Motor Vehicle Act, 1988

This article is written by Michael Shriney from the Sathyabama Institute of Science and Technology and has been further updated by Sakshi Kuthari. The article gives an outline of the Motor Vehicle Act, 1988. It discusses in detail the essential aspects, offences, amendments, claims tribunal and compensation. The changes done by the legislature in the (Amendment) Act, 2019 are also included. Some provisions have been completely repealed and some have been added or varied from the Motor Vehicle Act, 1988 . It also includes the Supreme Court judgements, information on the Central Motor Vehicle Act of 2019, and Motor Vehicle Rules of 1989 and 2022.

Table of Contents

Introduction

The Motor Vehicle Act of 1988 (hereinafter referred to as the Act of 1988) regulates all the essential components of road transport vehicles. It took effect on July 1, 1989, covering various laws relating to traffic laws, vehicle insurance, motor vehicle registration, controlling permits, and penalties. For the purpose of ensuring and enhancing road safety, the Government of India, in consultation with the State Transport Ministers, came up with this Motor Vehicle (Amendment) Bill, 2017 to make amendments to the Motor Vehicle Act, 1988. This Bill was introduced by the Minister for Road Transport and Highways, Mr. Nitin Gadkari, on 15 July, 2019. It dealt with the issuance of licences and permits related to motor vehicles, established standards for motor vehicles, and imposed penalties for violations of these provisions. The Bill became law after receiving the President’s assent on 01 September, 2019.

There is a mandate under Section 3 of the Act of 1988 that all drivers must have a valid driving licence, and no vehicle can be driven unless it is registered under the Motor Vehicle Act, 1988. The Preamble of the Act aims to integrate and update motor vehicle legislation, requiring all drivers and conductors to obtain a licence and then drive a vehicle. Section 41(7) of the Motor Vehicles (Amendment) Act, 2019 (hereinafter referred to as the Act of 2019) provides that a vehicle’s registration certificate is valid for a time period of fifteen years from the date of registration and can be renewed.

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This article gives an outline of the Act of 1988, it’s important amendments, relevant and recent Supreme Court judgements, the New Amendment Act and Rules, important provisions of the Act, penalties under the Motor Vehicle Act and the differences between the Act of 1988 and the Act of 2019. Let us discuss each aspect of this Act in detail below:

An overview of Motor Vehicle Act, 1988

The Motor Vehicle Act comes within the ambit of the law of torts. The law of torts is based on the Latin maxim ubi jus, ibi-remedium, i.e., where there is a right, there is a remedy. This maxim brings into play the concepts of damage and compensation. At this point, the idea of compensating and giving damages comes into action. The Motor Vehicle Act, 1988, is considered a law of welfare aiming to provide relief to those injured in an accident. While the Motor Vehicle Act of 1939 initially consolidated all motor vehicle legislations, it required frequent amendments to stay updated. With the progression of advancements in road transport technology, the expansion of the road network, and changes in passenger transport patterns, a comprehensive revision of the Act became necessary to address new developments related to motor vehicles and its rules and regulations.

The main objective of the Act of 1988 is to provide relief to innocent road users who often, through no fault of their own, become victims of accidents and struggle to receive the compensation they deserve. Under this Act, beyond the laws relating to licensing and registration, various other aspects of road transport vehicles are also covered.

Motor insurance is one of the most important mandatory laws. The motor vehicle should at least have third-party insurance in order to register and drive a vehicle on Indian roads. The Act of 2019 introduces stricter penalties for driving a vehicle without a licence, including a fine of Rupees Two Thousand, three months of imprisonment, and community service for first-time offenders, and a fine of Rupees Four Thousand for repeated offenders.

Objectives of Motor Vehicle Act, 1988

The Act of 1988 was passed for the purpose of solving the most prominent issues mentioned below:

Offences covered under the Act

The original Motor Vehicle Act covers the following offences:

Important Sections of Motor Vehicle Act, 1988

The following are some of the most important provisions of the Act of 1988:

Essential requirement of a driving licence

Section 3 of the Act of 1988 addresses the necessity of carrying a driving licence. It states that-

Age restrictions related to driving of motor vehicles

Section 4 of the Act of 1988 deals with the age limitations for driving motor vehicles. It states that-

Responsibility of motor vehicle owners for violations of Sections 3 and 4

Under Section 5 of the Act of 1988, it is provided that no owner or person in charge of a motor vehicle shall allow anyone who does not meet the requirements of sections 3 or 4 to drive the motor vehicle.

Restrictions on holding driving licences

Section 6(1) of the Act of 1988 provides that no individual shall hold a driving licence while a valid licence is in effect, except for a learner’s licence.

