Motor Vehicle Regulation & Road Safety Bill 2015

suhaan.mukerji@plrchambers.com

To provide a framework for safe, fast, cost effective and inclusive movement for passenger and freight in the country thus enabling ‘make in India’

Vision

2 lac lives to be saved in first 5 years due to reduction in

road crash deaths

4% GDP improvement on account of

increased efficiency and safety of road transport

sector

10 lac Jobs to created with

increased private sector participation

Shift to international best practices: Institutional Framework

INSTITUTIONAL FRAMEWORK

Existing Proposed

Lead Agency

National Road Safety Authority No Yes

State Safety Authority No Yes

National Transport & Multimodal Coordination Authority No

Yes

State Transport Authority No Yes

National Road Safety Strategy Yes

Yes

Funding strategy to implement programs Partially funded

Dedicated Fund

Fatality reduction targets set* No Yes

Fatality reduction target (annual)* No Yes* To be set by the National Road Safety Authority

Shift to international best practices: Safer Mobility

SAFER MOBILITY

Existing Proposed

Policies to encourage investment in public transport Yes

Enhanced

Policies to separate road users to protect Subnationalvulnerable road users

Subnational

Policies to promote walking or cycling Yes Yes

Shift to international best practices: Safer and more efficient vehicles

SAFER AND MORE EFFICIENT VEHICLES

Existing Proposed

Vehicle Standards

New car assessment programme Yes Yes

Road worthiness tests for all cars and two wheelers (5 years) No

Yes

Vehicle Regulations

Time-bound vehicle type certification Partial Full

Vehicle categories of trailor, semi-trailor No Yes

Conformity certification of vehicle spare parts No Yes

Front and rear seat belts required in all new cars No Yes

Vehicle Registration

Unified vehicle registration system Yes Yes

Registration linked with insurance, vehicle offence, fitness No Yes

Private participation in vehicle fitness testing No Yes

Provision for recall of vehicles No Yes

Shift to international best practices: Safer Road Users

SAFER ROAD USERS

Existing

Proposed

Driver Licensing

Unified driver licensing system Yes Yes

Automated driver licensing test No Yes

Private participation in driver assessments No Yes

Penalty/demerit point system in place

License penalty points scheme No Yes

Strict penalties for offences involving children No Yes

Detailed impairment test for drunk driving No Yes

Law prohibits hand-held mobile phone use -- Yes

Law also applies to hands-free mobile phones -- Yes

Speed limits

Speed limits posted on all roads No Yes

Local authorities can set lower limits Yes Yes

Shift to international best practices: Safer Road Users

SAFER ROAD USERS

Existing

Proposed

Drunk-driving

BAC Limit 0.03g/dl 0.02g/dl

Random breath testing and/or police checkpoints Yes Yes

Motorcycle helmets

Applies to all drivers and passengers Subnational Yes

Helmet standard mandated Yes Yes

Seat-belt use

Applies to front and rear seat occupants Yes Yes

Child restraints

Child restraints, child zones, child helmets, and adult accountability No

Yes

Enforcement

Use of technology in compliance Partial Full

National Highway Traffic Regulation & Protection Service No Yes

Shift to international best practices: Post-Crash Care

POST-CRASH CARE

Existing Proposed

Vital Registration System Yes Yes

Standard post-crash follow-up of victims No Yes

Emergency access telephone number(s) Multiple Numbers

Single Number

Mandated

Emergency medicine training for doctors Yes Yes

Emergency medicine training for nurses Yes Yes

Emergency training for paramedics No Yes*

* To be set by the National Road Safety Authority

Shift to international best practices: Safer and More efficient infrastructure

SAFER & MORE EFFICIENT INFRASTRUCTURE

Existing Proposed

Transit infrastructure

Transit priority No Yes

Impetus for BRT & intra-city transport No Yes

Multimodal integration No Yes

Provisions for NMT & pedestrian bicycle infrastructure No Yes

Emphasis on safety of school children/women/Persons with disability No

Yes

Rationalization of public transport permits No Yes

Road infrastructure

Standards & guidelines for road infrastructure development, classification, design & construction No

Yes

Formal audits required for new road construction Yes

Yes

Logistics

Framework for preventing overloading No Yes

Provision for Integrated Freight Transport Hubs and inter-modal transport facilities No

Yes

Monitoring & evaluation system for monitoring performance targets No Yes

Shift to international best practices: Insurance and Crash Investigation

INSURANCE AND CRASH INVESTIGATION

Existing

Proposed

Insurance

Requirement of insurance companies to comply with policies, procedures for investigation, and settlement of claims No

