Rs 5 lakh compensation proposed under new Motor Vehicles Bill for death due to accident

A compensation of Rs 5 lakh has been proposed under the Motor Vehicles (Amendment) Bill, 2019, for death due to accident from a motor vehicle, Parliament was informed Thursday.

In case of grievous injury, a compensation of Rs 2.5 lakh has been proposed.

"It has been proposed that the amount of compensation under no fault liability in case of death due to any accident arising out of use of the motor vehicle is Rs 5 lakh and in case of grievous hurt it is Rs 2.5 lakh," Minister of Road Transport and Highways Nitin Gadkari told the Lok Sabha in a written reply.

He said the Bill provides for strict licensing regime, enhancement of penalties for violation under the act, automated testing of vehicles for fitness, provision for recall of defected vehicles, implementation of electronic monitoring and enforcement of road safety on the roads and inclusion of new offences.

The Cabinet has given nod for the amendment Bill to the Motor Vehicles Act, 1988, which will be introduced in the Lok Sabha.

The minister said, "The Bill proposes amendments in order to provide statutory recognition to transport aggregators. That will improve the operation of cab and bus aggregators."