Union Cabinet approves Motor Vehicle (Amendment) Bill, 2016 

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for Motor Vehicle (Amendment) Bill 2016.  The Amendment aims to improve
•    Every year 5 lakh road accidents are reported in the country in which 1.5 lakh people lose their lives.  Government is committed to reduce the accidents and fatalities by 50% in five years.
•    To address the issue of road safety, a draft Road Transport & Safety Bill was prepared soon after NDA Government came to power.  However, most of the States have expressed reservations.
•    To address the issue of road safety and to improve the facilitation of the citizens while dealing with transport departments, Ministry of Road Transport & Highways constituted a Group of Transport Ministers (GoM) of the States.  
•    The GoM headed by Sh. Yoonus Khan, Hon. Transport Minister of Rajasthan held three meetings.  A total of 18 Transport Ministers from different political parties participated in these meetings and they have submitted three interim reports. 
•    The GoM recommended that to address the pressing issue of road safety and improving transport scenario, Government should immediately bring amendments to the present Motor Vehicle Act.    
•    On the basis of recommendations of the GoM and other pressing requirements, MoRTH introduced the Motor Vehicle (Amendment) Bill 2016 for consideration of the Cabinet. Today Cabinet Chaired by Hon’ble Prime Minister Shri Narendra Modi has approved the bill.
•    In the present Motor Vehicle Act, there are 223 Sections out of which the Bill aims to amend 68 sections whereas Chapters 10 has been deleted and a Chapter 11 is being replaced with new provisions to simplify third party insurance claims and settlement process.