Section 6(2) of the said Act provides that the holder of a driving licence or learner’s licence shall not allow it to be used by anyone else.

Section 6(3) of the said Act provides that nothing in this section shall prevent a licensing authority, as specified in subsection (1) of Section 9 of the said Act, from expanding the classes of vehicles that the driving licence permits the holder to drive.

Restriction on issuing learner’s licence for certain types of vehicles

Section 7(1) of the Act of 1988 provides that no individual shall be granted a learner’s licence to drive a transport vehicle unless they have held a driving licence for a light motor vehicle for at least a period of one year. This subsection shall not apply to e-carts or e-rickshaws.

Section 7(2) of the said Act provides that no individual under the age of eighteen years shall be issued a learner’s licence to drive a motorcycle without gear unless they have written consent from their guardian.

Necessity for registration

Section 39 of the Act of 1988 provides the necessity for motor vehicle registration, stating that no person is allowed to drive a motor vehicle in a public place, and no owner should permit or allow the motor vehicle to be driven shall in a public place by another person, unless it is registered and the vehicle’s registration certificate of registration has not been suspended temporarily or cancelled permanently.

Where registration should be made

Under Section 40 of the Act of 1988, it is provided that, in accordance with the provisions of Sections 42, 43, and 60, it is the duty of every owner of a motor vehicle to register his or her vehicle. It is to be done by any registering authority in the State that has jurisdiction over their residence or place of business where the vehicle is primarily kept.

How registration should be made

Section 41(1) of the Act of 1988 provides that an application for the registration of a motor vehicle should be submitted by or on behalf of the owner. It must be in the prescribed form and include the required documents, details, and information within the timeframe set by the Central Government.

First proviso of this subsection provides that in cases where a motor vehicle is owned jointly by several people, the application must be submitted by any one co-owner on behalf of all, and that individual will be regarded as the owner for the purposes of the said Act.

The second proviso provides that if there is a new motor vehicle, the registration application must be submitted by the dealer if the vehicle is being registered in the same State where the dealer is located.

Section 41(2) provides that, along with the application of sub-section (1) of Section 41, the prescribed fees must be paid as set by the Central Government.

Certificate of registration: Section 41(3) provides that the registering authority shall issue a certificate of registration in the name of the owner, in a format and containing the details as prescribed by the Central Government.

Section 41(4) provides that in addition to the required details in the certificate of registration, it must also indicate the type of motor vehicle based on its design, construction, and use.

Section 41(5) provides that the registering authority shall record the details of the certificate mentioned in subsection (3) of Section 41. The register is maintained in the format and manner prescribed by the Central Government.

Registration mark: Section 41(6) provides that the registering authority shall assign a distinguishing mark to the vehicle, referred to in the said Act as the registration mark. This mark shall have a set of letters and will be followed by specific letters and numbers allocated to the State by the Central Government through notifications in the Official Gazette. The registration mark must be displayed on the motor vehicle in the format and manner prescribed by the Central Government. The proviso to this subsection provides that for a new motor vehicle, for which registration is applied under the second proviso to subsection (1), the vehicle shall not be delivered to the owner until the registration mark is displayed in the prescribed format and manner.

Validity of certificate of registration: Section 41(7) provides that a certificate of registration issued under subsection (3) of Section 41, whether before or after the commencement of the said Act, for a motor vehicle shall be valid for a period of fifteen years from the date of issue of the registration certificate, subject to the provisions of this Act. The registration certificate may be renewed for such a duration as prescribed by the Central Government.

Renewal of certificate: Section 41(8) provides that an application for the renewal of a certificate of registration, submitted by or on behalf of the vehicle owner, must be made within the prescribed time limit and in the prescribed format, including the required details and information as set by the Central Government.

Section 41(9) of the said Act provides that application of registration certificate must also be accompanied by a fee determined by the Central Government.

Section 41(10) of the said Act provides that, subject to the provisions of Section 56 of the said Act (Certificate of fitness for transport vehicles), the registering authority may renew the certificate of registration upon receiving an application under subsection (8) of Section 41 for a duration as prescribed by the Central Government and shall notify the original registering authority if it is not the original authority. The Central Government has the authority to set different renewal periods for various types of motor vehicles.

Section 41(14) of the said Act provides that an application for a duplicate certificate of registration must be submitted to the last registering authority in the prescribed format, including the necessary details and information, along with the fee prescribed by the Central Government.

Necessity for permits

Section 66 of the Act of 1988 provides for the necessity for permits. It states that-

Speed limitation

Section 112 of the Act of 1988 deals with speed limitations for driving a motor vehicle. It states that-

Weight limitations and usage limitations

Section 113 of the Act of 1988 provides for weight limits and restrictions on usages. It states that-