Yes

Provision of cashless treatment for victims of all crashes during ‘Golden Hour’ No

Yes

Necessity for third-party insurance Full Full

Motor vehicle crash fund to provide mandatory insurance to all road users No

Yes

Crash Investigation

Standard crash investigation procedure No Yes

Detailed crash investigation report Partial Yes

Database of all drivers, vehicles and crashes Partial Full

• School bus guidelines• Directions to control and manage the flow of trafficM.C. Mehta v. UOI

(1997/98)

• Insurance liability where the driver does not possess a valid driving license

National Insurance Co. LTD v Swaran Singh & Ors

(2004)

• Charging those who cause death in a road crashes under a harsher clause in the IPC

Alistair Anthony Pareira v. State of Maharashtra

(2012)

• Hefty Fine to be used for compensation to victims of crashes

• Role of Bystanders & their protectionState v. Sanjeev Nanda

(BMW Case) (2012)

• Set up a permanent Road Safety monitoring Committee to oversee schemes of the Government of India and State Governments

S. Rajaseekaran v. U.O.I (2014)

Lacuna in Law – Activism by courts

• Permanent Committee set up in April 2014• Monitoring of schemes of GOI & States on

Road Safety

Justice Radhakrishnan

Committee

• Provided recommendations to the Court on first aid education in schools, infrastructure on National Highways and training of police

Justice Agarwal Committee

• Recommended a Highway Force • Increased trauma infrastructure on

highways & Universal Access Number• Good Samaritan Protection

Committee under AS(CS),

MHA

Lacuna in Law – Activism by courts

Public transport

• develop competitive market for public transport

Safety by design

• construction, design, maintenance and use of motor vehicles & roads

Environment• energy efficient and eco-friendly transport

system

Unified market

• facilitate movement of people, goods and services

Guiding Principles of the Bill

Motor Vehicle Regulation & Road Safety Bill 2014

Chapter Content1 Preliminary2 National Road Safety Authority of India3 Regulation of Motor Vehicle4 Unified Driver Licensing System5 Unified Vehicle Registration System6 National Road Transport & Multimodal coordination Authority7 Public passenger transport8 Public goods transport & national freight policy9 Infrastructure & Multimodal facilitation10 Road Safety & Traffic Management 11 Insurance of Motor Vehicles against third party risks12 Claims Tribunals13 National Highway Traffic Regulation & Protection Service14 Offences and Penalties15 Miscellaneous

Morth Members

Roads standards

Traffic management

Motor vehicle insurance

Testing standards

Transport infrastructure

Chairperson

Chapter 2: National Road Safety Authority of India

Technical Panels: Representative List

Dedicated focus and institutional

setup to save more than

200,000 lives in first 5 yrs

Independent agency for vehicle regulation

and road safety

Legally empowered & fully functional agency,

accountable to Parliament

Financial independence with innovate financing

mechanism for continued safety program

Chapter 2: National Road Safety Authority of India

Mandating & monitoring standards for Road Safety

Vehicle type approval, construction, design, and maintenance

Management of Single Unified Registration System

Management of Single Unified Driver Licensing system

Ensuring transport and infrastructure efficiency

Setting standards for all aspects mentioned in this Act

Functions

Promote innovation and technology

adoption

Create new economy around spare part

production

Improved vehicle design for safer travel

Time-bound vehicle type approval to

promote innovation. Conformity to make spare parts cheaper

SPARES

Chapter 3: Motor Vehicle Regulations

Chapter 3: Motor Vehicle Regulations

Pertains to all aspects of motor-vehicle regulation (design, weight, safety equipment, fuel efficiency, et al)

Covers aspects related to breach of regulations

Describes procedures related to procuring a Vehicle Type Approval Certificate and Certificate of Conformity, and the conditions for the suspension/cancellation of the same

Covers rules related to the retrofitting of vehicles

Describes the role of the National Authority with respect to Safety Tests

Describes conditions and obligations pertaining to the recall of vehicles

Simplified application and issuance

procedures for driver licensing system

Unified biometric system to avoid

duplication.

Technology adoption for driver testing

facilities

Transparent, single window driver licencing system. Automated driving test for increased capacity with private sector participation.

