Now, Rs 5L compensation for death in car accidents

New Delhi: In a move aimed at making the revamped Motor Vehicles Act more stringent, the government has proposed compensation of Rs 5 lakh for death and Rs 2.5 lakh for grievous injury in a motor vehicle accident case. The compensation amount would be paid to the victims either by vehicle owner or insurer.

The move is also aimed at giving financial relief to road accident victims as death/injury of any earning person in road mishaps put an extra financial burden on the aggrieved family.

The revised Motor Vehicles Act, which was introduced by Union Road Transport Minister Nitin Gadkari in Lok Sabha on Monday also provides for higher penalties for violations and protection of good samaritans, among other provisions.

Amid concerns raised by some members over certain provisions in the bill, the Road Transport Minister said that the Central government is not looking to take away the rights of states and urged the House to pass the legislation which would help in saving more lives.

The bill was passed in the previous Lok Sabha but could not get approval from the Rajya Sabha. As per the Statement of Objects and Reasons of the bill, the period for renewal of transport licence would be increased to five years from three years and enable licensing authority to grant a licence to differently-abled persons.

Another provision proposed is to raise the time limit for renewal of driving licence from one month to one-year before and after the expiry date.