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Motor Insurance Act: Key Features
Mar 30, 2023

Key Features of Motor Vehicles Insurance Act Explained

The Motor Vehicles Act is an important legislation in India that governs the use of motor vehicles on public roads. It lays down various rules and regulations related to vehicle registration, driving licenses, traffic rules, and vehicle insurance. The act was first introduced in 1988 and has undergone several amendments over the years to keep up with the changing times and technology.

What is Motor Vehicles Act?

The Motor Vehicles Act is a comprehensive legislation that covers various aspects of motor vehicle usage in India. It lays down the procedure for vehicle registration and issuance of driving licenses. It also prescribes the rules of the road, such as speed limits, parking regulations, and traffic signals. One of the most important aspects of the Motor Vehicles Act is the provision for vehicle insurance. Every vehicle owner in India must have a valid insurance policy for their vehicle, which provides protection against damages to the vehicle as well as third-party liability. The act also provides for penalties and fines for violating its provisions. These penalties can range from a small fine to suspension or cancellation of the driving license. Overall, the Motor Vehicles Act plays a crucial role in ensuring the safety of road users and regulating the use of motor vehicles in India. It is important for all vehicle owners and drivers to be aware of its provisions and follow them to avoid any legal or financial troubles.

What are the offences covered under the Motor Vehicles Act?

The Motor Vehicles Act covers a wide range of offences related to the use of motor vehicles on public roads in India. Some of the most common offences covered under the act are:
  • Driving without a valid license

This is a serious offence that can lead to heavy penalties and even imprisonment. Every person who drives a motor vehicle on public roads must have a valid driving license.
  • Over-speeding

Driving above the prescribed speed limit is an offence that can lead to fines, suspension of the driving license, or imprisonment in certain cases.
  • Driving under the influence of alcohol or drugs

Driving while under the influence of alcohol or drugs is a serious offence that can lead to imprisonment, suspension of the driving license, or both.
  • Violation of traffic rules

This includes offences such as jumping a red light, not wearing a helmet or seatbelt, using a mobile phone while driving, and other similar violations.
  • Driving without valid insurance

Every motor vehicle owner in India must have a valid insurance policy for their vehicle. Driving without valid insurance is a punishable offence under the act.
  • Overloading of goods or passengers

Overloading of goods or passengers beyond the prescribed limits is a violation of the act and can lead to penalties and fines. These are just some of the common offences covered under the Motor Vehicles Act. The act also provides for penalties and fines for other offences such as driving without a registration certificate, violating pollution control norms, and more. It is important for all vehicle owners and drivers to be aware of these offences and follow the rules and regulations prescribed under the act to avoid any legal or financial troubles.

Updated List of Traffic Fines for Different Violations

In India, the Ministry of Road Transport and Highways periodically updates the fines for traffic violations under the Motor Vehicles Act. The latest updated list of traffic fines for different violations in India is as follows:
  1. Driving without a license: Rs. 5,000
  2. Driving despite disqualification: Rs. 10,000
  3. Driving under the influence of alcohol or drugs: Rs. 10,000
  4. Speeding or racing: Rs. 5,000
  5. Jumping a traffic signal: Rs. 1,000 to Rs. 5,000
  6. Not wearing a seatbelt while driving: Rs. 1,000
  7. Using a mobile phone while driving: Rs. 5,000
  8. Overloading of goods or passengers: Rs. 20,000
  9. Violating pollution control norms: Rs. 10,000
  10. Not giving way to emergency vehicles: Rs. 10,000
  11. Driving without valid insurance: Rs. 2,000
Now that you know about the offences under the Motor Vehicles Act and the updated list of fines, it is important to know that having a motor insurance policy is critical for every vehicle-owner. There is not only a fine for driving without an insurance policy, but also may attract imprisonment for up to three months. Here are the insurance-related rules specified under the Motor Vehicles Act:

Types of Motor Insurance

There are two types of motor insurance policies available in India:
  • Third-Party Insurance:

This type of insurance covers damages caused to third-party property or injuries caused to third-party individuals by the insured vehicle. *
  • Comprehensive Insurance:

This type of insurance covers both third-party liability as well as damages to the insured vehicle due to accidents, natural disasters, or theft. *

Motor Insurance Premium Calculator

The premium for motor insurance is calculated based on several factors such as the type of vehicle, its age, the purpose of use, and the location of the vehicle. You can use a motor insurance premium calculator to determine the premium amount. The higher the risk associated with the vehicle, the higher the premium amount. For example, luxury cars or vehicles used for commercial purposes have a higher risk associated with them, and hence, have a higher premium.

Motor Insurance Claim

In case of an accident or damage to the insured vehicle, you can file a motor insurance claim with their insurance provider. The insurance company will then send a surveyor to assess the damage and determine the cost of repairs. If the claim is approved, the insurance company will cover the cost of repairs or provide compensation as per the policy terms.

Conclusion

The Motor Vehicles Act mandates that every vehicle owner in India must have a valid insurance policy for their vehicle. This insurance provides protection against damages to the vehicle as well as third-party liability. In case of any damage, you can file a claim with their insurance provider to get timely and adequate compensation. Vehicle owners must ensure that they have a valid insurance policy for their vehicle to comply with the law and to protect themselves against any unforeseen risks.     * Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.      

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