Chapter 4: Unified Driver Licensing System

Unified registration in a dynamic information

system

Manufacturer, owner, transport authority, insurer, enforcement agency all in one eco-system

Private sector participation in

establishing fitness centres

Integration of all stakeholders. Easy (online) transfer of vehicles across states. Increased private sector participation to create more jobs

Chapter 5: Unified Vehicle Registration System

Single national authority for improving

quality of road transportation

Focus on developing integrated transport

systems & multi-modal hubs

Feeder system and last mile connectivity for

people friendly mobility

Institutional setup to facilitate ‘Make in India’ vision. Seamless movement of goods and passengers across various modes

Chapter 6:National Road Transport & Multimodal coordination Authority

Comprehensive definition of “Transit Improvement Infrastructure”

Exhaustive list of categories of public transport facilities including special mention of Bus Rapid Transit(BRT)

Permit Rationalisation – National Permit & State Permit

Scheduled Service

Restricted Scheduled Service

Metered Service

Restricted Metered Service

Chartered Service

Persons with disability have been considered while framing the Act

Key Elements

Increasing the share of public passenger

transportation

Two-tier permit system - national and intrastate

permit

Developing & regulating public

transport schemes

Promoting eco-friendly public transportation for improving road safety, cost-effectiveness.

Chapter 7: Public passenger Transport

Simplified permits with online payment and

single portal clearances

Identification and development of freight

network

Address bottlenecks concerning trucking

industry

Increase in logistics efficiency will reduce inflation and enable Indian manufacturing to become globally competitive

Chapter 8: Public goods transport & National freight policy

Infrastructure for passenger and goods

movement

Specific provision for infrastructural needs of vulnerable road users

Integration across various modes of

transport

Dedicated infrastructure will improve safety. multimodal integration will improve reliability and lower the cost of transportation

Chapter 9: Infrastructure & Multimodal facilitation

Provision for enforcement of modern safety technologies

Creation of a motor vehicle crash fund for

immediate relief to crash victim

Special emphasis on safety of school

children and security of women

Electronic enforcement in urban clusters. Special emphasis for safety of vulnerable road users

Chapter 10: Road Safety & Traffic Management

Chapter 11: Insurance of Motor Vehicles against third party risks

Key new concepts: Necessity for third party insurance Duty to give insurance to customers Minimum premium and maximum liability of insurers under third-party insuranceDetailed Crash Investigation ReportPayment of compensation on a structured formula Motor Vehicle Crash Fund

Detailed Crash Investigation Report (immediate)

Insurance Company Officer Intimated and Appointed

Insurance Company to intimate to Claims Tribunal within 30 days

If no representation by Insurance Company, matter settled within 12 months

Chapter 12: Claims Tribunals

To adjudicate claims for compensation in respect of crashes involving death or bodily injury to persons arising out of the use of motor vehicles, or damages to any property of a third party

• Motor Vehicle Crash Fund• To be recouped by Insurance

Company on settlement/award

Immediate Stabilization

• Settlement• Award by tribunalInsurance

• GIC• Motor Vehicle Crash FundHit and Run

30

Relief to victims

Combination of penalty& fines to

enforce traffic rules

Strict enforcement for driving under the

influence of drugs & alcohol

Electronic detection & centralised offences

information to identify repeat-offenders

Graded penalty point system will act as a deterrent and improve traffic condition by reducing road rage

Chapter 14:Offences and Penalties

Chapter 14: Offences and Penalties

Key new concepts:

Driver penalty points system:

Scale of penalty points corresponding to degree and nature of offence

Accumulation of penalty points further penalty of cancellation.

Vehicle penalty points

Scale of points corresponding to nature of offence

Accumulation of penalty points further penalty of impounding or immobilisation

Unified schedule of penalties: combination of

Fines Imprisonment Penalty points

Licences/permits cancellation Impounding Compulsory refresher training

Deterrent fines to discourage road users from committing violations

Schedule of offences & penalty points system: Amendment possible by Safety Authority

Zero tolerance for consuming alcohol/drugs and driving

Key Aspects 5 types of penalties introduced: Penalty Points, Fines Imprisonment, Impounding and Refresher Training

License penalty points scheme: leading to cancellation/suspension of license

Contact free enforcement reduces corruption

Harsh penalties for offences involving children or resulting in their death/injury

Tests for Drink-Driving laid out in detail – including impairment tests (sobriety checks etc.)

Penalty points & fines laid out in Schedules – power to amend remains with National Authority

Thank you

Best Firm for Policy & Regulation- 2014 International Business Law Journal Awards

suhaan.mukerji@plrchambers.com