership and other documentation.

The proposed law targets traffic offenders with stern penalties. The quantum of such penalties are also linked to the offence being committed, such as drunken driving, overloading, and nonadherence to safety norms by drivers, like non-usage of seat belts and helmets, depending on the vehicle in use. There is also suggested increase in compensation for hit and run cases from Rs 25,000 to Rs 2 lakh. It also has provision for payment of compensation up to Rs 10 lakh in road accidents fatalities. Fine for those driving without license is Rs 5,000 and those found drunken driving will be penalised with Rs 10,000. The new law has made fines very steep, which should inhibit traffic violations and careless driving.

Motor premiums rationalised

The regulator had mooted change in motor insurance in March, which has now been rationalised after widespread protests around the steep hike in third party motor insurance (See: Third party liability cover premiums). Basically, car and two-wheeler premiums will increase by up to 28 per cent, with insurance regulator IRDAI formally notifying revised third party liability insurance rates for the financial year 2017-18.

According to the IRDAI, this new notification will override an earlier order issued on March 28, 2017 and the new premium schedule shall apply retrospectively with effect from April 1, 2017. So, in case you have already paid a higher premium based on the earlier rates, the general insurance company through which you took the policy will return the additional amount they have collected for the policies sold during April 1 to April 17, 2017.

With these two changes coming in about the same time, drivers on roads will get more cautious. Not only will you need to keep up-to-date with the fitness of your vehicle and also drive keeping in mind safety aspects, you will pay up a higher premium if your car meets with an accident and needs repairs. Make sure you are not compromising anywhere when plying your vehicle on road, lest you face the music from the law and end up coughing up fines for an avoidable fault or mistake.

olmdesk@outlookindia.com